Luxembourg Local Reference INFOrmation
Find out about inheritance tax for residents and non-residents of Luxembourg. Also information on wealth tax, land and property tax and capital duty payable in Luxembourg.
Inheritance TaxLuxembourg residents are subject to inheritance tax (droits de succession) which applies to their Luxembourg financial investments and properties, as well as their worldwide financial investments. The inheritance tax varies from zero percent for direct ascendants or descendants to 48 percent for non-relatives. The rate is variable and progressive based upon the value of the succession. Non-residents are subject to a specific inheritance tax or estate duty (droits de mutation) on property based in Luxembourg. The rates are the same as those paid by residents except the minimum rate for direct heirs is two percent.
Other TaxesWealth taxWealth tax for individuals was abolished on 1 January 2006. However, a 0.5 percent wealth tax is charged on the net asset value of a company (with a minimum of €25). Land and property taxLand and property tax is low in Luxembourg compared to its neighbouring countries. The tax on land and property owned by individuals and companies is charged by the communes. Capital dutyThe capital duty applicable to companies was abolished on 1 January 2009 and replaced by a fixed duty of €75. However, if in case of capital increase by contribution in kind of a property (whether land or building), a 1.1 percent tax applies. Further Information
Information supplied by Tax Advisor, Françoise Naramski, of
Prisma Consulting SARL 0212ma |
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