An attractive tax & legal framework

Luxembourg offers a transparent, competitive and secure environment that is highly valued by entrepreneurs, investors and international groups.

A modern & transparent tax framework

A system designed for businesses

Luxembourg benefits from a clear, modern tax system aligned with international standards. Companies particularly value the stability of the tax regime, the predictability of regulations, and the overall readability of the legal framework.

Its investment-friendly policies, predictable tax base and extensive network of double tax treaties make it a strategic location to structure an activity or an entire group.

Strengths of the Luxembourg framework

A competitive & secure tax environment

Attractive tax rates

Competitive corporate income tax and optimised mechanisms for group taxation.

Legislative stability

A predictable legal framework, trusted by investors and aligned with OECD/EU standards.

Tax treaty network

80+ double tax treaties supporting cross-border investment and capital mobility.

Incentive regimes

IP Box deductions and participation exemption mechanisms for dividends and capital gains.

Efficient company law

Fast incorporation, legal flexibility, strong shareholder protection and modern governance.

Constructive dialogue

Smooth interactions between businesses, the administration and regulatory authorities.

Available structures

Flexible corporate forms

Luxembourg offers a wide range of legal forms tailored to entrepreneurs, SMEs, holding companies, institutional investors and international groups.

Luxembourg company law is known for its flexibility, particularly for capital structuring, governance arrangements, group structuring and wealth planning.

This adaptability makes it possible to set up efficient structures that are quick to incorporate and globally recognised.

SARL & SARL-S

Ideal for SMEs, entrepreneurs and standard commercial activities.

SA & SCA

Suitable for investors, holding companies and larger organisations.

SOPARFI

Participation companies benefiting from exemptions on dividends & capital gains.

Investment structures

RAIF, SIF, SICAR: regulated or semi-regulated vehicles suited to professional investors.

Compliance & supervision

A rigorous & recognised regulatory framework

Luxembourg applies strict compliance standards while maintaining a pragmatic, business-oriented approach. Luxembourg regulators are known for their availability, expertise and responsiveness.

The CSSF (financial sector) and the CAA (insurance) supervise market participants with rigour and transparency, strengthening the credibility of the financial centre.

The country fully complies with European standards: AML/CFT, tax transparency, DAC6, CRR/CRD, AIFMD, MiFID… ensuring a solid and compliant environment.

For investors and businesses, this combination of high standards and stability provides a secure foundation for international operations.

Key regulatory strengths

Recognised and effective financial supervision.
Compliance with European & international standards.
Open dialogue with the administration.
Enhanced legal certainty.
A credible environment for international investors.