LU · EuropeCH · Europe

Luxembourg vs Switzerland: tax rates compared

Between the two, Luxembourg's income tax rate (45.8%) tops Switzerland's (41.4%) by 4.4pp. The 200-country average is 28%: both sit above it.

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

0102030405060Income41.4%45.8%Corporate19.6%23.9%VAT8.1%17%Capital Gains0%Crypto0%Wealth Tax0%0.9%
six shared taxes, side by side
Tax LU CHDifference
Income Tax45.8%41.4%LU +4.4 pp
Corporate Tax23.9%19.6%LU +4.3 pp
VAT17%8.1%LU +8.9 pplargest gap
Capital Gains Tax0%0%match
Crypto Tax0%0%match
Wealth Tax0%0.9%CH +0.9 pp

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
Switzerland41.4%Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01
Difference+4.4 ppLuxembourg higher

Corporate Tax

Corporate Tax, side by side
CountryRateSource
Luxembourg23.9%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Switzerland19.6%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Difference+4.3 ppLuxembourg higher

Between the two, Luxembourg's corporate tax rate (23.9%) tops Switzerland's (19.6%) by 4.3pp. The 201-country average is 22.6%: Luxembourg sits above it, Switzerland sits below it.

VAT

VAT, side by side
CountryRateSource
Luxembourg17%Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13
Switzerland8.1%Source: PWC Worldwide Tax Summaries — Switzerland (Corporate, Other taxes) · as of 2026-07-01
Difference+8.9 ppLuxembourg higher

Between the two, Luxembourg's VAT rate (17%) tops Switzerland's (8.1%) by 8.9pp. The 181-country average is 15%: Luxembourg sits above it, Switzerland sits below 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
Switzerland0%Source: PWC Worldwide Tax Summaries — Switzerland (Individual, Income determination) · as of 2026-07-01
Difference0 ppdisplayed rates match

There's no gap here — Luxembourg and Switzerland 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 Switzerland both post a crypto tax rate of 0%. The 88-country average is 13%: both sit below it. Luxembourg's figure is dated 2018-07-26 and Switzerland's 2026-07-06, so the two rates come from different data vintages.

Wealth Tax

Wealth Tax, side by side
CountryRateSource
Luxembourg0%Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13
Switzerland0.9%Source: République et Canton de Genève, Administration fiscale cantonale — Barèmes 2025 pour les impôts sur le revenu et la fortune · as of 2025-01-01
Difference−0.9 ppSwitzerland higher

Between the two, Switzerland's wealth tax rate (0.9%) tops Luxembourg's (0%) by 0.9pp. The 193-country average is 0.1%: Luxembourg sits below it, Switzerland sits above it. Luxembourg's figure is dated 2026-01-13 and Switzerland's 2025-01-01, so the two rates come from different data vintages.