Jurisdictions  /  Luxembourg

Luxembourg, and what it is actually good for.

Europe's deepest fund and holding ecosystem, an ordinary corporate tax system, and 88 treaties. It is the right answer for investment structures far more often than for a single operating company — which is the distinction this page is built around.

Luxembourg at a glance

The numbers people ask for on the first call. All current for 2026; a further one-point cut to the corporate rate has been announced for 2027.

Legal forms used
S.à r.l. · S.A.
Law of 10 August 1915
Minimum share capital
EUR 12,000 / EUR 30,000
Fully subscribed at incorporation; since 2 June 2026 the cash payment may be deferred up to 12 months
Register
RCS Luxembourg
Filings via Luxembourg Business Registers
Aggregate corporate tax rate
23.87%
Luxembourg City, on income above EUR 200,000
Participation exemption
10% or EUR 1.2m
Article 166 LIR; EUR 6m for capital gains; 12-month holding period
Minimum net wealth tax
EUR 535 – 4,815
By total balance sheet
Treaties in force
88
Note: no treaty with Australia
Incorporation
2–4 weeks
From a complete KYC file to RCS registration
Start here if

You need a company in Luxembourg

An operating company, a subsidiary, or the first entity of a group. We tell you which legal form fits and what the running cost really is before anything is incorporated.

Start here if

You are building a holding structure

A SOPARFI sitting above operating subsidiaries, receiving their dividends and holding the eventual exit. This is the majority of what we do — and sometimes the answer is a Dutch B.V. instead.

Start here if

You are raising or deploying capital

A fund, a co-investment platform or a vehicle per deal. The first decision — regulated or unregulated — sets most of the cost, and it is hard to reverse after launch.

The vehicles

One early choice drives most of the cost: regulated or not. A SOPARFI or an SCSp runs lean. A SIF, RAIF or SICAR brings an AIFM, a depositary, an administrator and an auditor.

How to choose between them →

Vehicle
Form
Regulation
Typical use
SOPARFI
S.à r.l. / S.A.
Not a fund
Holding participations, deal SPVs, group financing
SCSp
Special limited partnership
AIFM rules may apply
PE, venture and real-asset funds; carry structures
RAIF
Corporate or partnership
Via an authorised external AIFM
Alternative funds needing speed to market
SIF
Corporate or partnership
CSSF-supervised
Diversified funds for well-informed investors
SICAR
Corporate or partnership
CSSF-supervised
Risk capital only — venture and private equity
SPF
S.à r.l. / S.A.
Not a fund
Passive private wealth; cannot hold trading activity

Fund vehicles are open to well-informed investors — a statutory category: institutional and professional investors, or others who confirm their status in writing and invest at least EUR 100,000.

Luxembourg is not offshore

People arrive here searching for an offshore company and find a jurisdiction that taxes at 23.87%. That is not a disappointment — it is the whole mechanism.

Luxembourg had an exempt vehicle once: the Holding 1929. It paid almost no tax, and because it paid almost no tax it was not a treaty resident and could not use the network it existed to reach. The European Commission found it incompatible with the common market in 2006 and it was gone by the end of 2010.

The SOPARFI that replaced it is a fully taxable, ordinary company — which is precisely why its dividends and exit gains can be exempt under Article 166 and why its treaty access holds up. If you need a structure that works only as long as nobody examines it, we are the wrong firm. How the SOPARFI works →

Is Luxembourg right for what you are building?

Thirty minutes, no charge. If the answer is a Dutch B.V. or a plain company at home, we will say so on the call.

Arrange a conversation

The Netherlands

A 5% participation threshold with no holding period, 98 treaties, and EUR 0.01 of capital. Often the better answer for a corporate holding.

Luxembourg vs Netherlands

The four rows that decide most cases, treaty rates by country, and four routes where the obvious answer is wrong.

EU holding structures

How the layer works in general, what it has to satisfy after ATAD and the PPT, and why offshore stopped working.