01
Licensed infrastructure
Banks, investment firms, payment and e-money institutions and managers are checked in the CSSF's official database; private banking, custody, corporate accounts, fund services and payments depend on authorisation and client policy
02
KYC and origin of wealth
A bank reviews UBOs, RBE evidence, tax residence, source of wealth and funds, capital history, business plan, financials, markets, counterparties, expected flows, PEPs and sanctions risk and is not obliged to open an account
An account is opened for a coherent profile, not a jurisdiction name. A bank reviews UBOs, RBE evidence, tax residence, source of wealth and funds, capital history, business plan, financials, markets, counterparties, expected flows, PEPs and sanctions risk and is not obliged to open an account.
03
Company and private client
A legal address does not replace the centre of effective management. Board process, authority, local decisions, directors, people, premises, expenditure, agreements and risk control should match the company's role. From 2025 the headline corporate income-tax rate for profit above EUR 200,000 is 16%; with the employment-fund surcharge and communal business tax the Luxembourg City combined example is 23.87%.
04
Trusts and foundations
Private-wealth planning may use SPFs, SOPARFIs, investment funds, insurance solutions, fiduciary arrangements and recognised foreign trusts; the tool depends on owners, assets, governance, succession, regulation and tax. An SPF is restricted to eligible investors and personal asset management and should not conduct an ordinary commercial business. A SOPARFI is not a special preferential status; funds and managers remain subject to the applicable product and licensing framework.
05
After opening
Individuals face progressive taxation based on class, family, residence and municipality; dividends, gains, structural distributions, wealth and other countries' taxes require separate analysis. Standard VAT is 17%, while 14%, 8% and 3% apply to specified categories; place of supply, intra-EU activity, imports, exemptions and input recovery depend on the chain.
FAQ
FAQ
Where should a bank accounts and private banking project in Luxembourg start?
Banks, investment firms, payment and e-money institutions and managers are checked in the CSSF's official database; private banking, custody, corporate accounts, fund services and payments depend on authorisation and client policy
Can formation or account opening be guaranteed?
This material is general information. Formation, licensing, tax outcomes and account opening depend on the facts and the decision of the competent authority or financial institution.
Why are tax and banking reviewed together?
From 2025 the headline corporate income-tax rate for profit above EUR 200,000 is 16%; with the employment-fund surcharge and communal business tax the Luxembourg City combined example is 23.87%. A bank reviews UBOs, RBE evidence, tax residence, source of wealth and funds, capital history, business plan, financials, markets, counterparties, expected flows, PEPs and sanctions risk and is not obliged to open an account.
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Related routes
- Company formation
- Open primary source
- Private wealth: foundations and trusts
- Open primary source
- Tax strategy
- Open primary source
- Relevant practice
- Open primary source