Europe · Benelux
Luxembourg
A founding EU member with a top-tier passport, a genuine investor residence permit — and a government actively trying to abolish that permit because almost nobody used it.
Tax position
- Income tax (top)
- 45.78% maximum including the employment fund surcharge (42% top bracket plus a 7% surcharge, rising to 9% on income above EUR 150,000)
- Capital gains
- gains on shares sold within 6 months are taxed as speculative income at ordinary rates; after 6 months, gains are exempt where the holding is under 10% of the company. Real estate has its own regime
- Wealth tax
- none for individuals — abolished with effect from 1 January 2006. The net wealth tax survives but applies to COMPANIES only, which is the source of persistent confusion
- Inheritance tax
- none in the direct line (parents to children) for most assets; rates apply between more distant relations and unrelated parties
- Special regime
- Impatriate regime reformed with effect from 1 January 2025: a flat 50% exemption of eligible gross annual remuneration up to a EUR 400,000 base, i.e. a maximum exemption of EUR 200,000 per year
- Territorial
- No — worldwide income taxed
- CFC rules
- Yes
- Exit tax
- Yes — leaving has a cost
- CRS
- Participating
Closed — listed so you do not chase them
Is Luxembourg actually right for your family?
We will tell you if it is not. That is the whole service.