In addition to a geographical and a societal situation particularly adapted to HNWIs, Luxembourg offers many advantages on wealth protection, investment structures and taxation.

HNWI and family office can benefit of the use of financial vehicles like SOPARFI holding companies, Private Wealth Management companies, Securitisation companies, real estate companies, etc.

In terms of taxation, HNWIs can enjoy various tax benefits when they become a Luxembourg resident:

  • no wealth tax
  • no inheritance and succession tax (direct line descendants)
  • maximum tax rate: 41%
  • no capital gains tax: if under 10% and held for at least six months
  • tax on Luxembourg-source interest received: 20% withholding tax (flat rate)
  • tax on Luxembourg-source dividends: 15% withholding tax then standard rate with a 50% allowance
  • tax on life assurance income: nil, if held for at least 10 years
  • VAT on motor vehicles: 17%
  • a wide range of treaties to prevent double taxation (+- 70)
  • no CFC rule, which means that the Luxembourg residents are only taxable upon receipt of income from any company they may hold in Luxembourg or abroad
  • attractive impatriate tax regime with the use of the step up in value on participation held before changing one’s domicile

Contact us on +352 277 299 99 or familyoffice@creatrust.com for more information on moving residency to Luxembourg and how to structure Family office wealth/assets using Luxembourg vehicles.

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Contributed by: Creatrust, E: legal@creatrust.com, W: www.creatrust.com