Not at all – the tax benefits in Luxembourg are carefully structured to ensure minimal disruption with other EU countries. In many ways it is a high-tax country – Corporate Income Tax is 31%, individual tax rates are higher and there’s a Wealth Tax on top of this.
On the face of it, the corporate structure in Luxembourg is similar to that of most other EU states, with most companies adopting the usual Joint Stock or Limited Liability formats. However within this standard structure is a strictly-defined class of holding company.
If you qualify for this Corporate Income Tax can sink to below 1%. For expert advice, we can put you in touch with one of our local specialists in tax planning .