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Why a pension reform now? Luxembourg’s pension system has long been considered one of the most generous and robust in Europe. Built on a strong pay-as-you-go model, supported by a sizeable reserve fund and sustained by a growing workforce, it has for decades ensured high replacement rates and early

Key takeaways On 6 January 2026, the Luxembourg Government has issued a major tax reform draft law (the “ Draft Law”) introducing a single personal income tax class (" classe d'impôt unique ") shifting the present tax system to individual taxation as the default-regime and which will be running over

On 14 January 2009, Luxembourg and the Republic of Albania signed a treaty for the elimination of double taxation with respect to taxes on income and on capital and the prevention of tax evasion and avoidance (the “ DTT”). The DTT had however never been ratified due to a change in convention policy

On 29 January 2024, the Grand Duchy of Luxembourg and Montenegro signed a treaty for the elimination of double taxation with respect to taxes on income and on capital and the prevention of tax evasion and avoidance (the “ DTT”). The DTT was approved by the Grand Duchy of Luxembourg by the law of 18

On 17 December 2025, the Luxembourg Parliament adopted the law introducing a tax credit for private individuals investing in innovative start-ups (the Law of 19 December 2025, the “ Law”). The Law applies as from tax year 2026. This Law follows Draft Law No. 8526 , submitted to the Luxembourg

In December 2025, the European Commission issued a letter of formal notice to Luxembourg concerning the failure to abolish a discriminatory tax regime applicable to dividends derived from public investments. The contested regime allows for an exemption of the Luxembourg 15% withholding tax on