Luxembourg: The domicile of choice for financial services - Alfi

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Source: Eurostat Investment Agreements Within the framework of the Economic Union between Luxembourg and Belgium (Union économique Belgo-Luxembourgeoise or UEBL), Luxembourg has signed agreements to promote and mutually protect investments in and from a number of third countries. The aim is to consolidate investment flows and offer investors maximum protection with provisions for adequate compensation in the event of nationalizations, free movement of capital and most-favoured nation status to ensure equal treatment of investors. The agreements also provide an extensive legal framework for the settlement of disputes relating to investments. To date, UEBL has signed agreements with more than 50 countries. 10
Tax 1. Personal Income Tax Personal taxation and social-security regimes for people working in Luxembourg are very competitive compared with those in other European countries. The marginal tax rate at 30 June 2010 was 38.95% and social-security contributions are largely capped. For further information, visit the website of the Luxembourg Direct Tax Authorities www.impotsdirects.public.lu Luxembourg paying agents withhold tax on interest income at a flat rate of 10%. 2. Tax on Companies Over recent years Luxembourg has attracted a number of large international companies and financial institutions, reflecting the appeal of its infrastructure, its multicultural workforce, competitive taxation and business-friendly environment. Company taxation includes corporate profit tax, valued added (sales) tax and social security contributions for employees. 3. Value Added Tax (VAT) – Application of the EU VAT Package Luxembourg VAT rates are currently the lowest in the EU, which has encouraged e-businesses to move their European operations to Luxembourg to gain an edge in pricing. For further information, please consult the website of the Luxembourg Indirect Tax Authorities: www.aed.public.lu 4. Double Taxation Treaties Luxembourg has signed, and continues to sign and apply, a large number of treaties with EU and non-EU countries to avoid double taxation of individuals and companies resident for tax in another country. The complete list of the double taxation treaties signed by the Luxembourg government is available at www.impotsdirects.public.lu Luxembourg tax authorities are also available for consultations on demand with investors. Labour Costs 2008 annual gross salary of €100,000 – Married / 2 children Switzerland Luxembourg Ireland UK Germany Netherlands France Belgium Total cost for employers 106 111 111 110 111 107 149 132 Minus tax/social security employers 6 11 11 10 11 7 49 32 Gross salary (t=100) 100 100 100 100 100 100 100 100 Minus tax/social security employees 25 28 30 33 35 43 29 48 Net employees 75 72 70 67 65 57 71 52 Ratio Net Cost (%) 71 64 63 61 59 53 48 39 Source: ALFI, Luxembourg Where Else, 2010 11
Page 1 and 2: your guide luxembourg: the domicile
Page 3 and 4: table of contents I. Contacts 4 II.
Page 5 and 6: Luxembourg Stock Exchange (Bourse d
Page 7 and 8: Luxembourg is conveniently located
Page 9: EU institutions and agencies headqu
Page 13 and 14: 2. Office Space Steady growth in de
Page 15 and 16: Immigration The new immigration law
Page 17 and 18: Labour, Healthcare and Pensions 1.
Page 19: IV. high standard of living A Cosmo
Page 22 and 23: Club, the Kikuoka Country Club, the
Page 24 and 25: ALFI ALFI (Association of the Luxem
Page 26 and 27: Authorisations by domicile 2.1% 2.5
Page 28: October 2010 alfi | association of

Luxembourg: The domicile of choice for financial services - Alfi

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