The Grand Duchy of Luxembourg
is one of the richest countries in the world and a solid financial hub that offers a broad range of opportunities for foreigners interested in developing their portfolios. There are numerous tax benefits in Luxembourg
for all sorts of businesses where the holding company
as it is named, makes no exception. Opening a company in Luxembourg
means taking advantage of a stable and extremely appreciated business environment among many others. For a proper start on the market, foreign investors are advised to talk to our team of company formation specialists in Luxembourg
to receive complete support in company incorporation
What are holding companies in Luxembourg?
Holding companies in Luxembourg
are special corporations with at least one shareholder, registered with a local office, an appointed agent, and participation in other local or foreign companies. This type of company can perform all kinds of operations like collecting royalty income, borrowing and lending money or several commercial activities.
What are the advantages of a holding company in Luxembourg?
The taxation system
is among the benefits of a holding company
and among the reasons why foreign investors decide for such type of company. The following advantages of a holding company in Luxembourg
can help investors decide easily for this form of business in the Grand Duchy:
- • a SOPARFI is subject to a reduced withholding tax or income tax exemption on dividends;
- • there is no withholding tax on interest payments made in Luxembourg;
- • such a company can be managed by a single director which can also be the shareholder;
- • EUR 30,000 is the minimum share capital for a holding company and foreigners can use any currency they want;
- • holding companies in Luxembourg do not need to pay capital gains taxes;
- • if the company is not subject to commercial activities, information about the owners will be private.
Audit conditions for holding companies in Luxembourg
Small holding companies in Luxembourg
need to have a statutory auditor which can be legal entities or private persons. As for large enterprises, these are subject to independent auditors designated in a general meeting of the shareholders of the holding company. In this case, the auditor is chosen if the net turnover of the holding company
exceeds EUR 6,25 million.
As a short conclusion, holding companies
can be registered in a fast and private manner with just one stockholder and can benefit from several tax exemptions. Please feel free to contact
our team of company formation specialists in Luxembourg
for extra details in this matter.