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Why Luxembourg
Luxembourg has long been one of the primary financial centres in Europe. The jurisdiction is widely used by multinational groups and investment funds due to its participation exemption regime, extensive tax treaty network and established legal framework for corporate structures.
Core Structuring Capabilities
Advisory and implementation of cross-border corporate structures for international business groups operating in Europe.
  • Participation Exemption
    Dividends and capital gains from qualifying subsidiaries may benefit from participation exemption.
  • Investment Platform
    Luxembourg structures such as SOPARFI and investment vehicles are widely used for cross-border investments.
  • EU Legal Framework
    Access to EU directives including the Parent-Subsidiary Directive and Interest & Royalties Directive.
  • International Financial Centre
    Luxembourg is one of the largest hubs for international investment funds and holding structures.

Investment Structures in Luxembourg

Luxembourg is widely used as an investment platform for cross-border investments, project financing and international holding structures.
  • Overview of investment structures commonly used for international projects and corporate groups.
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  • Special purpose vehicles used for acquisitions, joint ventures and cross-border investment projects.
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  • Luxembourg is one of the leading European jurisdictions for investment funds and asset management structures.
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Tax & Regulatory Environment

Luxembourg provides a well-developed legal and tax framework for international holding companies and investment platforms. Its participation exemption regime, broad tax treaty network and stable regulatory environment make it one of the leading jurisdictions for European corporate structures.

This section outlines the key tax principles and regulatory considerations relevant to Luxembourg holding structures.
  • Overview of the corporate tax system in Luxembourg, including participation exemption rules, taxation of dividends and capital gains, and the practical tax environment for holding companies.
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  • Explanation of substance requirements and governance expectations for Luxembourg companies, including directors, local presence and operational substance within EU corporate structures.
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  • Comparison of two leading European holding jurisdictions, including tax treatment of dividends, participation exemption regimes and typical use cases within international corporate groups.
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European Structuring Jurisdictions
Two of the most widely used jurisdictions for international holding structures in Europe.
Luxembourg
European hub for holding companies and investment structures used by international business groups and investment funds.
Explore Luxembourg
Netherlands
Leading jurisdiction for international holding companies and cross-border corporate ownership structures.
Explore Netherlands
Luxembourg vs Netherlands
Comparison of the two most widely used European holding jurisdictions on tax treatment of dividends, participation exemption and substance requirements
Compare Jurisdictions
Insights on European Corporate Structures
Analysis and practical guidance on corporate structuring in Luxembourg and the Netherlands.
Comparison of two leading European jurisdictions used for international holding companies and investment platforms.
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How EU Holding Structures Work
Overview of typical ownership and investment structures used by international groups operating in Europe.
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Key aspects of corporate taxation, participation exemption and dividend flows in Luxembourg holding structures.
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Luxembourg remains one of the most widely used jurisdictions in Europe for international holding companies and investment structures. The country combines a stable legal system, a well-developed corporate framework and an extensive network of double taxation treaties. These features make Luxembourg a natural location for structuring ownership of European subsidiaries, cross-border investment platforms and international corporate groups.

Luxembourg holding companies, including structures such as SOPARFI, are commonly used to centralise ownership of operating companies across the European Union. The participation exemption regime, together with EU directives governing dividend and interest flows between member states, allows multinational groups to organise capital flows within Europe in a predictable and transparent manner.

For international founders, investors and corporate groups expanding into Europe, Luxembourg frequently functions as a strategic holding jurisdiction within a broader EU corporate structure. In many cases it is used together with other European jurisdictions, such as the Netherlands, to create efficient ownership platforms for managing subsidiaries, investments and cross-border corporate operations.
Discuss Your European Structure
We advise on holding structures, corporate formations and cross-border ownership platforms involving Luxembourg and the Netherlands.

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