Luxembourg’s tax authorities clarified the tax implications of simplified liquidations, treating them like mergers for tax purposes. The new rules allow tax-neutral treatment under certain conditions and preserve Net Wealth Tax (NWT) reserves. These changes benefit sole shareholders who are looking for efficient business closures.

• Read article

A Luxembourg SOPARFI is a fully taxable holding company that benefits from tax exemptions on qualifying dividends, capital gains, and certain intellectual property income. It is subject to corporate income tax, municipal business tax, and net wealth tax and may benefit from international tax treaties and European Directives.

• Read article

Luxembourg's wealth management companies (SPFs) are exempt from corporate income tax, municipal business tax, and net wealth tax, paying a 0.25% subscription tax on share capital and certain debts. SPFs can only hold passive financial assets and are prohibited from engaging in commercial activities or managing subsidiaries.

• Read article

Luxembourg's Private Wealth Management Company (SPF) is a non-commercial entity limited to holding and managing financial assets. Recent legislative changes, effective 1 January 2025, increased the minimum annual subscription tax from EUR 100 to EUR 1,000 and introduced new administrative fines up to EUR 250,000.

• Read article

Luxembourg’s updated inpatriates regime targets international talent by offering a flat 50% income tax exemption on salaries up to EUR 400,000 of impatriates remuneration. This ensures genuine expat recruitment, enhancing the country’s competitiveness.

• Read article

Setting up a company in Luxembourg differs from that in neighboring countries, and follows a very specific process. Fiduciary LPG explains what you need to consider when setting up your company.

• Read article