On 11 December 2024, Luxembourg’s Parliament
approved a series of tax measures aimed at supporting individuals
and boosting the attractiveness of businesses. These changes,
effective from tax years 2024 or 2025 depending on the provision,
focus on reducing corporate tax burdens, updating rules, and
aligning with international standards.
Key business tax reforms
- Corporate Income Tax (CIT) rate reduction
- Starting 2025, the CIT rate will drop by 1 per
cent from 17 per cent to 16 per cent, lowering the overall tax rate
for companies incorporated in Luxembourg City to 23.87 per
cent.
- Simplified Net Wealth Tax (NWT)
- From 2025, the minimum NWT will follow a
three-tier structure only taking into account the balance sheet
without the proportion of final assets. The minimum net wealth tax
will now be capped at €4,815 significantly reducing the burden
on large holding and finance companies.
