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Luxembourg vs Paraguay: tax rates compared
Luxembourg's income tax rate is 35.8pp higher than Paraguay's (45.8% vs 10%). The 200-country average is 28%: Luxembourg sits above it, Paraguay sits below it. Luxembourg's figure is dated 2025-01-01 and Paraguay's 2026-02-07, 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 | PY | Difference |
|---|---|---|---|
| Income Tax | 45.8% | 10% | LU +35.8 pplargest gap |
| Corporate Tax | 23.9% | 10% | LU +13.9 pp |
| VAT | 17% | 10% | LU +7 pp |
| Capital Gains Tax | 0% | 8% | PY +8 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 |
| Paraguay | 10% | Source: PWC Worldwide Tax Summaries — Paraguay (Individual, Taxes on personal income) · as of 2026-02-07 |
| Difference | +35.8 pp | Luxembourg higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 23.9% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Paraguay | 10% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +13.9 pp | Luxembourg higher |
Luxembourg's corporate tax rate is 13.9pp higher than Paraguay's (23.9% vs 10%). The 201-country average is 22.6%: Luxembourg sits above it, Paraguay sits below it.
VAT
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Paraguay | 10% | Source: PWC Worldwide Tax Summaries — Paraguay (Corporate, Other taxes) · as of 2026-02-07 |
| Difference | +7 pp | Luxembourg higher |
Luxembourg's VAT rate is 7pp higher than Paraguay's (17% vs 10%). The 181-country average is 15%: Luxembourg sits above it, Paraguay sits below it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Paraguay | 8% | Source: PWC Worldwide Tax Summaries — Paraguay (Individual, Taxes on personal income) · as of 2026-02-07 |
| Difference | −8 pp | Paraguay higher |
Paraguay's capital gains tax rate is 8pp higher than Luxembourg's (8% vs 0%). The 175-country average is 10.3%: both sit below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Paraguay | 0% | Source: PWC Worldwide Tax Summaries — Paraguay (Net wealth/worth tax rates) · as of 2026-02-07 |
| Difference | 0 pp | displayed rates match |
Luxembourg's wealth tax rate is identical to Paraguay's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.