BUSINESSLuxembourg: A Popular Offshore Jurisdiction in 2023

Luxembourg: A Popular Offshore Jurisdiction in 2023

Set up an offshore company in Luxembourg effortlessly. Diversify your assets and protect your business from adverse events. Explore our comprehensive articles and expert guidance for offshore company registration. Start building your “parallel life” today!

Have you ever thought of opening an offshore company? This is a wise decision as diversification is the key to safety. If you have a company and a bank account in your home country, you have no options to rely on if some adverse events occur. With that in mind, people build “parallel lives” by setting up a company and a bank account in foreign countries, investing in real estate abroad, and even acquiring second citizenship.

If you have never dealt with the issues of offshore company registration, welcome to our portal where you will find a lot of relevant articles to read after you find out how to set up an offshore in Luxembourg. We have offshore experts who help people build every aspect of the “parallel life” mentioned above. You will not have to study the laws and requirements of the foreign country: we will do that for you, and all you will have to do is to operate your newly-formed business.

Luxembourg: An Offshore Jurisdiction?

Luxembourg does not look like a standard tax haven – so why do we mention it in the context of offshore companies? Well, an “offshore jurisdiction” is the one that offers advantageous conditions to foreigners in terms of company registration and tax rates. And Luxembourg is popular due to the special tax regimes available to investors and entrepreneurs.

Luxembourg is the richest country in Europe with the largest GDP growth indicators. It has a stable economy that creates every possibility for businesses to develop, which attracts many major market players: Skype, PayPal, Amazon, and many other companies of a similar scale are headquartered here. They take advantage of tax incentives and a highly-skilled workforce and are ready to put up with more diligence checks than a typical island jurisdiction would require.

You can follow suit if you trust the choice of large multinationals!

Companies Registered in Luxembourg

Let’s look at the statistics to find out which companies find it beneficial to operate from Luxembourg.

More than 60% of companies established here engage in activities related to finances, insurance, and real estate. 21% more are the companies that provide services.

The legal form which is most popular in the jurisdiction is a holding company (43% of all registered entities), which is easily explained: if they own foreign companies, they are tax-exempt in Luxembourg.

On the whole, Luxembourg is an offer not to miss if you are engaged in any kind of asset management services.

Luxembourg: Advantages

Luxembourg is not very big, but it prospers due to its well-thought-out administration. It offers the same rights and privileges to foreign investors as to the local ones and has a high reputation in the European Union that your company can benefit from.

Here are the main reasons that make entrepreneurs opt for Luxembourg:

  • Economic and political stability
  • Growing GDP with no signs of stagnation even in difficult periods
  • AAA credit rating
  • Convenient geographical location which makes it easy to get to any place in Europe and beyond
  • Multilingual workforce (three languages are spoken here as official ones: French, German, and Luxembourgish)
  • Pro-business environment
  • The tax regime and legal framework are elaborated to stimulate investments
  • Well-developed infrastructure (good transportation links and advanced IT infrastructure)
  • High living standards

And if your country of residence has a double taxation treaty with Luxembourg, you will pay less taxes on capital gains, dividends, and royalties.

Best Sectors for Foreign Investors

Here are the areas that foreign investors find really attractive in Luxembourg:

  • Financial area
  • Logistics services
  • Automotive sector
  • IT and high-tech
  • R&D

Companies that develop intellectual property are exempt from 80% of corporate tax on the income obtained from it, which is a very attractive feature.

The steps required to incorporate your company in Luxembourg are quite straightforward:

  • First, you apply for permission to carry out business activities and wait to obtain the respective license.
  • As soon as you get your license, the company is entered into the local register.
  • If you intend to hire the staff, you will need registration with the local social security system.
  • You rent or buy office premises in Luxembourg.
  • Finally, you register your company with the tax authorities.

A duly registered company will be able to benefit from lower taxes, subsidies on equipment acquisition, more attractive financial conditions, capital investment subtractions, and more.

Ready-to-Use Offshore Companies in Luxembourg

If you want to get a duly registered business as soon as practically possible, you can buy a ready-to-use company in Luxembourg! It is a properly registered entity that has no liabilities and can be used to immediately start business operations.

Sounds doubtful? Contact our experts using the above link for more details. We will help you to complete the procedure online, so you will acquire a ready-to-operate business without leaving the comfort of your home! All you need to do is to sign an agreement and insert your name as the company owner and the company name.

This is an absolutely legitimate way to start a business in a well-developed European country really quickly!

Re-domicile your Business to Luxembourg

Do you have a company in another jurisdiction that you would like to relocate? We can help you with that. Here are the requirements that need to be fulfilled:

  • The decision on re-domiciliation should be officially made by the company’s management
  • Prepare notarized copies of founding documents
  • Rent a physical office in Luxembourg
  • Deposit the starting capital with a local bank
  • Approve the company structure
  • Appoint a board of directors
  • Deregister your company in the current jurisdiction
  • Schedule and conduct a meeting in the new office

If Luxembourg looks like the jurisdiction you need, do not miss an opportunity to relocate your business – and we will help you do so smoothly.

Contact our experts to get an estimate of taxes your company will have to pay in Luxembourg. This is not a tax-free jurisdiction, and the exact amount will depend on the details of your situation.


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