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Turkey vs Luxembourg Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
Turkey40%Lower
Luxembourg42%
Corporate Tax
Turkey25%
Luxembourg23.9%Lower
Capital Gains
Turkey40%
Luxembourg21%Lower
VAT / Sales Tax
Turkey20%
Luxembourg17%Lower
| Category | Turkey | Luxembourg |
|---|---|---|
| Tax System | Progressive | Progressive |
| Top Income Tax | 40% | 42% |
| Corporate Tax | 25% | 23.9% |
| Capital Gains | 40% | 21% |
| VAT / Sales Tax | 20% | 17% |
| Crypto Tax | No | Yes |
| Wealth Tax | No | No |
| Tax Treaties | 87 | 85 |
| Currency | TRY | EUR |
The bottom line: Turkey vs Luxembourg
Luxembourg has the lower headline rate on 3 of the four main taxes (income, corporate, capital gains and VAT), making it the lighter-taxed of the two on paper. Turkey runs a progressive tax system, while Luxembourg uses a progressive one. On crypto, Turkey is the more favourable — it does not tax cryptocurrency gains. Turkey has the wider tax-treaty network (87 agreements), which can reduce withholding tax on cross-border income.
- Income tax: Turkey is lower (40% vs 42%)
- Corporate tax: Luxembourg is lower (25% vs 23.9%)
- Capital gains tax: Luxembourg is lower (40% vs 21%)
- VAT / sales tax: Luxembourg is lower (20% vs 17%)