Europe EU
Founders structuring an IP holdco or group HQ, Luxembourg
The Luxembourg IP Box gives an 80% exemption on qualifying IP income for an effective rate near 5.2%, and the SOPARFI participation exemption covers qualifying dividends and capital gains. The 85-DTA network covers USA, UK, Germany and France.
IP Box ~5.2%SOPARFI85 DTAs
Start setup {placement} 4 min · no card required
Corp tax
24.94%
Fastest setup
4 weeks
Tax treaties
85
Region
Europe
What you'll need
- No resident director required
- Local registered office required
- Economic-substance test applies
- Minimum capital: EUR 12,000
- Administrative language: French
- Legal system: Civil law
Tax and treaty profile
- Corporate tax 24.94%
- Effective rate ~4.99%
- Tax treaties 85
- VAT rate 17%
- Withholding on dividends 15%
Key treaty partners
USAUKGermanyFranceBelgiumNetherlands
Banking and payments
- Banking is straightforward
- Stripe supported
- Wise supported
- Crypto banking available
- EMI license framework available
Considerations
If incorporation cost or speed is your binding constraint
Luxembourg requires a notarial deed, EUR 12K minimum share capital and realistic year-1 costs of EUR 10K-30K. For lean SME setups:
Notarial deedEUR 12K capitalEUR 10-30K year-1