A company established under the Luxembourgian legislation has many advantages in terms of taxation:
As a permanent resident, Luxembourg is the only European state to offer full banking confidentiality of your personal and business accounts.
The business secrecy
Luxembourg is the only European state to offer full management confidentiality of your business.
Reduced taxation rate
Taxes on profits represent: 22.47%
VAT rate
The main standard VAT rates applied in different countries of the European Union:
| Austria | Belgium | France | Germany | Italy | The Netherlands | Spain |
| 20% | 21% | 20% | 19% | 22% | 21% | 21% |
Luxembourg standard rates:
- 17% – Goods and services
- 14% – Wine, advertising material
- 8% – Energy, water, electricity, plants, hairdresser
- 3% – Water, food and catering, transport of people
According to your company’s activity:
Travel expenses
Possibility to deduct several costs (business trips, meals, hotel, fuel…).
Being employed under the Luxemburger system
Possibility to be employed under the luxemburger system and to benefit from the reduced tax rate with taxes levied at source and obtain interesting child allowances.
Having employees under the Luxemburger system
Possibility to have employees and to benefit from the reduced payroll taxes: wage share at 12.95% and employer’s contribution at 13.48% of gross salary.
Company car
Possibility to register a company car (100% amortization, recoverable VAT on any type of vehicle, all expenses associated to its use are deductible).