183-day physical-presence rule. Top personal rate 42%. Effective corporate rate 24.94%. Updated for 2026.
17% federal CIT + 7% solidarity surcharge on CIT + ~6.75% LU City municipal trade tax = ~24.94% effective in Luxembourg City. Lower in other municipalities. IP box at 5% for qualifying income.
Impatriate regime: 50% income exemption for 8 years (replaced old impat regime 2021). Inbound stock options at 50% rate.
EU member. High effective CIT in capital, but holding/investment company regimes (SOPARFI) make it the EU's top fund-domicile. IP box can drive effective <5% for qualifying R&D.
Our Tax Residency Calculator runs your specific income mix (employment / dividends / capital gains / owner-managed) against every regime, including the Luxembourg special regime where one applies.
Informational only. Not legal, tax, or financial advice. Verify with a qualified advisor before acting.