Luxembourg Holding Company Setup | Financial Services

Strategic Benefits of creating a Holding Structure in Luxembourg 

Luxembourg regarded as one of the best countries to create a holding structure because of the following reasons:  

1. Favorable Taxation Regime: One of the most competitive in Europe.
2. Minimum Regulatory Requirements: Smooth incorporation and management of companies.
3. Strategic European Location: offering easy access to the whole continent.

With flexible corporate structures, Luxembourg allows for efficient asset management and international tax planning, being one of the favorite destinations for investors worlwide.

Why to Choose a Holding Company in Luxembourg?

The first and foremost advantages of a holding company is tax benefits, which make it an attractive choice for foreign investors. A holding company Luxembourg, or a SOPARFI (Société de Participations Financières), has a number of significant advantages:

Advantages of a SOPARFI in Luxembourg

1. Reduced or Exempt Taxation on Dividends:
   • Pay reduced withholding taxes or enjoy full exemption from income tax on dividends.
2. No Withholding Tax on Interest Payments:
   • There is no witholding tax on interests payments if made within of from Luxembourg.
3. Simple Governance Structure:
   • A single director may manage the company, and such a director may also act as the shareholder.
4. Low Capital Requirements:
   • The minimum share capital required is €30,000 for an SA, or €12,000 for an SARL payable in any foreign currency by non-residents.
5. Capital Gains Tax Exemption:
   • Holding companies also exempted from the capital gains tax, another reason that makes Luxembourg a very excellent place for asset management.
6. Confidentiality for Owners:
   • They are not disclosed provided the company is not involved in any commercial activity

Luxembourg: A Global Business Center

Luxembourg offers, in addition, a strategic location with an unparalleled environment for investors through a well-set regulatory framework and advantageous tax policies. Wrapping their businesses with the SOPARFI holding structure would maximize international tax planning and asset optimization for long-term success. Your goal may be to centralize your investments or minimize tax burdens or ensure privacy; in each of these cases, setting up a holding company in Luxembourg offers unparalleled advantages.

Start  the process now and unleash a Luxembourg holding company setup in all its glory!