What is the capital gains tax rate on index funds in Luxembourg?

The headline capital gains tax rate in Luxembourg is 0%. No capital gains tax for private investors. Allowances, holding periods and tax-advantaged accounts can change what you actually pay.

How much tax would I pay on a $100,000.00 gain in Luxembourg?

At the headline rate of 0%, a $100,000.00 gain would not attract capital gains tax in Luxembourg. Other taxes such as wealth or dividend taxes may still apply.

How does Luxembourg compare with the rest of EU?

The average headline capital gains rate across EU in our dataset is 21.5%, so Luxembourg at 0% is below the regional average.

Index Fund Taxes in Luxembourg

Investors in Luxembourg face a headline capital gains rate of 0% on index funds and ETFs. No capital gains tax for private investors.

Headline rate: 0%
Tax on a $100,000.00 gain: $0.00
EU average: 21.5%

What this means for your returns

Tax applies to your gain, not your whole balance. If you invest and your portfolio grows by $100,000.00, a 0% rate leaves you with $100,000.00 of that growth before allowances.

Because the tax is usually triggered when you sell, holding for longer defers it and lets the untaxed amount keep compounding. That deferral is one of the structural advantages of buy-and-hold index investing over frequent trading.

Run your own projection with Luxembourg tax applied →

How Luxembourg compares in EU

Capital gains tax rates across EU
Country	Capital gains rate
Belgium	0%
Bulgaria	10%
Romania	10%
Croatia	12%
Czech Republic	15%
Greece	15%
Hungary	15%
Lithuania	15%

Frequently Asked Questions

Headline statutory rates as of 2025-01-01, collected from national tax authority publications. Rates exclude allowances, exemptions, tax-advantaged accounts, local surcharges and treaty relief, and change frequently. Confirm your position with a tax professional in Luxembourg.