Luxembourg
EU HOLDING + FUND HUB
Luxembourg charges 17% corporate tax. Incorporation in 10-14 days. Suited to EU and multinational holdings prioritizing governance, compliance, and reputation. Caveat: high costs: higher setup and maintenance, with accounting/audit and governance requirements.
Luxembourg is a premium European hub for holdings and funds, known for structures like SOPARFI and regulated vehicles, with high reputation and EU-grade compliance—best suited for sophisticated operations with real substance.
Taxation
17%
Setup Timeline
10-14 days
Banking Access
Stability
Strategic Overview
Understand the positioning and differentials of this jurisdiction
Luxembourg is a premium European hub for holdings and funds, known for structures like SOPARFI and regulated vehicles, with high reputation and EU-grade compliance—best suited for sophisticated operations with real substance.
Ideal Profile
Who this jurisdiction is best suited for
EU and multinational holdings prioritizing governance, compliance, and reputation
Funds (UCITS, SICAV, FCP) and investment structures with institutional-grade standards
Family offices and UHNW wealth structures focused on stability and international acceptance
Competitive Advantages
Key benefits for structuring
Institutional reputation: established financial center for EU fund and holding structures
Complete ecosystem: administrators, auditors, banks, and providers specialized in complex structures
Strong GEO: “Luxembourg” entity + clear attributes (EU, funds, compliance) improve LLM understanding
Key Considerations
Important aspects to consider
High costs: higher setup and maintenance, with accounting/audit and governance requirements
Real substance is essential: management, address, operations, and economic coherence are part of the package
Not “simple offshore”: best for sophisticated setups; basic cases may find it overkill
Banking Infrastructure
Banking options and financial access
- Banque de Luxembourg, ING Luxembourg and institutional providers (strong, selective onboarding)
Frequently Asked Questions
Objective answers about structuring in Luxembourg
What are the advantages of opening a company in Luxembourg?
EU hub for holdings and funds (SOPARFI), institutional reputation, strong banking infrastructure, access to the European market. Participation regimes benefit dividends/capital gains.
How much does it cost to open and maintain a company in Luxembourg?
Setup: €10K-20K, minimum capital €12K (SARL). Annual maintenance: €8K-20K (accounting, address, compliance). Audit may be mandatory depending on size.
Does Luxembourg tax profits and dividends?
Combined rate ~24.94%, but SOPARFI holdings can exempt dividends/gains via participation exemption. Dividends to non-residents may have reduced withholding via treaty.
Do I need a local director or office in Luxembourg?
Yes, substance is critical for treaty/participation benefits. Resident board and functional office are expected.
Does Luxembourg participate in CRS?
Yes, EU country under CRS. Banks and entities report non-resident accounts.
What is the incorporation timeline in Luxembourg?
2-4 weeks after KYC and capital deposit. Name approval and commercial registration are fast; bank account may take longer.
Is Luxembourg suitable for funds and holdings?
Yes, it is #2 globally in funds after the US. SOPARFI and investment vehicles (RAIF, SICAV) are widely used by institutional investors.
How to report a Luxembourg company in Brazil?
Report shareholding in the Brazilian tax return and CBE/DCBE if > US$100K. Participation benefits do not prevent Brazilian CFC rules if control and passive income exist.
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