Luxembourg has signed double taxation treaties with 75 countries, which makes the establishment of a holding company very attractive and enables tax-efficient business transactions. The country has agreements with all EU member states and with members of the OECD (Organization for Cooperation and Development - has 34 member countries), and the network of double taxation treaties continues to grow with 19 other countries on the list. The holding company can qualify for the participation exemption, so that dividends received and capital gains from the paid-in nominal capital of a subsidiary are completely exempt from corporation tax (CIT). Purpose of holding companies The purpose of holding companies in Luxembourg applies to the management of the stockholdings in other businesses that have economic activities. When having at least 10% of the shares in the company, the holder can vote in the firm and also provide technical management, if it is the case and if the firm approve the agreement. https://www.luxlegal.eu/en/holding-company/




