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Tax advice for expatriates in Luxembourg

Luxembourg has an attractive tax, political and economic system that attracts many expatriates and multinationals.

Luxembourg, a tax haven?

A solid regulatory framework

Luxembourg has established a solid regulatory environment that fosters innovation while maintaining high standards of transparency and compliance. The Commission de Surveillance du Secteur Financier (CSSF) ensures the stability of Luxembourg's financial system.

Competitive tax system

Nevertheless, Luxembourg remains renowned for its competitive tax regime. Many multinationals establish their European headquarters or operational centers in Luxembourg because of the favorable tax environment: relatively low tax rates, attractive tax incentives for their international activities.

For individuals, tax rates are progressive according to income. Low-income households are not taxed. Others benefit from various tax breaks on their taxable income.

Find out more about possible tax deductions for individual taxpayers.

Tax transparency in Luxembourg

Luxembourg has long been considered a tax haven. Revelations of financial scandals such as the LuxLeaks have contributed to this reputation. Today, however, Luxembourg has embarked on a process of fiscal transparency. Banking secrecy no longer exists since 2013. And Luxembourg applies the directives on money laundering and tax evasion.

The Grand Duchy wishes to combat tax evasion and demonstrate its willingness to align its tax policy with international standards. It is working towards international cooperation in the exchange of tax information.

Bilateral tax treaties

Luxembourg has signed numerous bilateral tax treaties to avoid double taxation and encourage economic exchanges.

These agreements determine the tax rules applicable to income generated abroad by Luxembourg residents, and vice versa. This makes it possible to avoid double taxation when declaring taxes in Luxembourg.

A complex system of tax laws

Luxembourg's tax system is based on a series of tax laws aimed at both individuals and companies.

Direct taxes include personalincome tax, corporate income tax and value-added tax (VAT).

The personal income tax rate is progressive and deducted at source. It is calculated according to the taxpayer's level of income.

Companies have to pay various taxes, including corporate income tax. This applies to company profits. It is 15% for income of less than 200,000 euros a year, and 17% above that.

In addition, Luxembourg's tax system appears at first glance to be more advantageous than that of neighboring countries. Real estate is not taxed in the same way as in France, and social security contributions do not add considerably to the tax burden, particularly on property income. Direct line inheritance taxes are not levied between parents and children resident in Luxembourg.

However, taxation is progressive and proportional to income received. Find out more about personal taxation.

Experts in financial and tax services

Luxembourg has a wealth of financial experts and investment advisors. Its financial center and its auditing and consulting firms are renowned. In fact, the country has become a key hub for financial and tax services. Financial and tax expertise plays a central role, contributing to the country's economic prosperity and attracting investors from all over the world.

Tax advice in Luxembourg is essential to optimize the tax situation of residents and companies.

These tax experts can help individuals structure their income and wealth.

For companies with international operations, there are different tax regimes, such as holding companies and Parfi.

And like anywhere else when you arrive in a new country, it's crucial to master the tax system and to be able to benefit from financial advice .

Find out more about tax and advisory services in Luxembourg.

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