🇱🇺 Retire in Luxembourg

Tax rates, cost of living, special programs, and top cities for international investors and retirees.

Tax system

worldwide

Cheapest city

Luxembourg City ~$2,945/mo

Tax System Overview

Luxembourg exempts CG on securities held >6 months. Short-term gains: half taxed at marginal rates. Dividends at 15%, interest at 20%. No wealth tax for individuals. Very favorable for long-term FIRE investors.

  • No wealth tax

What Would You Pay?

Estimated annual tax on different levels of investment income (capital gains + dividends + interest):

Annual Investment IncomeEstimated TaxEffective Rate
$50,000$3,3756.8%
$100,000$6,7506.8%
$200,000$13,5006.8%

Assumes 60% capital gains, 25% dividends, 15% interest. Actual tax depends on your specific income mix.

Sources — Luxembourg tax data

Last verified 2026-04-12

Top Cities in Luxembourg

Tax rates and programs are subject to change. Information is current as of 2026. Always consult a qualified tax professional before making relocation decisions.