Country tax profile · 2026
Luxembourg corporate tax
How Luxembourg taxes corporate
The standard corporate profits tax in Luxembourg is 16%. CIT cut from 17% to 16% for 2025 (14% for taxable income under EUR 175,000). Aggregate rate in Luxembourg City ~23.87% including 7% solidarity surcharge on CIT and 6.75% municipal business tax.
Compiled by MyNomadWorld for Luxembourg and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.
How Luxembourg's corporate tax compares
Luxembourg's corporate tax of 16% is the 136th highest of the 180 countries we track, against a global average of 21.2% and a Europe average of 17%.
Countries with a similar corporate tax
Romania (16%) · Hong Kong (16.5%) · Cyprus (15%) · Georgia (15%) · Singapore (17%) · Montenegro (15%)
Who is a tax resident of Luxembourg?
Domicile or habitual abode (customary residence) in Luxembourg, generally presence over 6 months (worldwide taxation).
Related Luxembourg taxes
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What is the corporate tax rate in Luxembourg?
The standard corporate profits tax in Luxembourg is 16%. CIT cut from 17% to 16% for 2025 (14% for taxable income under EUR 175,000). Aggregate rate in Luxembourg City ~23.87% including 7% solidarity surcharge on CIT and 6.75% municipal business tax.