Taxes in Luxembourg

Luxembourg is home to an attractive tax regime; accordingly, Luxembourg companies may be structured in such a way that they are partially or completely tax-free:

  • rate of corporate income tax: 21%-22%
  • rate of tax on the payments of royalties, interest and on partial or complete proceeds from liquidation: 0%
  • rate of value-added tax (VAT): (maximum) 15%
  • preferential taxation of Companies for Intellectual Property: 5.84%
  • Investment Funds are not liable to corporate income tax, municipal business tax and net wealth tax
  • preferential taxation of SOPARFI-Financial Holding Companies:
    • under certain conditions, proceeds from dividends, sale or liquidation of a subsidiary company are tax-free
    • in certain cases, profits may be distributed tax-free
    • no withholding tax on interest payments
    • no withholding tax on the distribution of liquidation proceeds
LEGAL NOTICE|SITEMAP
LUXEMBOURG CONSULTING GROUP

INFO-HOTLINE

00352-250345

OUR TEAM

  • LAWYERS
  • TAX CONSULTANTS
  • AUDITORS

AND AN EFFICIENT BACK-OFFICE

LUXEMBOURG NEWS

Exemption of risk management services from value-added tax (VAT)

On November 7th, 2013, Luxembourg's tax authority issued a Circular Letter on the scope of the value-added tax (VAT) exemption for the management of Investment Funds.