Exemptions Health, education and financial service
Posted: Sat Jan 18, 2025 4:54 am
Taxation of individuals or natural persons in Luxembourg
Individual taxation in Luxembourg uses a progressive system, which means that taxes are adjusted according to the level of income you earn. In this way, the government guarantees a fair redistribution of wealth.
The tax system imposes direct taxes on personal algeria phone number library profits and capital, and indirect taxes on the consumption of goods and services. Groups of individuals or natural persons include anyone employed or self-employed, freelancers, digital nomads, students or people who decide to live in the country for a period of time (such as retirees). Let's first see what the main taxes are:
Income tax
Intermediate Specific products and services, such as fuel and the sale of alcoholic beverages in bars or restaurants. Buying a bottle of wine in a restaurant for € (US$) will be taxed at the intermediate rate of , and the VAT will be € (US$).
Reduced Goods and services considered to be of public interest: catering services, water supply or cultural products. Dinner in a restaurant for € (US$) will be taxed at a discounted rate of , and the VAT will be € (US$).
Super Reduced Basic products and services: food, printed books, medicines and certain electronic publications. Buying books for € (US$) will be taxed at the super-reduced rate of , and the VAT will be € (US$).
Luxembourg personal VAT rates.
Property tax
This tax in Luxembourg is managed by local town councils. It applies to everyone's real estate: residences, houses, land and buildings. Its calculation depends on the cadastral value, an official estimate determined by local authorities and one of the most important revenues received by local governments. Compared to other European countries, especially in rural areas, the tax is low. We explain what their rates are.
Individual taxation in Luxembourg uses a progressive system, which means that taxes are adjusted according to the level of income you earn. In this way, the government guarantees a fair redistribution of wealth.
The tax system imposes direct taxes on personal algeria phone number library profits and capital, and indirect taxes on the consumption of goods and services. Groups of individuals or natural persons include anyone employed or self-employed, freelancers, digital nomads, students or people who decide to live in the country for a period of time (such as retirees). Let's first see what the main taxes are:
Income tax
Intermediate Specific products and services, such as fuel and the sale of alcoholic beverages in bars or restaurants. Buying a bottle of wine in a restaurant for € (US$) will be taxed at the intermediate rate of , and the VAT will be € (US$).
Reduced Goods and services considered to be of public interest: catering services, water supply or cultural products. Dinner in a restaurant for € (US$) will be taxed at a discounted rate of , and the VAT will be € (US$).
Super Reduced Basic products and services: food, printed books, medicines and certain electronic publications. Buying books for € (US$) will be taxed at the super-reduced rate of , and the VAT will be € (US$).
Luxembourg personal VAT rates.
Property tax
This tax in Luxembourg is managed by local town councils. It applies to everyone's real estate: residences, houses, land and buildings. Its calculation depends on the cadastral value, an official estimate determined by local authorities and one of the most important revenues received by local governments. Compared to other European countries, especially in rural areas, the tax is low. We explain what their rates are.