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Luxembourg vs Nicaragua: tax rates compared
Luxembourg's income tax rate is 15.8pp higher than Nicaragua's (45.8% vs 30%). The 200-country average is 28%: both sit above it. Luxembourg's figure is dated 2025-01-01 and Nicaragua's 2026-01-12, so the two rates come from different data vintages.
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 | NI | Difference |
|---|---|---|---|
| Income Tax | 45.8% | 30% | LU +15.8 pplargest gap |
| Corporate Tax | 23.9% | 30% | NI +6.1 pp |
| VAT | 17% | 15% | LU +2 pp |
| Capital Gains Tax | 0% | 15% | NI +15 pp |
| 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 |
| Nicaragua | 30% | Source: PWC Worldwide Tax Summaries — Nicaragua (Individual, Taxes on personal income) · as of 2026-01-12 |
| Difference | +15.8 pp | Luxembourg higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 23.9% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Nicaragua | 30% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −6.1 pp | Nicaragua higher |
Nicaragua's corporate tax rate is 6.1pp higher than Luxembourg's (30% vs 23.9%). 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 |
| Nicaragua | 15% | Source: PWC Worldwide Tax Summaries — Nicaragua (Corporate, Other taxes) · as of 2026-01-12 |
| Difference | +2 pp | Luxembourg higher |
Luxembourg's VAT rate is 2pp higher than Nicaragua's (17% vs 15%). The 181-country average is 15%: Luxembourg sits above it, Nicaragua matches the world average.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Nicaragua | 15% | Source: EY Worldwide Personal Tax and Immigration Guide 2025-26 — Nicaragua · as of 2025-10-01 |
| Difference | −15 pp | Nicaragua higher |
Nicaragua's capital gains tax rate is 15pp higher than Luxembourg's (15% vs 0%). The 175-country average is 10.3%: Luxembourg sits below it, Nicaragua sits above it. Luxembourg's figure is dated 2026-01-13 and Nicaragua'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 |
| Nicaragua | 0% | Source: PWC Worldwide Tax Summaries — Nicaragua (Individual, Other taxes) · as of 2026-01-12 |
| Difference | 0 pp | displayed rates match |
Luxembourg's wealth tax rate is identical to Nicaragua's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.