Luxembourg vs Madrid: tax, residence and cost 2026

Luxembourg vs Madrid.

🇱🇺 Luxembourg against 🇪🇸 Spain, on tax, residence, cost, and the life. Same model, same year, no brochure.

In short, current to September 2026

On $1,000,000 of income, Luxembourg takes an effective 44% and Madrid takes 43%, so Madrid leaves about $2K more in hand each year on the Patrician.ch 2026 model.
On a capital gain realized after residence begins, Luxembourg charges 21% and Madrid charges 28%. On a $5,000,000 event that is a difference of about $350K.
Luxembourg operates no special regime for arriving foreigners. Spain operates: Beckham law: 24% flat on Spanish employment income up to €600K for 6 years for inbound hires and remote workers, and Madrid waives the regional wealth tax, though the national solidarity tax applies above €3M.
Inheritance, what a child pays: nothing on the statutory share in Luxembourg, 99% relief in Madrid.
Route in: Luxembourg by Residence by investment, Founder & talent. Madrid by Remote work visa, Founder & talent.
Cost of the life is 88 in Luxembourg against 70 in Madrid on the Patrician.ch index where Zurich is 100, and safety 9 against 8 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 September 2026. Updated 27 September 2026. Cite as: Patrician.ch, Luxembourg vs Madrid: tax, residence and cost 2026, patrician.ch/compare/lux-vs-mad/, September 2026.

	Luxembourg	Madrid
Effective tax at $300K	38%	40%
Effective tax at $1M	44%	43%
Effective tax at $3M	45%	44%
Kept at $1M	$564K	$566K
Capital gains	21%	28%
Inheritance tax, children	nothing on the statutory share	99% relief
Cost index (Zurich 100)	88	70
Safety	9/10	8/10
Schools	9/10	8/10
Sun hours	1,600	2,770
Supercar street index	#48	#35
Routes in	Residence by investment, Founder & talent	Remote work visa, Founder & talent
Net millionaire flow, 2025 forecast (country, Henley)	n/a	−500
Flight London	1.7	2.6
Flight New York	8.4	8

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 September 2026.

By profile

How each profile reads.

For an executive on salary

Madrid keeps more of a $1M salary, $2K a year on this model. Luxembourg answers with schools and safety.

For a founder with an exit

Capital gains: Luxembourg 21%, Madrid 28%. Neither city taxes wealth as such.

For a family

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

Luxembourg The full page Madrid The full page Rank both on my numbers The engine, 90 seconds

Questions

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

Madrid, by about $2K a year on Patrician.ch's 2026 model.

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

Which taxes capital gains less, Luxembourg or Madrid?

Luxembourg, at 21% against 28% in Madrid.

On a $5,000,000 liquidity event realized after residence begins, the difference is about $350K.

Which is better for inheritance, Luxembourg or Madrid?

Neither charges a spouse or children. Both exempt close family.

Luxembourg exempts children, and a spouse with common children, on what they inherit within the statutory share. Madrid gives a spouse and children 99% relief on the tax, with no cap.

Which is cheaper to live in, Luxembourg or Madrid?

Madrid, at 70 on the Patrician.ch cost index against 88 for Luxembourg, where Zurich is 100.

Safety scores 9 of 10 in Luxembourg and 8 of 10 in Madrid, schools 9 and 8. These are Patrician.ch editorial indices, not published statistics.

The Dossier: Luxembourg, Madrid, and the third you have not considered. Your top 3 modeled on your income, exit, passports, and family. 10 chapters, written the moment you pay, usually ready within minutes. The Dossier is $500. The founding price, $250, holds until 30 September. Refunded within 7 days if it does not change how you think.

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This page is the general case. Your income and passports rank all 100 differently.

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The general case, ranked: Where should high earners live in 2026 · Best country to live in if you are rich · Best countries for high earners after tax · Europe · United States · Americans moving abroad · Tax calculator · Keep Index 2026

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Tax figures use a simplified marginal model with indicative 2026 brackets for a non-US single filer, ignore social contributions, most deductions, wealth taxes, and treaties, and are not advice. Residence rules change often. Verify before acting.