Company formation

Corporate taxes in Luxembourg

Luxembourg has a policy of maintaining relatively low income taxes and social insurance costs. The total corporate tax is moderate, in comparison with other European countries. Companies that are doing business in Luxembourg are subject to corporate income tax, municipal business tax, minimum tax, net worth tax, Chamber of Commerce contribution and VAT. However, there is no branch tax and no excess profits tax.

Work permit in Luxembourg

As part of the EU, Luxembourg welcomes foreign direct investments from the EU and workers who are able to find a job in the country. Persons who wish to work in Luxembourg may require a special work permit, depending of their country of residence, as well as other factors that need to be taken into consideration.

Types of taxes in Luxembourg

As far as taxation goes, Luxembourg has an overall moderate tax rate in comparison with other European countries. There are 4 main categories of taxes: corporate taxes, withholding taxes, indirect taxes and taxes on individuals as they are regulated by the current tax legislation.