Luxembourg Capital Gains Tax
Detailed capital gains tax rates and rules for Luxembourg in 2026.
Capital GainsEUR
Capital gains on movable property held for less than 6 months are taxed at full progressive rates. Gains on assets held for more than 6 months benefit from the half-rate mechanism (demi-taux global), which effectively halves the tax rate. Gains on securities are taxed at the half-rate if the individual held more than 10% of the company at any time in the 5 years preceding the sale. Real property gains are subject to a quarter-rate after 2 years.
Standard Rate
21%
Exemptions
- Principal residence exemption after 2 years of occupation
- Participation exemption for qualifying corporate shareholdings
- Half-rate (demi-taux global) applies to gains on assets held for more than 6 months
- €50,000 exemption per person on real estate gains (under certain conditions)
How Luxembourg Capital Gains compares
Luxembourg’s capital gains tax rate of 21% is the 42nd highest of 203 countries TaxAtlas tracks, above the global average of 13.8% and Europe’s regional average of 17.8%.
Luxembourg
21%
Europe average
17.8%
Global average
13.8%
