Favorable taxation

Besides the lowest level of VAT in the European Union (EU), Luxembourg's effective corporate income tax is among the most favorable in Europe. Accelerated depreciation and tax credits, applied to qualifying investments, complete the attractive tax climate, thus contributing to the successful start-up and to a high return on investment.

At a glance

  • lowest VAT rate within the EU
  • moderated effective corporate tax rate
  • limited pressure on salary
  • comprehensive participation exemption regime
  • investment tax credits
  • advantageous IP box
  • extended non double taxation regime network.

     

This picture is a map of the world showing the countries with which Luxembourg has double tax treaties. Treaties in discussion are also shown.

 

Conventions for the avoidance of double taxation in force

Andorra

Greece

Malta

Slovakia

Vietnam

Armenia

Guernsey

Mauritius

Slovenia

 

Austria

Hong Kong

Mexico

South Africa

 

Azerbaijan

Hungary

Moldova

South Korea

 

Bahrain

Iceland

Monaco

Spain

 

Barbados

India

Mongolia

Sri Lanka

 

Belgium

Indonesia

Morocco

Sweden

 

Brasil

Ireland

Netherlands

Switzerland

 

Brunei

Isle of Man

Norway

Taïwan

 

Bulgaria

Israel

Panama

Tajikistan

 

Canada

Italia

Poland

Thaïland

 

China

Japan

Portugal

Trinidad and Tobago

 

Croatia

Jersey

Qatar

Tunisia

 

Czechia

Kazakhstan

Romania

Turkey

 

Denmark

Laos

Russia

Ukraine

 

Estonia

Latvia

San Marino

United Arab Emirates

 

Finland

Liechtenstein

Saudi Arabia

United Kingdom

 

France

Lithuania

Serbia

United States of America

 

Georgia

Macedonia

Seychelles

Uruguay

 

Germany

Malaysia

Singapore

Uzbekistan

 

   

Conventions being negociated

Albania

Lebanon

Argentina

New Zealand

Botswana

Oman

Cyprus

Pakistan

Egypt

Senegal


Kuweit

Syria

Kyrgyzstan

 

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