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Saudi Arabia vs Luxembourg Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
Saudi Arabia0%Lower
Luxembourg42%
Corporate Tax
Saudi Arabia20%Lower
Luxembourg23.9%
Capital Gains
Saudi Arabia20%Lower
Luxembourg21%
VAT / Sales Tax
Saudi Arabia15%Lower
Luxembourg17%
| Category | Saudi Arabia | Luxembourg |
|---|---|---|
| Tax System | Territorial (No personal income tax) | Progressive |
| Top Income Tax | 0% | 42% |
| Corporate Tax | 20% | 23.9% |
| Capital Gains | 20% | 21% |
| VAT / Sales Tax | 15% | 17% |
| Crypto Tax | No | Yes |
| Wealth Tax | Yes | No |
| Tax Treaties | 40 | 85 |
| Currency | SAR | EUR |
The bottom line: Saudi Arabia vs Luxembourg
Saudi Arabia has the lower headline rate on 4 of the four main taxes (income, corporate, capital gains and VAT), making it the lighter-taxed of the two on paper. Saudi Arabia runs a territorial (no personal income tax) tax system, while Luxembourg uses a progressive one. On crypto, Saudi Arabia is the more favourable — it does not tax cryptocurrency gains. Luxembourg has the wider tax-treaty network (85 agreements), which can reduce withholding tax on cross-border income.
- Income tax: Saudi Arabia is lower (0% vs 42%)
- Corporate tax: Saudi Arabia is lower (20% vs 23.9%)
- Capital gains tax: Saudi Arabia is lower (20% vs 21%)
- VAT / sales tax: Saudi Arabia is lower (15% vs 17%)