London, United Kingdom
Head to head

London vs Luxembourg.

Income tax on $1M lands within $4K in London and Luxembourg, so a sale decides it: Luxembourg taxes a resident's capital gain at 0% and London at 24%. 🇬🇧 United Kingdom against 🇱🇺 Luxembourg, compared on tax, residence, cost and the life.

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In short, current to October 2026

  • On $1,000,000 of income, London takes an effective 43% and Luxembourg takes 44%, so London leaves about $4K more in hand each year on the Patrician.ch 2026 model.
  • On a capital gain realized after residence begins, London charges 24% and Luxembourg charges 0%. On a $5,000,000 event that is a difference of about $1.2M.
  • The United Kingdom operates a special regime for arriving foreigners: 4 year foreign income and gains regime for new arrivals. Luxembourg is modeled with none.
  • Inheritance, what a child pays: 40% in London, nothing on the statutory share in Luxembourg.
  • Route in: London by Founder & talent. Luxembourg by Residence by investment, Founder & talent.
  • Cost of the life is 96 in London against 88 in Luxembourg on the Patrician.ch index where Zurich is 100, and safety 6 against 9 of 10. Both are Patrician.ch editorial indices scored by us, not published statistics.

Source: the Patrician.ch board, an original ranking of 100 residence addresses across 47 countries and territories. Tax rates, thresholds and routes are sourced. Cost, safety, schools, sun and beauty are Patrician.ch editorial indices. Figures current to October 2026. Updated . Cite as: Patrician.ch, London vs Luxembourg: tax, residence and cost 2026, patrician.ch/compare/london-vs-luxembourg/, October 2026.

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By the Patrician.ch research desk · Updated 29 October 2026 · 7 min read
London, United Kingdom
London 🇬🇧 United Kingdom
Luxembourg
Luxembourg 🇱🇺 Luxembourg
LondonLuxembourg
Effective tax at $300K39%38%
Effective tax at $1M43%44%
Effective tax at $3M44%45%
Kept after tax at $1M$568K$565K
Capital gains24%0%
Inheritance tax, children40%nothing on the statutory share
Cost index (Zurich 100)9688
A 200 m² prime home, US$$6.1M$2.8M
Prestige of address (editorial)10/106/10
Safety6/109/10
Schools10/109/10
Sun hours1,6301,800
Supercar street index#12#47
Routes inFounder & talentResidence by investment, Founder & talent
Net millionaire flow, 2025 forecast (country, Henley)−16,500n/a
Flight from LondonHome1h 20m nonstop
Flight from New York7h 05m nonstop7h 55m nonstop
See these 2 places for your own income.London and Luxembourg, side by side on your income, passports and family. Free, in the ranking of all 100. Then the Dossier: a written report in 10 chapters on the 3 places that rank first for you. The Dossier is $500. The founding price, $250, holds until 31 October.
Compare them on my income →

Head to head

Effective income tax rate, % of income, at 3 incomes

$300K$1M$3MLondon39%43%44%Luxembourg38%44%45%

Note: single filer, not a US citizen

Source: Patrician.ch 2026 tax model, built on official tax authority rates

Simplified marginal model, indicative 2026 brackets, non-US single filer, no social contributions, deductions, wealth taxes, or treaties. Inheritance is shown as it falls on a child, current to October 2026.

By profile

How each profile reads.

For an executive on salary

London keeps more of a $1M salary, $4K a year on this model. Luxembourg answers with safety.

For a founder with an exit

Capital gains: London 24%, Luxembourg 0%. Neither city levies an annual wealth tax.

For a family

London leads on schools, Luxembourg on safety, a lower cost and sun.

London, United KingdomLondonThe full pageLuxembourgLuxembourgThe full pageRank both on my numbersThe engine, 90 seconds
Questions

Which keeps more of a $1M income, London or Luxembourg?

London, by about $4K a year on Patrician.ch's 2026 model.

London takes an effective 43% of $1,000,000 and Luxembourg takes 44%. At $3,000,000 the rates are 44% and 45%.

Which taxes capital gains less, London or Luxembourg?

Luxembourg, at 0% against 24% in London.

On a $5,000,000 liquidity event realized after residence begins, the difference is about $1.2M.

Which is better for inheritance, London or Luxembourg?

Luxembourg. What a child pays: 40% in London, nothing on the statutory share in Luxembourg.

The UK taxes an estate at 40% above £325,000, with a further band for a home left to children. A spouse inherits free. Since April 2025 exposure follows 10 of the last 20 years of residence. Luxembourg exempts children, and a spouse with common children, on what they inherit within the statutory share.

Which is cheaper to live in, London or Luxembourg?

Luxembourg, at 88 on the Patrician.ch cost index against 96 for London, where Zurich is 100.

Safety scores 6 of 10 in London and 9 of 10 in Luxembourg, schools 10 and 9. These are Patrician.ch editorial indices, not published statistics.

The Dossier: London, Luxembourg, and the third you have not considered.A written report on the 3 places that rank first for you, on your income, a sale, your passports and your family. 10 chapters, written the moment you pay. Every tax figure carries its official source and the date it was last checked. The Dossier is $500. The founding price, $250, holds until 31 October. Refunded in full within 7 days of delivery, no reason needed.
Read chapters 1 to 3, free →
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The income tax of London and Luxembourg, side by side on 2026 rates. Your readers type their own salary and the places reorder. Free on any site, with the credit line under it.

<iframe src="https://patrician.ch/embed/compare/?c=lon,lux&inc=1000000" title="Income tax in London and Luxembourg, Patrician.ch" width="100%" height="900" style="border:0;max-width:760px;display:block;color-scheme:normal" loading="lazy"></iframe>
<p style="margin:6px 0 0;font-size:.875em;line-height:1.4">Research by <a href="https://patrician.ch/compare/london-vs-luxembourg/">Patrician.ch</a></p>

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Income tax on the published 2026 rules. Social contributions, most deductions and treaties are not modeled. Figures are for a non-US single filer. Wealth tax, an exit and your passports are added when you run the engine on your own numbers. Not advice. Residence rules change often. Verify before acting.

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