Taxes · LUX
Taxes in Luxembourg
In Luxembourg, individual crypto holders generally pay no capital gains tax on disposals if assets are held for more than 6 months and activity is non-speculative. Short-term gains held under 6 months are taxed at progressive rates up to 42%. Mining and staking income is treated as taxable income, and VAT does not apply to crypto-to-fiat exchanges under EU rules.
The tax figures
Tax wedge
40.16 %
Of every €100 an employer spends on an average single worker, about €40 goes to tax and social contributions before pay-out.
22 of 36 countries that publish it · 2025 · see the ranking →
What this measures, and what it does not
The OECD tax wedge: income tax plus employee AND employer social contributions as a share of total labour cost, for a single person at exactly the average wage. It is a comparable type case between countries — not your personal tax rate.
Tax on pay
31.99 %
Of every $100 of gross pay at the average wage in Luxembourg, about $32 goes to income tax and employee social contributions.
30 of 37 countries that publish it · 2025 · see the ranking →
What this measures, and what it does not
The OECD net personal average tax rate: income tax plus the EMPLOYEE’s social contributions as a share of gross wage earnings, for a single person with no children at exactly the average wage. This is the rate you can apply to a salary. It is deliberately smaller than the tax wedge on the same page, which measures a wider bite (it adds the employer’s contributions) over a wider base (total labour cost) — two honest answers to two different questions.
Take-home pay
$67,008 PPP
The average job in Luxembourg pays about $67,008 a year (PPP) after income tax and the employee's social contributions.
2 of 37 countries that publish it · 2025 · see the ranking →
What this measures, and what it does not
Our own calculation: the OECD average annual wage multiplied by (1 − the OECD net personal average tax rate). Both legs share the same denominator — gross wage earnings — which is what makes the multiplication valid; the tax wedge, which is measured against total labour cost including the employer’s contributions, cannot be used this way. It is a comparable type case for a single average earner: not your salary, and not a full net-income figure, since it excludes benefits, deductions and consumption taxes.
Top income tax
45.78 %
19 of 37 countries that publish it · 2025 · see the ranking →
What this measures, and what it does not
The top statutory rate on wage income — what the last euro of a very high salary is taxed at, combining central and typical sub-central rates (OECD). Almost nobody pays this on their whole income: it applies only above the top threshold.
Corporate tax
17.12 %
27 of 96 countries that publish it · 2026 · see the ranking →
What this measures, and what it does not
The statutory (headline) corporate income tax rate from OECD Corporate Tax Statistics. Effective rates after deductions and incentives are typically lower; this is the rate on paper that companies plan around.
The rules, in words
Income tax
Mining and staking rewards received as income are subject to Luxembourg progressive income tax rates ranging from 0% to 42%, depending on total income. Crypto received as payment for services or employment is taxed as ordinary income at the same progressive rates.
VAT / GST
Exempt. Following the EU Court of Justice ruling in Hedqvist (C-264/14), exchanging cryptocurrency for fiat currency and vice versa is VAT-exempt in Luxembourg as in all EU member states.
Capital gains
Generally tax-free for individual holders if crypto is held as private wealth and not part of a speculative or professional activity. Gains on assets held over 6 months are typically exempt. Short-term gains (under 6 months) may be taxed at progressive income tax rates up to 42%.
Type case, not tax advice: figures describe a single average earner and standard rates; your situation depends on residency, deductions and local rules. Verify with the tax authority before acting. — Fiatmap