Bermuda vs Luxembourg
Corporate Tax Comparison
Time of Update: Bermuda: 3/24/2026 / Luxembourg: 4/05/2026
Compare Bermuda and Luxembourg corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Bermuda vs Luxembourg Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Bermuda
Luxembourg
General CIT Rate:
15% (if subject to Bermuda CIT) or 0%.
General CIT Rate:
23.87% (CIT, solidarity surtax, and municipal business tax [Luxembourg City, from tax year 2025])
CIT Return Due Date:
If subject to Bermuda CIT, tax returns are proposed to be due by the 15th day of the 10th month following the fiscal year-end.
CIT Return Due Date:
December 31 of the following year.
CIT Payment Due Date:
Upon filing the CIT return (if applicable), a 'true-up' payment considering previous estimated payments must be made no later than the due date of the return, regardless of when the return is filed.
CIT Payment Due Date:
At the end of the month following the receipt of the tax assessment receipt.
CIT Estimated Payment Due Date:
Taxes are paid in instalments.
The first instalment is proposed to be due by the 15th day of the 8th month after the beginning of the fiscal year, amounting to 50% of the expected tax liability for the year.
The second instalment is due by the 15th day of the 12th month after the beginning of the fiscal year, bringing the total instalments to 90% of the expected tax liability for the year.
The first instalment is proposed to be due by the 15th day of the 8th month after the beginning of the fiscal year, amounting to 50% of the expected tax liability for the year.
The second instalment is due by the 15th day of the 12th month after the beginning of the fiscal year, bringing the total instalments to 90% of the expected tax liability for the year.
CIT Estimated Payment Due Date:
Quarterly installment payment.
Withholding Tax (WHT)
Bermuda
Luxembourg
Resident Withholding Tax (Dividend/Interest/Royalty):
0
Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/0/0
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Bermuda
Luxembourg
General Capital Gain Tax Rate:
There is no VAT or sales tax in Bermuda.
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income tax rate constraint.
Effective Tax Rate (ETR)
Bermuda
Luxembourg
Composite Effective Average Tax Rate:
0
Composite Effective Average Tax Rate:
23.24%
Composite Effective Marginal Tax Rate:
0
Composite Effective Marginal Tax Rate:
18.09%
