How to set up a company in Luxembourg: 8 steps and costs
Eight steps separate the project from the registered company: legal form, name, capital, deed, RCS, RBE, business permit, VAT. This guide gives the real budget and timeline of each.
Insights & analysis
Insights: understanding Luxembourg fiduciary, tax and structures
Clear, factual analysis on accounting, tax, company formation, holdings and funds in Luxembourg, by a licensed accounting firm (auth. 10077274). Three clearly separated content types: dated analysis, maintained reference guides, and service pages.
Dated analysis
Merger by absorption in Luxembourg: steps and timing
A merger by absorption in Luxembourg transfers the entire estate of the absorbed company without liquidation, but it does not carry over its tax losses. That gap between legal continuity and tax discontinuity drives the order of operations.
Conversion of legal form in Luxembourg: SARL to SA
Converting the legal form of a Luxembourg company does not dissolve it and does not create a new legal person: the RCS number, the contracts and the loss carry-forwards survive. What kills the operation is a missing report or a stale asset and liability statement.
Tax classes in Luxembourg: 2026 scale and the class U
Tax classes in Luxembourg govern how the scale is applied, not the scale itself: on an identical income, the gap between class 1 and class 2 comes from the computation method alone. The tariff did not move in 2026, and the single class U goes to the vote on 27 October 2026.
3% housing VAT in Luxembourg: eligibility, cap and refund
Housing VAT in Luxembourg brings creation and renovation works down to 3% where the dwelling serves as a main residence, capped at EUR 50,000 per dwelling. Approval must be filed before works start: after that, only the refund route is left.
Tax statute of limitations in Luxembourg: 5 and 10 years
The tax statute of limitations in Luxembourg is five years, never less than ten where an additional assessment follows an incomplete or inaccurate return. Records, however, must be kept ten years: that asymmetry is the real issue.
Shareholder current account in Luxembourg: the rules
A shareholder current account in Luxembourg is neither a capital contribution nor a dividend: it is a debt or a receivable that must carry arm's length interest and be split by maturity. Two rules govern it: article 164(3) L.I.R. and the 15/85 debt ratio.
Depreciation useful lives in Luxembourg: tax rules
Depreciation useful lives in Luxembourg are set by no legal table: the business determines each asset's usual useful life, and the tax balance sheet must follow the commercial one. Declining balance stays capped at 30 %.
Meal vouchers in Luxembourg and benefits in kind
Meal vouchers in Luxembourg are exempt up to EUR 12.20 per voucher since tax year 2024, for a face value of EUR 15. The employee contribution still has to be withheld, and each voucher attached to a day actually worked.
Company car benefit in kind in Luxembourg: rates
Company car benefit in kind in Luxembourg is computed on the new vehicle value, never on the leasing rent. Three rate grids coexist, and the date that separates them is not the contract date.
Fiscal unity in Luxembourg: conditions and effects
Fiscal unity in Luxembourg offsets a group's tax results. The article 164bis regime is won or lost on three points: shareholding, financial year-end dates and the date of the request.
Investment tax credit Luxembourg: 12% or 18% rates
The investment tax credit in Luxembourg reduces the tax bill itself, not the taxable base: 12% of acquisition value since tax year 2024. A certified digital transformation or ecological transition project lifts the rate to 18%.
Analysis archive
- Tax loss carry-forward in Luxembourg: 17 financial yearsTax
- Retirement in Luxembourg: conditions and calculationPayroll & HR
- Finance lease accounting in LuxembourgAccounting
- Designated worker Luxembourg: duty and trainingPayroll & HR
- Luxembourg social parameters: 2026 rates and limitsPayroll & HR
- Luxembourg minimum wage 2026: EUR 2,771.33 gross per monthPayroll & HR
- ViDA in Luxembourg: the VAT timetable to 2030Tax
- Approved statutory auditor or commissaireAccounting
- Annual accounts in a foreign currency in LuxembourgAccounting
- Financing company substance in LuxembourgStructuring
- Luxembourg interest limitation rule: article 168bisStructuring
- Luxembourg tax allowance for delaying retirement: AMVPPayroll & HR
- Luxembourg start-up tax credit: where the bill standsTax
- Luxembourg withholding tax on directors' feesGovernance
- Luxembourg administrative dissolution without liquidationLiquidation
- Paying up SARL share capital in Luxembourg: 100%Company setup
- E-invoicing grant in Luxembourg: 70% of the projectGrants
- Peppol directory in Luxembourg: how to registerInvoicing
- VAT one-stop shop in Luxembourg: OSS for e-commerceTax
- Luxembourg VAT return frequency: the three regimesTax
