What It Means to Relocate to Luxembourg for Individuals
Renowned as a safe and stable country with a very high quality of living, Luxembourg definitely attracts high calibre expatriates. Many of those people are under pressure and stress during
an international move and it is quite often difficult for them to carry out all necessary procedures and assignments.
Tips & Advice if You Want to Move to Luxembourg:
Luxembourg is a low tax country for individuals and firms.
The country is small and news travels very fast. That is why reputation matters a lot for banks in the way they operate.
The main spoken languages are Luxembourgish, French, German and Portuguese. English is also widely spoken as well.
Most official documents are written in French and German, although English is increasingly available.
The country is extremely cosmopolitan. As a result social integration is easy.
Tax Regime for Expats
From 1 January 2011, a special tax regime for expatriates is effective. It provides for tax relief in respect of certain relocation expenses incurred. A written application to the
tax authorities is required in relocation to Luxembourg. This special regime as well as tax deductions dramatically reduce the taxable basis of companies seated in the Grand-Duchy.
What Does it Mean to Relocate in Luxembourg for Companies and Funds
Favorable Tax System
Luxembourg is a favoured holding company location. Dividends received from qualifying shareholdings (10% of the share capital at least or an acquisition price of at least €1.2 million) are exempt from tax. Similarly, capital gains arising on the disposal of shares are exempt provided that the shares represent at least 10% of the share capital or if the acquisition price is at least €6 million. Furthemore, all non-qualifying assets (cash or receivables) are subject to an annual net wealth tax of 0.5% only.
Skilled Labour Force
Thanks to widespread commuting, companies and investors locating in Luxembourg benefit of a highly qualified workforce coming not only from Luxembourg but also from Germany, France and Belgium. Employers bearing costs for an employee to move to Luxembourg are exempt from tax to this employee during a 5 year period.
Easy Procedures for Investment Vehicles
Offshore funds may be transferred to Luxembourg without discontinuation of their legal personality. Luxembourg legislation on commercial companies states that any company whose central administration is in the Grand-Duchy shall be considered a Luxembourg company even if it has been incorporated abroad.
Relocating to Luxembourg? Let Hance Law Help You
We will provide our clients with assistance in all aspects of the relocation mission they have entrusted us with. We can expedite their personal relocation as well as the relocation of their employees. We help them to make the transition smoother, easier and quicker and will assist them with all the complicated details in moving into Luxembourg.
Our lawyers have moved to Luxembourg themselves and are internationally minded. As a result, they are trained to make relocation as easy as possible and are even prepared to help you relocate to Belgium, Luxembourg and Cyprus through our corresponding offices.