Luxembourg tax expertise
Tax & Tax Returns in Luxembourg
CIT, VAT, municipal business tax, withholding tax - we manage all your tax obligations in full compliance.
Tax simulator
Estimate your tax costs
150 000 €
25,0 k €2,0 M €
Estimated tax burden
31 414 €
20.94%
Effective rate- CIT (14% / 16%)21 000 €
- Employment fund contribution (7%)1 470 €
- MBT (6.75% — Luxembourg-City)8 944 €
2026 rates, Luxembourg-City · indicative estimate.
Certified accountant holding establishment permits 0/10077274 and ancillary authorisations for accounting professions
LicensedRCSB213987
AUTORISATION10077274
Our expertise
CIT, MBT, VAT filings, withholding tax, IP Box and Participation Exemption optimisation: our tax team manages all your obligations in full compliance with Luxembourg law and BEPS standards.
17% CIT (lowest in the EU alongside Ireland)80+ tax treatiesIP Box Article 50ter LIRBEPS / ATAD compliant
Key figures
In Luxembourg, companies are subject to three direct taxes: CIT (Corporate Income Tax, 17%), MBT (Municipal Business Tax, 6.75% in Luxembourg City) and net wealth tax (0.5%). The effective overall rate stands at 24.94%, among the most competitive in Europe. Legal optimisation schemes exist: Participation Exemption on dividends and capital gains, IP Box (80% exemption on IP income), and a network of 80+ bilateral tax treaties.
Automated Luxembourg tax filings, VAT, IRC, ICC and IP Box optimization
2026 ratesTax rates in Luxembourg
Tax rates in Luxembourg
Full overview
All 2026 tax rates for companies and individuals, consolidated into one clear and actionable view.
2026
16 %
CIT : top nominal rate (income > €200,000)
2026
23,87 %
Overall effective rate in Luxembourg City (CIT + employment fund + MBT)
2026
80 %
IP Box exemption on qualifying intellectual property income
Direct taxes
6 taux
0114 %
CIT : lower bracket
Taxable income ≤ €175,000
0224 500 € + 30 %
CIT : intermediate bracket
Income between €175,000 and €200,000 (marginal 30%)
0316 %
CIT : upper bracket
Taxable income > €200,000
047 %
Employment fund contribution
7% computed on CIT due
056,75 %
MBT : Luxembourg City
Municipal business tax, varies by municipality
060,5 %
Net Wealth Tax (NWT)
On the company's unitary net asset value
VAT & withholding tax
6 taux
0117 %
VAT : standard rate
Applicable to most goods and services
0214 %
VAT : intermediate rate
Fund management, certain wines, fuels
038 %
VAT : reduced rate
Gas, electricity, district heating, small repairs
043 %
VAT : super-reduced rate
Food, books, medicines, restaurants, home renovation
0515 %
Withholding tax : dividends
Reduced via tax treaties and parent-subsidiary directive
060 %
Withholding tax : royalties
No withholding on outbound royalties
2026 rates, Luxembourg City · indicative estimate. Consult an expert for your situation.
Attractive tax regimes in Luxembourg
Luxembourg offers legal tax optimization regimes, fully compliant with EU law and OECD/BEPS standards. Discover the 6 most used mechanisms by entrepreneurs and investors.
Most used
01
SOPARFI: Participation Exemption
The most widely used Luxembourg holding vehicle in Europe
0% on qualifying dividends/gainsArt. 166 LIR
Learn more02
IP Box: Article 50ter LIR
Effective rate of about 5% on intellectual property income
around 5%Art. 50ter LIR
Learn more03
Fiscal unity: Organschaft
Consolidate a group fiscally and offset losses between entities
Intra-group loss/profit offsetArt. 164bis LIR
Learn more04
Bilateral tax treaties
Over 80 treaties to avoid double taxation
Reduction or elimination of withholdingOECD model and bilateral agreements
Learn more05
RAIF: Reserved Alternative Investment Fund
Fast and flexible structuring for well-informed investors
0.01% annual subscription taxLaw of 23 July 2016
Learn more06
Tax ruling: prior ACD agreement
Fully secure the tax treatment of your operations
Enforceable legal certainty§ 29a AO (procedure)
Learn moreLuxembourg's tax treaties network
With more than 80 bilateral tax treaties signed, Luxembourg offers exceptional access to reduced withholding tax rates, a key competitive advantage for holding companies and international dividend distribution structures.
