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The Law of 3 February 2026 introduces a competitive carried interest regime applicable from fiscal year 2026, with the ambition of attracting front and middle office employees to Luxembourg. With this new legislation, Luxembourg firmly establishes itself as Europe’s premier destination for carried

Luxembourg offers an attractive tax regime for impatriate employees who are either seconded to a Luxembourg company within an international group or directly recruited from abroad by a Luxembourg or EEA company. The regime provides for a 50% exemption of annual gross remuneration, capped at EUR 400

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 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

On 5 January 2026, the OECD Inclusive Framework issued additional guidance on the application of the Global Anti-Base Erosion Model Rules (“ Pillar Two” or the “ GloBE Rules”). This guidance covers several topics, most notably the “Side-by-Side Safe Harbour”, which is currently applicable to US