Luxembourg vs Zug: Zug keeps $222K more of $1M

Luxembourg vs Zug.

Zug leaves about $222K more of a $1M income in hand each year than Luxembourg, on the Patrician.ch 2026 model. 🇱🇺 Luxembourg against 🇨🇭 Switzerland, 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 Zug takes 21%, so Zug leaves about $222K more in hand each year on the Patrician.ch 2026 model.
Neither Luxembourg nor Zug taxes a capital gain on a disposal by a resident individual, so a liquidity event realized after residence begins is not taxed locally in either.
Luxembourg is modeled with no special regime for arriving foreigners. Switzerland operates: Lump sum taxation is available in Zug, one of the 21 cantons that still offer it. The tax is set on a deemed spending base, at least 7 times the rent or rental value of the home, with a federal floor of CHF 435,000 for 2026 and a Zug floor of CHF 500,000 of taxable income. Zug ordinary rates are already among the lowest in Switzerland.
Inheritance, what a child pays: nothing on the statutory share in Luxembourg, nothing in Zug.
Route in: Luxembourg by Residence by investment, Founder & talent. Zug by Lump sum residence, Founder & talent.
Cost of the life is 88 in Luxembourg against 92 in Zug on the Patrician.ch index where Zurich is 100, and safety 9 against 10 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 Zug: tax, residence and cost 2026, patrician.ch/compare/luxembourg-vs-zug/, October 2026.

Zug, Switzerland — **Zug** 🇨🇭 Switzerland

	Luxembourg	Zug
Effective tax at $300K	38%	16%
Effective tax at $1M	44%	21%
Effective tax at $3M	45%	22%
Kept after tax at $1M	$565K	$787K
Capital gains	0%	0%
Inheritance tax, children	nothing on the statutory share	nothing
Cost index (Zurich 100)	88	92
A 200 m² prime home, US$	$2.8M	$7.7M
Prestige of address (editorial)	6/10	8/10
Safety	9/10	10/10
Schools	9/10	8/10
Sun hours	1,800	1,700
Supercar street index	#47	#51
Routes in	Residence by investment, Founder & talent	Lump sum residence, Founder & talent
Net millionaire flow, 2025 forecast (country, Henley)	n/a	+3,000
Flight from London	1h 20m nonstop	1h 50m nonstop
Flight from New York	7h 55m nonstop	7h 45m nonstop

See these 2 places for your own income.Luxembourg and Zug, 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%Zug16%21%22%

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

Zug keeps more of a $1M salary, $222K a year on this model. Luxembourg answers with schools.

For a founder with an exit

Capital gains land at 0% in both. Zug levies an annual wealth tax, top rate 0.22%. Luxembourg levies none.

For a family

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

LuxembourgThe full page

ZugThe full page Rank both on my numbersThe engine, 90 seconds

Questions

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

Zug, by about $222K a year on Patrician.ch's 2026 model.

Luxembourg takes an effective 44% of $1,000,000 and Zug takes 21%. At $3,000,000 the rates are 45% and 22%.

Which taxes capital gains less, Luxembourg or Zug?

Neither taxes them. Luxembourg and Zug both levy no capital gains tax on a resident individual.

Which is better for inheritance, Luxembourg or Zug?

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. Switzerland has no federal inheritance tax. The canton sets it: every canton exempts a spouse, and all but Vaud, Neuchâtel and Appenzell Innerrhoden exempt children. Some Lucerne municipalities tax children.

Which is cheaper to live in, Luxembourg or Zug?

Luxembourg, at 88 on the Patrician.ch cost index against 92 for Zug, where Zurich is 100.

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

The Dossier: Luxembourg, Zug, 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 Zug, 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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Income tax on the published 2026 rules. Social contributions, most deductions and treaties are not modeled. In Switzerland employees also pay AHV, IV and EO at 5.3% of salary, with no cap. 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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