Why Luxembourg?
Key advantages for foreign founders.
EU Fund Capital
#1 European domicile for investment funds. UCITS, AIFMD, RAIF, SIF structures.
SOPARFI Holding
Participation exemption on dividends and capital gains. 80+ DTAs. Premier EU holding jurisdiction.
Political & Financial Stability
AAA-rated, EU founding member, seat of EU institutions. Stable regulatory environment.
Multilingual & Central
French, German, Luxembourgish, English widely spoken. Central European location.
IP Regime
80% exemption on net income from qualifying IP. Effective rate under 5%.
100% Foreign Ownership
No restrictions. Well-established international business community.
How Luxembourg Compares
Side-by-side with Europe’s top jurisdictions.
| Jurisdiction | CIT | Min Capital | Formation | Foreign Own. | Best For |
|---|---|---|---|---|---|
| 🇬🇧 United Kingdom | 25% | None | 1–2 days | 100% | Global credibility, fintech |
| 🇪🇪 Estonia | 0% / 22% | €2,500 | 1–3 days | 100% | e-Residency, digital nomads |
| 🇳🇱 Netherlands | 19–25.8% | €0.01 | 1–2 weeks | 100% | EU HQ, holding structures |
| 🇨🇾 Cyprus | 15% | None | 1–2 weeks | 100% | IP box, shipping, low CIT |
| 🇲🇹 Malta | 5% eff. | €1,165 | 2–4 weeks | 100% | Gaming, crypto, 5% tax |
| 🇨🇭 Switzerland | 11.9–21% | CHF 20K | 2–4 weeks | 100% | Wealth mgmt, pharma, luxury |
| 🇮🇪 Ireland | 12.5% | None | 3–5 days | 100% | Tech HQs, IP, pharma |
| 🇵🇹 Portugal | 21% | None | 1–2 weeks | 100% | NHR tax, golden visa, D7 |
| 🇱🇺 Luxembourg | 24.94% | €12K | 2–4 weeks | 100% | Funds, SOPARFI holdings |
| 🇱🇹 Lithuania | 15% | €2,500 | 3–7 days | 100% | EMI/fintech licensing, low cost |
Choosing a holding base? See how Luxembourg compares with the Netherlands, or browse the top European jurisdictions for company formation in 2026.
Entity Types Available
Choose the right structure for Luxembourg.
S.àr.l. (Limited Liability)
Most popular. 1+ shareholder. €12,000 min capital. Notarial deed required. Flexible governance.
- RCS registration
- Notarial deed
- ACD tax registration
- Registered address
- UBO filing
- Bank account introduction
S.A. (Corporation)
For fund vehicles and larger enterprises. €30,000 min capital. Board required.
- RCS registration
- Notarial deed
- Board & auditor setup
- Tax registration
- Bank account introduction
SOPARFI (Holding)
S.àr.l. or S.A. structured as a holding. Participation exemption on qualifying participations.
- RCS registration
- Holding structure optimization
- Tax registration
- Registered address
- Bank account introduction
How It Works
Our managed formation process.
Notarial deed & capital deposit
Luxembourg notary prepares deed of incorporation. Share capital deposited at a Luxembourg bank.
RCS registration
Registration with Registre de Commerce et des Sociétés. Publication in Mémorial C.
ACD tax registration
Registration with Administration des Contributions Directes. TVA (VAT) registration if applicable.
UBO register filing
Beneficial owner declaration filed with the Luxembourg Business Register.
Bank account activation
Capital release. Full corporate banking activated with BGL BNP Paribas, ING Luxembourg, or Banque de Luxembourg.
What’s Included
Formation Package
- ✓ Company registration & certificate
- ✓ Articles / founding documents
- ✓ Tax registration
- ✓ Registered address (1st year)
- ✓ Bank account introduction
- ✓ Compliance documentation
Documents You Receive
- 📄 Certificate of Incorporation
- 📄 Tax registration certificate
- 📄 Articles of Association
- 📄 Director & shareholder register
- 📄 Corporate seal (where applicable)
- 📄 Bank account confirmation
Tax Overview
Luxembourg’s tax framework.
| Tax | Rate | Notes |
|---|---|---|
| Corporate Income Tax | 17% | On taxable income |
| Municipal Business Tax | 6.75% | In Luxembourg City; varies by municipality |
| Combined Effective Rate | 24.94% | CIT + MBT + solidarity surcharge in Luxembourg City |
| Participation Exemption | 0% | On dividends and gains from qualifying 10%+ participations held 12+ months |
| IP Regime | ~5% eff. | 80% exemption on net IP income |
| VAT | 17% | Standard; 14%, 8%, 3% reduced rates |
| Net Wealth Tax | 0.5% | On net assets; reduced for SOPARFI structures |
Cost & Timeline Breakdown
Transparent pricing with no hidden fees.
| Item | Cost (USD) | Timeline |
|---|---|---|
| Notarial deed | Included | 3–5 days |
| Capital deposit facilitation | Included | 1–2 days |
| RCS registration | Included | 5–7 days |
| ACD tax registration | Included | 3–5 days |
| UBO filing | Included | 1–2 days |
| Registered address (1 yr) | Included | Same day |
| Bank account introduction | Included | Already open |
| Total Package | From $5,000 | 2–4 weeks |
All prices fixed — no hourly billing.
Speak with a Luxembourg Specialist
Our team will guide you through the optimal structure.
What Our Clients Say
Founders who registered through Sovera Global.
“Luxembourg RAIF was the only option for our institutional fund. Sovera handled the S.àr.l. formation and coordinated with our AIFM.”
“SOPARFI structure in Luxembourg gave us the participation exemption we needed for our group restructuring. Sovera managed notary and RCS efficiently.”
Official Resources
Government agencies for company registration in Luxembourg.
Frequently Asked Questions
A S.àr.l. or S.A. structured as a holding company. Benefits from the participation exemption on dividends and capital gains from qualifying subsidiaries.
0% tax on dividends and capital gains from qualifying participations (10%+ or €1.2M acquisition cost, held 12+ months).
S.àr.l.: €12,000. S.A.: €30,000. Must be fully paid up at incorporation.
Yes. Notarial deed is mandatory for both S.àr.l. and S.A. under Luxembourg law.
Yes. No restrictions. Well-established international investor base.
S.àr.l.: 2–4 weeks including notarization, RCS, and tax registration.
#1 in Europe. UCITS, AIFMD, RAIF, SIF, SICAR structures all available. CSSF regulated.
Annual accounts filed with RCS, corporate tax return, VAT returns, UBO updates, and statutory audit.
Ready to register in Luxembourg?
Get your personalized quote with exact pricing, timeline, and required documents.
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