Luxembourg Holding Company Setup | Financial Services

Strategic Benefits of Setting Up a Holding Structure in Luxembourg 

Luxembourg stands out as a premier jurisdiction for establishing holding structures, thanks to its:  

1. Favorable Taxation Regime: One of the most competitive in Europe.
2. Minimal Regulatory Requirements: Streamlined processes for company incorporation and management.
3. Strategic European Location: A central hub connecting businesses to the entire continent.

With flexible corporate structures, Luxembourg enables effective asset management and international tax planning, making it a go-to destination for global investors.

Why Choose a Holding Company in Luxembourg?

The primary appeal of a holding company lies in its tax advantages, which make it a compelling choice for foreign investors. A Luxembourg holding company, such as a SOPARFI (Société de Participations Financières), offers several key benefits:

Advantages of a SOPARFI in Luxembourg

1. Reduced or Exempt Taxation on Dividends:
   • Benefit from reduced withholding taxes or even full income tax exemption on dividends.
2. No Withholding Tax on Interest Payments:
   • Interest payments made within or from Luxembourg are not subject to withholding tax.
3. Simple Governance Structure:
   • A single director can manage the company, and the director can also act as the shareholder.
4. Low Capital Requirements:
   • The minimum share capital is €30,000, payable in any foreign currency by non-residents.
5. Capital Gains Tax Exemption:
   • Holding companies enjoy exemptions on capital gains tax, making Luxembourg an attractive choice for asset management.
6. Confidentiality for Owners:
   • When not engaged in commercial activities, the identities of the owners remain confidential.

Luxembourg: A Global Business Hub

Luxembourg's well-structured regulatory framework, favorable tax policies, and strategic location create an unmatched environment for investors. By leveraging the SOPARFI holding structure, businesses can maximize international tax planning and asset optimization, positioning themselves for long-term success.Whether you are looking to centralize your investments, reduce tax burdens, or protect your privacy, establishing a holding company in Luxembourg offers unparalleled advantages.

Start your journey today and unlock the full potential of a Luxembourg holding structure!