Grand Duchy of Luxembourg is located in Western Europe, and has a territory of 2586.4 square kilometers. Luxembourg borders Belgium, France and Germany. The capital city of Grand Duchy of Luxembourg is Luxembourg, the location of key government institutions. Luxembourg has a population of 645,4 thousand people.
Corporate taxation, VAT taxation, Personal taxation
- Corporate income tax - Standard rates from 15% up to 17%. Tax returns are filed on an annual basis. Advance income tax payments are made on a quarterly basis
- Municipal business tax rate - from 6.75% up to 10.5%. Advance municipal business tax payments are made on a quarterly basis
- Dividend withholding tax - Standard tax rate 15%
- Interest withholding tax - Standard tax rate 0%
- Royalties withholding tax - 0%
- Capital gains tax - Standard rates from 15% up to 17%
- VAT - Standard tax rate 17% or the reduced rates of 3%, 8%, 14% or tax exempt. Tax returns are filed on a monthly, quarterly or an annual basis
- Personal income tax - from 0% up to 45.78%.
The following are the most common types of companies to incorporate a company in Luxembourg as:
- Limited liability company (Société à Responsabilité Limitée - S.a.r.l.)
- Public limited company (Société Anonyme - SA)
- Simplified public limited liability company (Société par Actions Simplifiée - SAS)
- General partnership (Société en Nom Collectif - SNC)
- Limited partnership (Société en Commandite Simple - SCS)
- Partnership limited by shares (Société en Commandite par Actions - SCA)
- Cooperative company (Société Coopérative - SCOP)
- European company (Societas Europaea)
- Branch office (Succursale).
Official currency of Luxembourg is euro (EUR).
Economy of Luxembourg is primarily based on financial, steel and idustrial sector.
Tertiary sector makes up almost 86% of the GDP of the country, followed by industry sector at 12% and tourism at 8.7%.
Imports of Luxembourg consist of energy, mineral fuels, consumer goods, cars, medicaments, food and beverages. Exports of Luxembourg consist of iron blocks, rubber tires, iron sheet piling, steel products, aluminium cars, broadcasting equipment, valves, textiles, paper, dairy, eggs, honey.
Primary trading partners of Luxembourg are Belgium, Germany, France, Netherlands, Italy, United Kingdom, China and United States.
The GDP of Luxembourg grew by 5% in 2021 and amounted to USD 86.71 billion.