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Luxembourg

Company Formation and Related Services

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Buying a European shelf company with VAT number

Whenever you need to start doing business immediately in a European country and you need a company with a VAT number, you don’t have to wait for the bureaucratic procedures.

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We encourage you to contact our partner law firms in Bucharest: Rolegal and E&C, both part of our legal network.

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Tax Minimization Structures

BridgeWest is specialized in special corporate structures designed for tax minimization. No matter where you want to incorporate your company, you will need to consider how you can legally minimize costs.

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Doing Business in Luxembourg

August 23, 2011, 6:50 pm
BridgeWest

 

Country profile

Luxembourg is a constitutional monarchy, that has gained its independence from Netherlands in 1839. Its capital is set in Luxembourg city, where 90,000 people live. 

The population of the entire country is 511,840, who are living on 2,586 kilometers square of land, bordered by Belgium, Germany and France. Luxembourg inhabitants speak Luxembourgish, German and French. 

As far as the form of government is concerned, Luxembourg is a hereditary Grand Duchy with a unicameral parliamentary system. Its currency is euro since 1999.

Other cities in Luxembourg include Esch-sur-Alzette (28,200 people), Differdange (19,000 people), Dudelange (17,800 people).

Luxembourg is a founding member of the European Union (EU) and an active member of NATO. The nation is also part of the Western European Union and the United Nations.

Statistics

Luxembourg has one of the world’s highest GDP per capita. However, the inflation rate was 2.9% in July 2011, with a 5.6% unemployment rate. At the end of June 2011, there were 13,718 resident persons without a job in Luxembourg. More and more immigrants are hired for different jobs, allowing the unemployment rate among the residents to raise. 

Main industries

Luxembourg deals with a number of domains, from banking and financial services to steel and chemicals. Its main export partner is Germany, while Belgium is the one that brings almost 30% of the imports.

Luxembourg city focuses mainly on banking industry, even though foreign employees are also more numerous than residents in this field.

Salaries

Luxembourg offers high standards of life, reflected in the employees’ income. An average salary in Luxembourg is 3,000 EUR. The minimum wage that an employee from Luxembourg can be paid according to the law is 1,750 EUR.

Main corporate taxes

In Luxembourg, the corporate income tax rate varies according to the income and a 5% increase is applied as an unemployment fund contribution. Therefore, a company with an income below 15,000 EUR is subject for 21% corporate tax, while a company with an income that exceeds 15,000 EUR has to pay a 22.05% corporate tax. Usually, the Municipal Business Tax of 6.75% is also added to the income tax rate.

In Luxembourg, the standard VAT rate is 15%, but there are some exceptions.  A company with activity in management and safekeeping of securities is subject to a 12% VAT rate, while a 6% VAT rate applies for gas and electricity and only 3% for food products, books, newspapers, hotels and radio and TV broadcasting services.

The dividend tax rate is 15% of gross dividends in Luxembourg.

Since 2011, the crisis contribution of 0.8% will be available for all income, including wages, rent, dividends and other types of income.

A 0.6% monthly penalty is applied for late payment of taxes in Luxembourg.

BridgeWest offers assistance for setting up a company in Luxembourg, including virtual office and other related services.

 




Open Business in Luxembourg
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Company Formation in Luxembourg

Luxembourg


Any person or legal entity, national or foreign, can be a shareholder or a director in a [More]

Lawyers in Luxembourg

Luxembourg

BridgeWest provides a wide range of legal services in Luxembourg through our affiliated Luxembourg lawyers and Law Firms. We are mainly specialized in the main aspects of Luxembourg Commercial Law, including Company Formation, Debt Collection, Com ... [More]