Luxembourg
Western Europe · LU · 88 treaties
Tax profile
| Corporate income tax | 17% |
| Withholding — dividends | 15% |
| Withholding — interest | 0% |
| Withholding — royalties | 0% |
| VAT / GST (standard) | 17% |
| Personal income (top rate) | 42% |
| Capital gains | 0% |
| Tax system | Worldwide |
| Residency threshold | 183 days |
| Exit / departure tax | Yes |
| CFC rules | Yes |
| Transfer pricing | Oecd Aligned |
| Digital nomad visa | No |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | Implemented |
Tax residency
Easy to leaveWhat makes you a tax resident — and how hard it is to stop being one.
- having tax domicile in Luxembourg (maintains a home in circumstances indicating they will keep and use it)
- having normal/usual place of residence in Luxembourg (actually lives there in non-temporary circumstances)
- stay in Luxembourg exceeding 6 consecutive months, counted retroactively from arrival (even if spanning 2 tax years or interrupted by short absences)
Domicile / deemed-domicile
Luxembourg tax residency is based on domicile or a normal place of residence, but official and professional guidance indicate there are no special exit procedures and residency generally ceases once the person deregisters and no longer has a home or normal/6‑month presence in Luxembourg.
Source: Administration des contributions directes (Luxembourg Inland Revenue) via OECD
Tax treaty network (88)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.