Luxembourg 2026 Budget Bill – Tax Stability

The Luxembourg government has submitted its 2026 budget bill to Parliament, reaffirming its commitment to fiscal stability and international competitiveness. Whilst other tax measures are subject to separate bills (notably on carried interest), the budget bill focuses on limited technical adjustments, international compliance, and targeted measures aligned with Luxembourg's economic and climate strategy. As such, no major tax changes are aimed at corporate taxpayers.

The 2026 budget bill mentions the continued implementation of the OECD Pillar Two minimum taxation rules for large multinational groups.  For further background, please see our tax flash on the Luxembourg implementation. The government estimates that these rules will generate EUR 80 million in additional revenue in 2026.