Personal taxation · Luxembourg
Capital gains on shares and ETFs in Luxembourg
The taxation of a sale of securities depends in particular on the holding period, the category of the transaction and any substantial shareholding. An ETF distribution and the sale of its units are two different events. A holding period of more than six months is not, on its own, a universal exemption.
Financial Services Luxembourg · Licensed accountant · Head of the firm: Mickaël LOC. Editorial update: .
Distinguishing the events
List purchases, sales, distributions and transfers between accounts separately. A transfer without a sale must not be turned into a realised capital gain simply because the broker changes.
The status of the product and the characteristics of the fund or instrument must be identified. The rules for an ordinary share do not extend, without checking, to all derivatives or funds.
Holding period and shareholding
Speculative transactions and disposals falling under other provisions are not subject to the same regime. The holding period must be calculated from the relevant, documented dates.
A substantial shareholding may require a review of the holdings and history of the taxpayer and of the persons covered by the legislation. An answer based only on the latest account statement is not sufficient.
Fictitious example
A sale shows a gain, but the securities had been transferred from a former broker without a reliable cost price. The gain shown may then differ from the result to be determined for tax purposes.
Reconstruct the acquisition, the fees and the corporate actions. A capital loss cannot automatically be offset against any other income or in any year.
Documents
- History of acquisitions and disposals, including after a transfer.
- Fees, currencies and corporate actions.
- Legal and tax nature of the product.
- Relevant shareholding and history if the taxpayer holds substantial rights.
The firm’s other tax engagements
Depending on your situation, the firm also handles tax, VAT and payroll, the regularisation of late tax filings and assistance during a tax audit. Fees are listed in the firm’s fee grid.
Official sources and scope
- ACD: miscellaneous income and disposals
- ACD: consolidated income tax law (LIR), 2025
- ACD: income from movable capital
The rules apply to the year and profile concerned. Examples flagged as fictitious explain a method; they are not an individual validation. The documents and options of your file are covered by a separate engagement.