European Economic Interest Grouping in LU
The European Economic Interest Grouping LU (EEIG) is a legal structure conceived for transnational cooperation between entities of the European Union. It can be used to carry out commercial, industrial, agricultural, craft activities or for liberal professions. The EEIG Luxembourg must comprise at least two different companies or legal entities with their head office from different member states. If its members are natural persons, they must have an activity within the EU but do not need to have their nationality or domiciliation in the EU.
Regarding the tax aspect, the Luxembourg EEIG enjoys fiscal transparency and is not subject to the corporate income tax. However, it is subject to the VAT on its commercial activities, the communal business tax, and each member of the EEIG is personally taxable.
Members enjoy a large freedom when it comes to the organization of their contracts or the internal management of the group. They also keep their legal independence in conducting their business. The purpose of the EEIG is not necessarily to transfer the whole activity of the partners but to put in common an economic interest. The activity of the group should relate to the economic activity of its members.
The EEIG offers enterprises a reference framework for co-operation under the European Union legal system. It fosters and improves the economic activity of its diverse members, especially for SMEs interested in participating in European-based projects. Thanks to its flexibility, the EEIG empowers its members to respond immediately to possible changes in the co-operation conditions.