- Luxembourg VAT exemption threshold: the €50,000 ruleTax
- Student job pay in Luxembourg: contract and 80 % of SSMPayroll & HR
- Luxembourg income tax return: who files, when and howTax
- Politically exposed person in Luxembourg: PEP rulesCompliance
- Which accountant for an SME in Luxembourg? Criteria 2026Accounting
- KYC documents for company formation in LuxembourgCompliance
- Source of funds and source of wealth in LuxembourgCompliance
- Register of beneficial owners in Luxembourg: RBE filingCompliance
- Quarterly tax advances in Luxembourg: the calendarTax
- Form 500 corporate tax return in LuxembourgTax
- Late filing of annual accounts in LuxembourgAccounting
- Company size thresholds in LuxembourgAccounting
- Intra-group loan interest accruals in LuxembourgAccounting
- Impairment of participations in LuxembourgAccounting
- Accounting for dividends received in LuxembourgAccounting
- Dividend withholding tax in Luxembourg: 15% and reliefTax
- Net wealth tax reduction in Luxembourg: 5-year reserveTax
- Participation exemption opt-out in LuxembourgStructuring
- Participation exemption recapture rule in LuxembourgStructuring
- Municipal business tax in Luxembourg: rates and calculationTax
- Luxembourg corporate income tax rate: 14%, 16%, 23.87%Tax
- Minimum net wealth tax Luxembourg: EUR 535 to 4,815Tax
- B2B e-invoicing Luxembourg: what the bill providesInvoicing
- Odoo Community or Enterprise: which edition in LuxembourgTools & systems
- VAT reverse charge Luxembourg: cases and setupTax
- Mandatory invoice details in Luxembourg: full listInvoicing
- Standard chart of accounts Luxembourg: PCN structureAccounting
- FAIA Luxembourg: the audit file the AED can requestAccounting
- E-invoicing Luxembourg: public sector obligationsInvoicing
- Check an EU VAT number: what VIES really provesTax
- Cross-border remote work: the two 2026 thresholdsPayroll & HR
- ATAD and substance: five costly mistakesStructuring
- Luxembourg VAT 2026: what actually changesTax
Reference guides
Annual accounts and RCS filing: what Luxembourg law requires
Every Luxembourg company files annual accounts with the RCS through the eCDF platform within seven months of year-end. Deadlines, LuxGAAP format and penalties explained.
eCDF: filing structured-format accounts in Luxembourg
The eCDF format is mandatory for filing annual accounts and tax returns. How it works, the standard chart of accounts (PCN) and key pitfalls.
SARL or SARL-S: which form to start with in Luxembourg?
The SARL-S lets you start with €1 of capital, without a notarial deed, reserved for individuals. The classic SARL offers more flexibility. A side-by-side comparison.
SOPARFI vs SPF: comparing the two holding vehicles
The SOPARFI is a commercial company usable internationally with participation exemption; the SPF is reserved for passive private-wealth management. The key differences.
ATAD substance: five checkpoints for a Luxembourg structure
Without real economic substance (directors, decisions, local accounts), a Luxembourg holding risks losing tax benefits. ATAD requirements in practice.
RAIF, SIF or SICAR: which fund vehicle in Luxembourg?
The RAIF is not approved directly by the CSSF but through an AIFM; the SIF and SICAR are supervised. A regulatory, tax and operational comparison.
Related services
Voluntary liquidation of a company: the steps in Luxembourg
Dissolution, appointment of the liquidator, liquidation auditor's report, then closure: the sequence of a voluntary liquidation and its timeline.
How much does an accountant cost in Luxembourg? Pricing benchmarks
Self-employed, company, SME or group: accounting fee ranges in Luxembourg by turnover and transaction volume, with a simulator.
Switching accountant in Luxembourg: how to transfer your file
Recovering trial balances, ledgers, eCDF access and filing continuity: how to switch firm without disruption, even mid-year.
Our expertise hubs
Company setup & lifecycle
Set up, establish and run your Luxembourg company, without bouncing between providers.
Accounting, accounts & closing
LuxGAAP bookkeeping, reconciliations, closing work, annual accounts, eCDF validation and RCS filing. For SARL, SARL-S, SA, holdings, SOPARFI, SMEs and groups.
Tax, VAT & payroll
Tax returns, VAT, payroll and tax incentives, on time, at the right rate.
Holdings, SOPARFI & wealth
Structuring participation holding and private wealth: SOPARFI, SPF, holding, family office.
Financial direction (CFO)
An outsourced CFO: reporting, management control, treasury, forecasting.
Investment funds
Structuring a fund and keeping its books: RAIF, SIF, SICAR, SCSp, valuation inputs, AIFM support.
Governance & directorship
Directors, substance and corporate secretarial for solid Luxembourg governance.
Regulatory compliance
AML/KYC, DAC6, CRS/FATCA, ESG/CSRD, MiCA: staying compliant in a demanding framework.
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