Luxembourg vs Porto Cervo: Luxembourg taxes gains at 0%, not 26%

Luxembourg vs Porto Cervo.

Income tax on $1M lands within $2K in Luxembourg and Porto Cervo, so a sale decides it: Luxembourg taxes a resident's capital gain at 0% and Porto Cervo at 26%. 🇱🇺 Luxembourg against 🇮🇹 Sardinia, Italy, compared on tax, residence, cost and the life.

In short, current to October 2026

On $1,000,000 of income, Luxembourg takes an effective 44% and Porto Cervo takes 43%, so Porto Cervo leaves about $2K more in hand each year on the Patrician.ch 2026 model.
On a capital gain realized after residence begins, Luxembourg charges 0% and Porto Cervo charges 26%. On a $5,000,000 event that is a difference of about $1.3M.
Luxembourg is modeled with no special regime for arriving foreigners. Italy operates: Flat tax for new residents on foreign income under Article 24-bis, a fixed 300,000 euros a year for anyone who becomes resident from 1 January 2026, plus 50,000 euros per family member, for up to 15 years. Earlier entrants keep the 100,000 or 200,000 rate they joined on (2026 Budget Law, Law 199 of 30.12.2025).
Inheritance, what a child pays: nothing on the statutory share in Luxembourg, 4% above €1M in Porto Cervo.
Route in: Luxembourg by Residence by investment, Founder & talent. Porto Cervo by Residence by investment, Lump sum residence, Founder & talent.
Cost of the life is 88 in Luxembourg against 130 in Porto Cervo on the Patrician.ch index where Zurich is 100, and safety 9 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 29 October 2026. Cite as: Patrician.ch, Luxembourg vs Porto Cervo (Sardinia): tax, residence and cost 2026, patrician.ch/compare/luxembourg-vs-porto-cervo/, October 2026.

Porto Cervo, Italy — **Porto Cervo** 🇮🇹 Italy

	Luxembourg	Porto Cervo
Effective tax at $300K	38%	41%
Effective tax at $1M	44%	43%
Effective tax at $3M	45%	44%
Kept after tax at $1M	$565K	$566K
Capital gains	0%	26%
Inheritance tax, children	nothing on the statutory share	4% above €1M
Cost index (Zurich 100)	88	130
A 200 m² prime home, US$	$2.8M	$4.5M
Prestige of address (editorial)	6/10	9/10
Safety	9/10	9/10
Schools	9/10	3/10
Sun hours	1,800	2,630
Supercar street index	#47	#28
Routes in	Residence by investment, Founder & talent	Residence by investment, Lump sum residence, Founder & talent
Net millionaire flow, 2025 forecast (country, Henley)	n/a	+3,600
Flight from London	1h 20m nonstop	2h 40m nonstop
Flight from New York	7h 55m nonstop	8h 30m nonstop

See these 2 places for your own income.Luxembourg and Porto Cervo, 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.

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Head to head

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

$300K$1M$3MLuxembourg38%44%45%Porto Cervo41%43%44%

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

Porto Cervo (Sardinia) keeps more of a $1M salary, $2K a year on this model. Luxembourg answers with schools.

For a founder with an exit

Capital gains: Luxembourg 0%, Porto Cervo 26%. Porto Cervo levies an annual wealth tax, top rate 0.2%. Luxembourg levies none.

For a family

Luxembourg leads on schools and a lower cost, Porto Cervo (Sardinia) on sun. Safety is level.

LuxembourgThe full page

Porto CervoThe full page Rank both on my numbersThe engine, 90 seconds

Questions

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

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

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

Which taxes capital gains less, Luxembourg or Porto Cervo?

Luxembourg, at 0% against 26% in Porto Cervo.

On a $5,000,000 liquidity event realized after residence begins, the difference is about $1.3M.

Which is better for inheritance, Luxembourg or Porto Cervo?

Luxembourg. What a child pays: nothing on the statutory share in Luxembourg, 4% above €1M in Porto Cervo.

Luxembourg exempts children, and a spouse with common children, on what they inherit within the statutory share. Italy taxes a spouse and each child at 4% above a €1,000,000 allowance each.

Which is cheaper to live in, Luxembourg or Porto Cervo?

Luxembourg, at 88 on the Patrician.ch cost index against 130 for Porto Cervo, where Zurich is 100.

Safety scores 9 of 10 in Luxembourg and 9 of 10 in Porto Cervo, schools 9 and 3. These are Patrician.ch editorial indices, not published statistics.

The Dossier: Luxembourg, Porto Cervo, 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.

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The income tax of Luxembourg and Porto Cervo, 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.

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<p style="margin:6px 0 0;font-size:.875em;line-height:1.4">Research by <a href="https://patrician.ch/compare/luxembourg-vs-porto-cervo/">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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