How wealth tax works in Luxembourg
Luxembourg does not levy a general net wealth tax on natural persons. Savings, securities, private company shares, crypto assets, and foreign assets are not hit by a Luxembourg annual wealth levy just because you own them.
The corporate side is different. Opaque Luxembourg companies and branches can be subject to net wealth tax on their net assets, with a rate of 0.5% up to EUR 500 million and 0.05% above that amount.
If your real concern is property ownership, Luxembourg also has transfer costs and local property taxation. The standard real estate purchase burden is 7% in registration and transcription fees, although the Bellegen Akt credit can reduce the cost for an eligible main home.
Tax rates at a glance
- Personal net wealth tax
- 0%Abolished
- Corporate net wealth tax
- 0.5% / 0.05%
- Annual wealth filing
- No
- Real estate purchase tax
- 7%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsFamily officesFoundersHigh earnersCross-border holders
Watch out for
- No personal wealth tax does not mean no reporting. Banks and brokers can still ask for source-of-funds and residency documents.
- Corporate groups should not ignore net wealth tax, even if their trading profits are modest or offset by other reliefs.
- Real estate costs can be material even without a wealth tax, especially on acquisition or transfer.
Frequently asked questions
Does Luxembourg have a wealth tax?
Not for individuals. Luxembourg abolished net wealth tax for natural persons in 2006, but companies can still owe net wealth tax.
Are savings and investments taxed as wealth in Luxembourg?
Not under a general personal wealth tax. But the income or gains from those assets can still be taxed depending on the asset and holding period.
Is Luxembourg good for asset holding?
It can be, because there is no personal wealth tax. Still, company structure, inheritance, dividend taxation, and foreign tax residence can change the result materially.