Luxembourg offshore company incorporation

The creation of a company in Luxembourg requires at least one shareholder and one director regardless of their nationality or residence. Depending on the legal form chosen, there is a capital amount to be paid. For example, for a public limited liability company (Sarl), the minimum is €12,000.

By creating a company in Luxembourg, you will benefit from the lowest VAT in the European Union (3 to 17%).

Offshore companies in Luxembourg that carry out commercial activities with a profit not exceeding €175,000 per year, pay a corporation tax of 15% and 17% if the profits exceed €200,000 per year. 

Luxembourg has created a fund for the unemployed where all companies pay 7% of their income.

The Grand Duchy of Luxembourg is considered the second country in the world after the United States to host investment funds. And this is due to the strength of their banking sector as well as the ease of obtaining regulation for such activities. More information (Link hacia el blog).

Holding companies benefit from an exemption on capital obtained from branches they have abroad.

The different legal forms that an offshore company can take in Luxembourg are:

• Public limited company (SA), Public limited liability company (SARL), General Partnerships (SNC), Civil Company (SC), SOPARFI

Luxembourg, officially called the Grand Duchy of Luxembourg (in Luxembourgish, Groussherzogtum Lëtzebuerg; in German, Großherzogtum Luxemburg), is one of the twenty-seven sovereign states that make up the European Union. It is a landlocked state, without access to the sea, surrounded by Germany, Belgium, and France.

The government of Luxembourg is a unitary parliamentary constitutional monarchy, making it the only sovereign Grand Duchy at present. The country has a highly developed economy, boasting one of the highest gross domestic products per capita in the world, according to the World Bank and the International Monetary Fund.

Luxembourg is a member of the European Union, the North Atlantic Treaty Organization, the Organization for Economic Co-operation and Development, the United Nations, and Benelux, which reflects its political orientation in favor of economic, political and military integration. Its capital, Luxembourg, is home to many institutions and agencies of the European Union.

Luxembourg has a liberal system based on the stability of political ideas. The creation of companies is not subject to any prior administrative control. Instead, the law subjects the exercise of a certain number of professions to a request for Trade Authorization which must be obtained from the Ministry of Middle Classes, based on diplomas and/or professional experience.

The most common companies are sole proprietorships and LLCs. However, a more in-depth analysis reveals the possibility of obtaining specific tax advantages.