Cyprus vs Luxembourg
Corporate Tax Comparison
Time of Update: Cyprus: 4/05/2026 / Luxembourg: 4/05/2026
Compare Cyprus and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Cyprus vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Cyprus
Luxembourg
General CIT Rate:
12.5
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
Tax due on March 31 of the second year after the calendar year.
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
The relevant tax is due on August 1 of the year following the calendar year.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
Payment in installments of equal amounts on July 31 and December 31 of the relevant tax/calendar year.
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
Cyprus
Luxembourg
Resident Withholding Tax (Dividend/Interest/Royalty):
0/17/0
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/10
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Cyprus
Luxembourg
General Capital Gain Tax Rate:
20
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
Effective Tax Rate (ETR)
Cyprus
Luxembourg
Composite Effective Average Tax Rate:
11.4%
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
5.92%
Composite Effective Marginal Tax Rate:
18.09%
