Luxembourg

The world’s wealthiest country by GDP and one of the smallest in size, Luxembourg provides a unique low-tax environment for international investors.

It is also a founder member of the EU, a fact that sits oddly with its status as a tax haven.

The country is widely used in corporate structuring for cross border transactions, but due to its place in Europe’s political environment it is constantly adapting its tax legislation to avoid adverse conflict with the tax authorities of other EU countries.

Due to its progressive and adaptive approach, Luxembourg is, and will remain, a beneficial country for international business structuring. As a result, Luxembourg’s tax laws frequently come under scrutiny from other EU states and are prone to change. So, if you want to capitalise fully on the many advantages of opening a company in Luxembourg talk to us about company formation, bank accounts and everything else you need to know.

We will steer you safely through Luxembourg’s complex tax regulations. Is Luxembourg a low-tax environment for everyone? Not at all – purposely the tax benefits in Luxembourg are carefully structured to ensure minimal disruption with other EU countries. In many ways it is a high-tax country – corporate income tax is 31%, individual tax rates are higher and there’s a wealth tax on top.

On the face of it, the corporate structure in Luxembourg is similar to that of most other EU states, with most companies adopting the usual joint stock or limited liability formats. However within this standard structure is a strictly-defined class of holding company. Qualify for this – and corporate income tax can sink to below 1%.

For expert advice, we can put you in touch with one of our local specialists in tax planning.
Luxembourg is a major centre for financial services, and there are more than 200 banks in a country whose population is below half a million. No surprise, then, that Luxembourg offers world-class banking facilities. Most international banks are represented here. You will need to open a bank account in Luxembourg and we can advise you on this.