Accounting for lawyers in Luxembourg, the firm and client funds under control.
Accounting for lawyers covers practice bookkeeping, rigorous tracking of client funds (third-party accounts) and tax and social obligations, in line with the Bar's professional-conduct rules.
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Law firm accounting in Luxembourg is the bookkeeping of a lawyer or law firm that combines operating accounting, covering fees, costs and VAT, with the separate tracking of client funds. This tracking follows the professional rules of the Luxembourg Bar, so that the firm's own resources and client funds are never mixed.
Accounting and client-fund segregation obligations framed by the internal regulation of the Luxembourg Bar, in addition to ordinary accounting and tax rules (law of 19 December 2002, VAT).
Key takeaway
- Client funds must be tracked separately and reconciled.
- Accounting combines practice operations and conduct obligations.
- The form (self-employed or company) determines the accounts format.
Who this is for
- Independent lawyers and law firms
- Practices in corporate form (SARL, SCS, association of lawyers)
- Firms holding client funds on behalf of clients
- Lawyers preparing to set up in Luxembourg
What we do
- Practice bookkeeping (fees, costs, VAT)
- Separate tracking and reconciliation of client funds
- Tax returns and income tax return
- Annual accounts where the practice is incorporated
- Support for accounting professional-conduct compliance
Ready to structure your accounting for law firms?
First reply within 24 working hours, from a named adviser. Firm quote within 48 working hours once the scope is defined. NDA on request before any confidential document.
Official sources and verification
This page is published under the editorial responsibility of Mickaël LOC for Financial Services Luxembourg (business permit 10077274). The rules cited should be checked against competent authorities and the circumstances of the case.
Frequently asked questions
Why specific accounting for lawyers?
Because, in addition to ordinary accounting and tax obligations, there is the conduct-driven tracking of client funds (sums held for clients), which must be traced and segregated.
Do you manage client accounts (third-party funds)?
We set up the accounting tracking and reconciliations of client funds, in line with Bar rules; the management of the accounts remains the lawyer's responsibility.
Sole practice or company?
Both are possible. The choice affects the accounts format and taxation; we help you decide.
Do you cover VAT on fees?
Yes, including the VAT specifics applicable to legal services, and the related filings.
Request a quote: Accounting for law firms
First reply within 24 working hours, from a named adviser. NDA on request before any confidential document.