LU · EuropeMT · Europe

Luxembourg vs Malta: tax rates compared

Between the two, Luxembourg's income tax rate (45.8%) tops Malta's (35%) by 10.8pp. The 200-country average is 28%: both sit above it. Luxembourg's figure is dated 2025-01-01 and Malta's 2026-01-01, so the two rates come from different data vintages.

Verified data covers six of the six tracked tax types for both countries; every rate below is cited to its source and dated.

At a glance

0102030405060Income35%45.8%Corporate23.9%35%VAT17%18%Capital Gains0%Crypto0%Wealth Tax0%
six shared taxes, side by side
Tax LU MTDifference
Income Tax45.8%35%LU +10.8 pp
Corporate Tax23.9%35%MT +11.1 pplargest gap
VAT17%18%MT +1 pp
Capital Gains Tax0%0%match
Crypto Tax0%0%match
Wealth Tax0%0%match

Income Tax

Income Tax, side by side
CountryRateSource
Luxembourg45.8%Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01
Malta35%Source: PWC Worldwide Tax Summaries — Malta (Individual, Taxes on personal income) · as of 2026-01-01
Difference+10.8 ppLuxembourg higher

Corporate Tax

Corporate Tax, side by side
CountryRateSource
Luxembourg23.9%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Malta35%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Difference−11.1 ppMalta higher

Between the two, Malta's corporate tax rate (35%) tops Luxembourg's (23.9%) by 11.1pp. The 201-country average is 22.6%: both sit above it.

VAT

VAT, side by side
CountryRateSource
Luxembourg17%Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13
Malta18%Source: PWC Worldwide Tax Summaries — Malta (Corporate, Other taxes) · as of 2026-02-19
Difference−1 ppMalta higher

Between the two, Malta's VAT rate (18%) tops Luxembourg's (17%) by 1pp. The 181-country average is 15%: both sit above it.

Capital Gains Tax

Capital Gains Tax, side by side
CountryRateSource
Luxembourg0%Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13
Malta0%Source: PwC Worldwide Tax Summaries — Malta (Individual, Income determination) · as of 2026-02-19
Difference0 ppdisplayed rates match

There's no gap here — Luxembourg and Malta both post a capital gains tax rate of 0%. The 175-country average is 10.3%: both sit below it.

Crypto Tax

There's no gap here — Luxembourg and Malta both post a crypto tax rate of 0%. The 88-country average is 13%: both sit below it.

Wealth Tax

Wealth Tax, side by side
CountryRateSource
Luxembourg0%Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13
Malta0%Source: PWC Worldwide Tax Summaries — Net wealth/worth tax rates (quick chart) · as of 2026-02-19
Difference0 ppdisplayed rates match

There's no gap here — Luxembourg and Malta both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it.