Setting Up a Business in Luxembourg

An in-depth guide for foreign entrepreneurs and companies looking to enter the Luxembourg market — less a low-cost jurisdiction than a genuine structuring and holding platform, anchored by the SOPARFI regime and unrestricted EU market access.
This guide covers legal structures (SARL, minimum €12,000 share capital; SA, minimum €30,000), business taxation — including a 16% corporate rate (down from 17% since January 2025), an aggregate rate around 23.87% once municipal business tax is included, an 80% exemption on qualifying IP income, and the SOPARFI holding regime’s near-total exemption on dividends and capital gains from qualifying participations — company formation, the cost of labor, and immigration routes for executives, investors, and entrepreneurs. Includes a dedicated section on Luxembourg’s EU passporting advantage and its position as the world’s second-largest investment fund centre, an operational checklist, and useful contacts.
Available in English, French, and German.