01
Corporate tax
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%
02
Owner taxation
Individuals face progressive taxation based on class, family, residence and municipality; dividends, gains, structural distributions, wealth and other countries' taxes require separate analysis
A tax rate is only one part of an international structure. 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%.
03
VAT and indirect tax
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
04
Cross-border payments
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. 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.
05
Evidence and control
Formation connects the name, notarial deed for capital companies, capital, registered office, RCS and RESA, business permit, Register of Beneficial Owners, tax registration, accounting and annual reporting. 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.
FAQ
FAQ
Where should a tax strategy project in Luxembourg start?
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%
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
- Bank accounts and private banking
- Open primary source
- Private wealth: foundations and trusts
- Open primary source
- Relevant practice
- Open primary source