Why Incorporate in Luxembourg
Updated time: Jul 28, 2020, 14:08 (UTC+07:00)
Some benefits why incorporate in Luxembourg:
- Internationally recognised financial centre
- Strategic location in Europe with a high standard of living
- The availability of a qualified multilingual workforce speaking English, French and German
- Political and social stability
- Favourable tax treaty agreements with 57 countries
- Very competitive company taxation at 28.59% which is made up of a corporate tax of 21.00% plus an unemployment surcharge of 0.84% and a municipal business tax of 6.75% (for Luxembourg City).
- Companies are also subject to a wealth tax of 0.5% of net assets with certain exemptions.
- No withholding taxes on dividends, paid to EU or double tax treaty resident companies otherwise 15%.
- No withholding tax on interest and royalties.
- Lowest VAT rate in Europe at 15%.
- Very competitive personal tax rates up to a maximum of 38.95%.
- Very low social security rates of 12% for employees and 13% for employers
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