Dmitri Mihhailov
Managing Partner
Founder of Prifinance. 15+ years structuring international companies, banking and licensing for founders worldwide.
Register a company in Luxembourg
- Europe’s hub for holdings and funds.Company registration in Luxembourg gives you a remotely established SARL, SA or another suitable structure with access to the SOPARFI participation exemption, one of the world’s largest fund industries and the EU’s lowest standard VAT rate at 17%. Qualifying dividends and capital gains can be exempt from tax, while operating profits in Luxembourg City carry an aggregate burden of around 23.9%. The jurisdiction also requires genuine substance, local decision-making and proper accounting.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
6,000+
companies servedcompanies served
Updated
Luxembourg · at a glance
Legal formsSARL · SA · SARL-S
Time to set up1-3 weeks
Aggregate tax~23.9% - Lux City
Participation exemption0% qualifying flows
Minimum capital€12,000 · SARL-S €1
Remote setupYes - notary by POA
4.7
★★★★★
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Luxembourg in brief
Where European capital gets the infrastructure to scale.
Luxembourg manages more investment-fund assets than any jurisdiction except the United States, with more than five trillion euros in UCITS, RAIFs and SICAVs under CSSF oversight. A significant share of European corporate wealth also runs through the SOPARFI, where qualifying dividends and capital gains can be exempt from tax and onward distributions to qualifying EU and treaty parents can avoid withholding. Companies in Luxembourg also benefit from a AAA jurisdiction, the euro, a multilingual professional ecosystem and the EU’s lowest standard VAT rate at 17%.
That infrastructure comes at a higher cost than in mass-market European jurisdictions. Operating profits in Luxembourg City face an aggregate burden of around 23.9%, the net wealth tax is 0.5% with statutory minimums, and SARL and SA structures incorporate through a notary. ATAD, Pillar Two and anti-abuse rules also require real decision-making, local accounting and board substance. For that reason, it usually makes sense to open a company in Luxembourg for holdings, funds and wealth platforms rather than for a small trading operation.
Packages & pricing
Company registration in Luxembourg - cost and packages.
01 - SARL / SOPARFI
Company
from€4,800EUR · all-in
Remote company formation in Luxembourg includes selecting the structure, executing the notarial deed by power of attorney, RCS filing, tax registration and the first year of the registered office.
✓Form and structure strategy - SARL, SA or SOPARFI✓Notarial deed by power of attorney✓RCS filing - fees included✓Registered office - first year✓Tax and VAT registration✓Free pre-incorporation consultation
Optional add-ons: substance package with board and enhanced domiciliation - scoped per case · RAIF / SICAV structuring - scoped per case · annual renewal - from €3,500/year.
Start with Company →02 - SARL / SOPARFI
Most popularCompany + Bank Account
from€6,300EUR · all-in
A working Luxembourg company with an account: capital is deposited first, followed by EUR operating facilities with a Luxembourg or other European private-banking-grade institution.
✓Everything in Company✓Capital and operating accounts arranged✓Account application and KYC file preparation✓Introduction to 2-3 suitable institutions✓Compliance onboarding support✓Dedicated account manager
Start with Banking →These are starting prices; the final quote is confirmed before work begins. Notary, register and domiciliation fees are itemised separately, while the contributed capital remains the company’s money.
What you can do
Popular uses for a Luxembourg company.
Almost any lawful activity is permitted, but Luxembourg’s main strength is structuring: holdings, funds and wealth platforms, with CSSF oversight where regulated. Payment company registration in Luxembourg and obtaining a payment licence in Luxembourg therefore follow a separate regulated track.
SOPARFI holdings
Qualifying dividends and capital gains can enter at 0%, while onward distributions to qualifying parents can leave without withholding.
Investment fundslicensed
RAIFs can launch in weeks, while SICAVs and UCITS operate within Luxembourg’s established CSSF-regulated fund ecosystem.
Private wealth - SPF
A dedicated family investment vehicle taxed through subscription rather than ordinary profit taxation.
