For individuals

The Grand Duchy of Luxembourg has always attracted many immigrants, either for professional reasons or simply for the various advantages they can gain from it.
In addition to its strategic location in the centre of Europe, political and social stability, Luxembourg offers an attractive legislative and tax framework, a multicultural environment, and a high quality of life.

For individuals, the advantages related to residency are numerous.
Certain conditions must be met to be considered a Luxembourg resident:

• Have a legal residence in Luxembourg
• Physically reside in the Grand Duchy for most of the year
• Be able to prove a minimum income allowing for living in the Grand Duchy (employment, pension, wealth, etc.)

Luxembourg has several appealing aspects from a tax perspective:

• A progressive tax rate from 0% to 42% (maximum) depending on income levels
• Low tax progression
• Low indirect taxation: VAT of 3%, 8%, 14%, and a maximum of 17%, low vehicle tax, and no registration tax…
• Reduced registration and VAT rates on real estate acquisition (main residency)
• A flat withholding tax of 20% on savings income
• Possibility of capital gains tax exemption on shares or participations
• Almost zero inheritance tax
• The abolition of wealth tax since January 1, 2006

• Low social contribution rates of around 25% (combined employee and employer shares) providing comprehensive social coverage as well as a high certainty and level of pension at retirement compared to other OECD countries
• Inheritance rights provide exemptions, mainly concerning the share going to direct heirs and the share of the surviving spouse who has children in common with the deceased
• A guaranteed minimum wage and high living standards: the gross social minimum wage for an unqualified employee aged 18 and older is approximately €2,570.93 as of September 1, 2023. It is increased by 20% for qualified employees

Beyond fiscal and social aspects, Luxembourg is:

• A cosmopolitan country where 170 different nationalities reside, represented by numerous communities (Portuguese, French, Italian, Belgian, German, Anglo-Saxon, Nordic, Brazilian, etc.)
• A multilingual country: the linguistic situation in Luxembourg is characterized by the practice and recognition of three languages: Luxembourgish, French, and German
• A multicultural country: the result of the successful coexistence of different populations, perfectly integrated into Luxembourgish life.
  The successful coexistence of these different populations, perfectly integrated into Luxembourgish life, contributes to the country’s multicultural richness.