🇱🇺 Luxembourg (SARL)
Luxembourg is a major center for funds and holdings in the EU, with a reduction in corporate income tax rates starting in 2025, resulting in an effective combined tax rate in Luxembourg City (including solidarity surcharge and municipal business tax) of approximately 23.87%. Its participation in tax exemption and treaty networks is commonly used for holding structures, but substance and anti-avoidance requirements are becoming stricter. Tax rates and regulations may be adjusted; please refer to the latest official announcements from Luxembourg.
Luxembourg (SARL) Key conditions at a glance
| Common Company Types | SARL (Limited Liability Company) / SA |
|---|---|
| Corporate income tax | The effective combined tax rate in Luxembourg City is approximately 23.87% (CIT 16% + solidarity surcharge + municipal business tax, to be reduced starting in 2025). |
| Estimated establishment costs | Approximately €1,500–€5,000 (including notarization) |
| Annual maintenance | Annual financial statements, accounting, and auditing based on scale; registered address required. |
| Substance/Reporting Requirements | Economic substance, UBO registration, participation in tax-exempt substance tests; CRS/DAC |
| Suitable for purpose | Funds, holding companies, group financing, IP. |
| Bank account opening | Substance and clear structure are required; KYC is stringent. |
| Recent Changes | Starting in 2025, the CIT rate will be reduced by 1 percentage point. |
Luxembourg (SARL) Key considerations
- To qualify for tax exemptions and treaty benefits, financing structures often require economic substance, increasing the risk of shell structures.
- Notarized establishment and compliance costs are high, and minimum capital requirements should be noted (SARL and SA differ).
- Home country CFC/substance taxation rules may still apply; comprehensive planning is advisable.
Luxembourg (SARL) Application process
- Establish a SARL through notarization and register with the Trade and Companies Register (RCS).
- Register UBO and appoint a manager (gérant).
- Establish necessary substance and open a bank account.
- Annual financial reports and tax filings must be submitted in accordance with regulations.
Luxembourg (SARL) Frequently Asked Questions
Can a Luxembourg company operate with zero substance?
In recent years, anti-avoidance and substance rules have become stricter, and purely shell structures face increased risks when applying treaties and exemptions, typically requiring a certain level of local substance, according to official regulations.
What is the minimum capital for SARL?
The statutory minimum capital for SARL is a fixed amount (higher for SA), and the actual amount is subject to current Luxembourg company law regulations; it is advisable to verify before planning.
How can I verify whether the company incorporation, tax, and compliance regulations for this jurisdiction are up to date?
Tax systems, annual fees, economic substance, and UBO (Ultimate Beneficial Owner) rules in each jurisdiction are frequently amended. Recommendations: ① Check official company registry or tax authority announcements of the jurisdiction (official source links are provided at the bottom of this page); ② Verify the data date indicated on this page; ③ Understand post-incorporation annual filing, accounting, audit, and economic substance obligations—do not focus solely on incorporation fees; ④ Stay alert to agent claims that exaggerate tax savings or suggest no filing or compliance obligations after incorporation, and consult qualified tax/legal professionals for major decisions. This site provides a neutral compilation of public information; always refer to the latest official announcements.
Luxembourg (SARL)Where to search for the official company registration of , and is it public?
| Official registry | RCS Luxembourg (LBR Business and Companies Register) |
|---|---|
| Can the public search the register? | 🔎 Online public search (paid) |
| Notes | Online public search, documents mostly require payment. |
| Official search | Go to official registry search ↗ |
The above is a compilation of public information from official company registration authorities; public search rules and beneficial ownership disclosures are subject to change, so please refer to the latest official regulations. See the comparison table of registration transparency across jurisdictions →
Official sources：Administration des contributions directes (ACD) — Luxembourg · Data date：2026-06。This page serves as a neutral compilation of publicly available information for reference only, notTax / LegalRecommendations are based on the latest official announcements.