Why Luxembourg?

Luxembourg as a prime location for holding, finance and service companies

Why Luxembourg?

• International business environment promoted by highly qualified and multicultural professionals
• Highly competitive corporate tax system:
• Very favorable Participation exemption regime
• No CFC rules
• No WHT on interest
• Low effective tax rate
• Fiscal unity allowing the consolidation of tax results
• Low tax cost on exit
• Reliability of tax laws
• Tax certainty through Advance Tax Agreements
• Expanding tax treaty network for non EU investments
• Flexible transfer pricing rules
• Monitoring of capital duty through exemption or use of hybrid instruments according to favorable thin-capitalization rules
• Highly advantageous VAT position:
• Low VAT rates (the lowest combined rates in the EU): 3%, 6%, 12%, 15%
• Pre-financing optimization (B2B transactions): Importation, supply of goods and services
• The widest scope of application of the VAT exemption in financial sector through EU
• Full VAT deduction: car leasing, fuel, entertainment expenses…
• Easy and flexible VAT compliance system  and extended deadlines for VAT returns