LU · EuropeMW · Africa
Luxembourg vs Malawi: tax rates compared
Between the two, Luxembourg's income tax rate (45.8%) tops Malawi's (40%) by 5.8pp. The 200-country average is 28%: both sit above it.
Verified data covers five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | LU | MW | Difference |
|---|---|---|---|
| Income Tax | 45.8% | 40% | LU +5.8 pp |
| Corporate Tax | 23.9% | 30% | MW +6.1 pp |
| VAT | 17% | 17.5% | MW +0.5 pp |
| Capital Gains Tax | 0% | 40% | MW +40 pplargest gap |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 45.8% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Malawi | 40% | Source: Taxation (Amendment) (No. 2) Act, 2025 (Malawi Revenue Authority) · as of 2025-12-30 |
| Difference | +5.8 pp | Luxembourg higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 23.9% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Malawi | 30% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −6.1 pp | Malawi higher |
Between the two, Malawi's corporate tax rate (30%) tops Luxembourg's (23.9%) by 6.1pp. The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Malawi | 17.5% | Source: EY Worldwide VAT, GST and Sales Tax Guide 2026 — Malawi · as of 2026-01-01 |
| Difference | −0.5 pp | Malawi higher |
Between the two, Malawi's VAT rate (17.5%) tops Luxembourg's (17%) by 0.5pp. The 181-country average is 15%: both sit above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Malawi | 40% | Source: EY Worldwide Personal Tax and Immigration Guide 2025-26 — Malawi · as of 2025-10-01 |
| Difference | −40 pp | Malawi higher |
Between the two, Malawi's capital gains tax rate (40%) tops Luxembourg's (0%) by 40pp. The 175-country average is 10.3%: Luxembourg sits below it, Malawi sits above it. Luxembourg's figure is dated 2026-01-13 and Malawi's 2025-10-01, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Malawi | 0% | Source: Malawi Legal Information Institute — Taxation Act (Chapter 41:01) · as of 2026-07-18 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Luxembourg and Malawi both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.