Germany vs Luxembourg
Corporate Tax Comparison
Time of Update: Germany: 4/02/2026 / Luxembourg: 4/05/2026
Compare Germany and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Germany vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Germany
Luxembourg
General CIT Rate:
Corporate income tax is 15%, plus a 5.5% solidarity surcharge on the corporate income tax, resulting in a combined rate of 15.825%. Trade tax applies separately and generally ranges from 8.75% to 20.3% depending on the municipality. According to legislative changes adopted in 2025, the corporation tax rate is planned to decrease to 14% in 2028, 13% in 2029, 12% in 2030, 11% in 2031, and 10% from 2032 onward, with the solidarity surcharge continuing to apply.
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
July 31st (or extended to the end of February of the following year if the taxpayer instructs a professional tax advisor).
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
As stated in the assessment notice.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
Quarterly installment payments are due on the 10th day of March, June, September, and December.
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
Germany
Luxembourg
Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/0
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/0/15
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Germany
Luxembourg
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate tax rate.
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
Effective Tax Rate (ETR)
Germany
Luxembourg
Composite Effective Average Tax Rate:
26.59
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
11.00
Composite Effective Marginal Tax Rate:
18.09%
