🇱🇺 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 Income | Estimated Tax | Effective Rate |
|---|---|---|
| $50,000 | $3,375 | 6.8% |
| $100,000 | $6,750 | 6.8% |
| $200,000 | $13,500 | 6.8% |
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
- Grounded: grantthornton.globalaccessed 2026-04-12
- Grounded: bdo.globalaccessed 2026-04-12
Top Cities in Luxembourg
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Tax rates and programs are subject to change. Information is current as of 2026. Always consult a qualified tax professional before making relocation decisions.