2026
80+
Tax treaties signed
2026
0 %
Royalty WHT (most DTTs)
2026
5 %
Reduced dividend WHT (DTTs)
2026
0 %
Dividend WHT (parent-subsidiary directive)
Europe
FRFrance(0 %)
DEGermany(0 %)
BEBelgium(0 %)
NLNetherlands(0 %)
CHSwitzerland(5 %)
Middle East & Africa
AEUAE(0 %)
QAQatar(0 %)
SASaudi Arabia(5 %)
MAMorocco(10 %)
TNTunisia(5 %)
Declaration calendar
Never miss a tax deadline
| Declaration | Deadline | Applicable to |
|---|---|---|
| Monthly VAT | 15th of the following month | Turnover > €620,000/year |
| Quarterly VAT | 15th of the month following the quarter | Turnover < €620,000/year |
| Annual VAT | 1 May | Turnover < €112,000/year |
| CIT return (mod. 500) | 31 May (+ extension possible) | All capital companies |
| Income tax return (mod. 100) | 31 March | Individuals, self-employed |
| Withholding tax | 8 days after payment | Companies distributing dividends/interest |
| Net Wealth Tax | 31 May | All capital companies |
Overview of our tax services
Watch how our team secures your filings and optimises your tax burden.
Video coming soon
Our client references
Luxembourg-based companies that chose us to support their growth.
Complementary services
Optimize your entire operations with our AI ecosystem
Accounting, taxation, payroll, liquidation, automation. A licensed Luxembourg firm covering all your needs.
We implement every software
Simplifying Luxembourg's complexity
Odoo ERP
The most flexible open-source ERP
Complete business management solution: accounting, invoicing, CRM, inventory and more. Perfectly suited for Luxembourg SMEs.
Request an Odoo quote- Accounting compliant with Luxembourg PCN
- Automated electronic invoicing
- Stock and logistics management
- CRM and opportunity tracking
- Customizable dashboards
The team
The faces behind
Bookkeeper.lu
A Luxembourg-based team dedicated to the success of your entrepreneurial project.
Co-founder & Managing Director
Mickaël LOC
17 years at the heart of Luxembourg structures.
Managing Director of Financial Services Luxembourg, Mickaël supports entrepreneurs, SMEs and family offices in structuring, creating and managing their Luxembourg entities. Recognized expert, cited in Le Figaro.
No. AE 0/10077274
Business authorization
17 years experience
Lux. corporate law
Cited in Le Figaro
Recognized expertise
FR · EN · DE · LU
Multilingual advisory
CTO
Antoine MARCHI
Technology at the service of fiduciary.
Architect and developer of the Bookkeeper.lu platform, Antoine designs the automation, AI and cloud infrastructure tools that enable Financial Services to deliver a fast and reliable digital service.
5+ years experience
Software Engineering
AI & Automation
Cloud, DevOps, Full-stack
Product Builder
Fintech & SaaS
Next.js · React · TypeScript
Modern stack
Our values
01
Responsiveness
Guaranteed response within 48 hours. We handle every request with the utmost urgency.
02
Client satisfaction
Your success is our top priority. 98% of our clients recommend us.
03
AI-powered execution speed
Thanks to artificial intelligence, we accelerate every step, from drafting articles of association to full accounting management.
04
Made in Luxembourg
Everything is done from Luxembourg. Local team, data hosted in Europe, guaranteed compliance.
Frequently asked questions - Tax
Answers to the most common questions about Luxembourg taxation
Optimise your tax position
Legally reduce your tax burden in Luxembourg.
Participation Exemption, IP Box, tax treaties: our team identifies and applies every optimisation regime you are entitled to. Confidential advice guaranteed.
Free audit
Confidential advice
N°AE 10077274