ACCOUNTING, 04Aut. 10077274 · 142 Boulevard de la Pétrusse, Luxembourg

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.

In short

The accounting of a lawyer or law firm combines operating accounting (fees, costs, VAT) with the separate tracking of third-party funds held on behalf of clients, in accordance with the professional rules of the Luxembourg Bar (Ordre des avocats).

Legal basis

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

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FAQ

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.
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