Luxembourg CT & VAT Rates 2023-06-27T11:39:04+00:00

Luxembourg CT & VAT Rates



Why? Luxembourg is the original ‘tax haven’ within the European Union with its companies having been long employed within tax planning ‘sandwiches’ particularly in conjunction with Dutch NV and BV companies. The reason it is so popular especially for multi-nationals is that local companies with the correct fiscal election – In Luxembourg there are only two major companies; sociétés à responsibilité limitée (Sàrl’s) and sociétés anonyme (SA’s) – can be very tax efficient. In addition, Luxembourg is a founder member of the EU and by definition will fully benefit from all key EU Directives and Regulations (see below) not to mention its remarkably developed tax treaty network.

The advantages of using a Luxembourg company are many but include:


  • Pro-business environment;
  • Highly respectable and credible jurisdiction;
  • Highly educated population;
  • Highly developed corporate and general law;
  • Excellent communications with the rest of Europe including close geographical proximity to Belgium, The Netherlands, Germany and France;
  • Active and positive member of the European Union;
  • Fully benefits from all EU Directives and Regulations;
  • It is one of the initial 11 Euro zone countries;
  • Excellent double taxation treaty network especially with the Netherlands;
  • Few scandals;
  • Luxembourg is the base for Europe’s largest international financial services centre (IFSC) with Dublin coming in a close second;
  • Very sophisticated banking and corporate law together with a large ‘pool’ of highly trained multilingual professionals;
  • SOPARFI’s are fully covered by Luxembourg’s tax treaties and can also avail of the EU Parent/Subsidiaries’ Directive;
  • ‘Bearer’ shares can be provided for SA companies;
  • Luxembourg’s banking community have maintained much of their confidentiality code despite recent attacks on its veracity by Germany. In addition, bank account facilities can be maintained outside of the Luxembourg jurisdiction

Double Taxation Treaty Network

The key benefit is that Luxembourg has an extensive and very favorable tax treaty network with most European countries despite its favorable holding company structures especially with the Netherlands and its NV and BV companies.

For Whom?  Luxembourg companies are not for everyone as they are expensive to both set-up and maintain. However, for the right often multi-national client they offer unparalleled advantages.


(Strictly Confidential No Obligation)

    SCF Legal & Corporate Management Services Limited

    Address: 250 Kings Road, Chelsea, London SW3 5UE

    Telephone: 020 7731 2020   Email:

    Registration number: 05462416



    The SCF International  specializes in providing accountancy and management services for UK and Irish limited companies, UK & Irish company management services including the provision of (where necessary) domestic directors, domestic company secretaries, registered office address services, trading offices, value added tax (VAT) registration and management, payroll (Pay as You Earn PAYE), opening up and managing UK or Irish bank account facilities, raising  invoices and any and/or all other services required to establish a bone fide managed and controlled UK or Irish limited liability company.

    Our in-house team of legally and accountancy qualified experts can also provide advice on current UK & Irish tax laws/provisions including anti-avoidance provisions, EU directives and regulations, the impact of BREXIT for both UK and EU based businesses and other relevant. In addition, where required the SCF Group can also set-up and arrange the management of companies in tax efficient EU based jurisdictions such as Cyprus, Luxembourg or Malta or indeed any jurisdiction in the world including those in the Middle and Far East.

    Property de-enveloping services – In conjunction with leading UK firms of solicitors SCF can help transfer companies currently held by what were known as ‘offshore’ companies into either more tax efficient UK companies or directly back into the names of individual beneficial owners’ often without attracting stamp duty land tax (SDLT) but still avoiding the advance tax on enveloped dwellings (ATED).

    Our fiscal migration and tax planning department is operated by qualified lawyers and accountants and can advise both domiciled and non-domiciled individuals on how to mitigate their individual and corporate tax exposure be it in the UK or abroad. Our legal & business department can provide specialized advice on all domestic and international tax planning issues but also upon ‘key’ issues such as asset protection be it in the form of trusts and private interest foundations (PIF’s). In particular, SCF can provide advice to those intending to relocate to the UK on how to do so in the most tax efficient way.