IP & financing
Group treasury and licensing structures benefit from treaty depth and a mature professional-services environment.
EU distribution hublicensed
Funds and regulated products can use EU passporting from a Luxembourg structure.
Financial serviceslicensed
PSF, payment and investment firms operate under CSSF supervision, while obtaining an e-money licence in Luxembourg also follows a separate regulated process.
Why Luxembourg
Key advantages of the jurisdiction.
✓
Participation exemption
Qualifying dividends and capital gains can flow through a SOPARFI tax-free when the statutory conditions are met.
✓
Fund infrastructure
Luxembourg ranks second worldwide by investment-fund assets, while RAIF structures can launch without prior CSSF approval.
✓
AAA credibility
The sovereign rating, courts and regulator support a high level of institutional trust.
✓
EU’s lowest standard VAT
The 17% standard rate provides an additional operating advantage for certain business models.
✓
Treaty and directive depth
More than eighty tax treaties sit alongside EU directives for cross-border flows.
✓
Professional infrastructure
The country has a deep base of multilingual lawyers, domiciliation agents, accountants and fund administrators.
How it compares
Luxembourg alongside the main European alternatives.
The Netherlands combines a similar holding tradition with a larger operating economy; Ireland is stronger for trading and technology businesses; Switzerland offers the franc outside the EU; Liechtenstein combines specialised structures with EEA access. Luxembourg stands out for SOPARFI and the scale of its fund infrastructure. Figures current as of 2026.
| Country | Aggregate tax | Holding regime | Signature edge |
|---|---|---|---|
| Luxembourg | ~23.9% | SOPARFI - full exemption | Funds #2 worldwide |
| Netherlands | 25.8% | Participation exemption | Operating + holding mix |
| Ireland | 12.5% trading | 2025 exemption | English + operations |
| Switzerland | 12-21% cantonal | Participation relief | The franc, non-EU |
| Liechtenstein | 12.5% | 0% WHT everywhere | Foundations + EEA |
LuxembourgFunds #2 worldwide
Aggregate tax~23.9%
Holding regimeSOPARFI - full exemption
NetherlandsOperating + holding mix
Aggregate tax25.8%
Holding regimeParticipation exemption
IrelandEnglish + operations
Aggregate tax12.5% trading
Holding regime2025 exemption
SwitzerlandThe franc, non-EU
Aggregate tax12-21% cantonal
Holding regimeParticipation relief
LiechtensteinFoundations + EEA
Aggregate tax12.5%
Holding regime0% WHT everywhere
Requirements
What Luxembourg law actually requires.
01
One shareholder - an individual or company of any nationality; 100% foreign ownership is permitted.
02
Management - at least one manager is required; for holdings, real substance means genuine Luxembourg decision-making.
03
Capital - SARL requires €12,000 fully paid, SA €30,000 with one quarter paid, and SARL-S from €1 to €12,000 for individual founders.
04
Notarial deed - SARL and SA incorporate before a notary, but the process can be completed by apostilled power of attorney without travel.
05
Registered office - a genuine Luxembourg address is required; domiciliation and additional substance options can be included in the package.
06
Accounts & filings - annual financial statements in Luxembourg are filed with the RCS, together with net wealth tax returns and audit where required. Preparation of financial statements in Luxembourg and financial statement filing in Luxembourg are handled by local partners according to the compliance calendar.
How it works
From application to a registered company - one to three weeks.
To register a company in Luxembourg, the process runs through lawyers, the notary and the RCS. Documents can be completed remotely by power of attorney, while banking is sequenced around the capital deposit.
01Same day
Free consultation
We match the structure to the flows - SOPARFI, SPF, RAIF or a plain SARL - and flag a cheaper jurisdiction if Luxembourg infrastructure is unnecessary.
023-7 days
KYC & structuring
Passports, source-of-funds documentation and draft statutes are prepared to the standard expected by banks.
033-7 days
Capital deposit
The required capital is transferred to a blocked account and the bank issues confirmation.
042-5 days
Notarial deed
The deed is executed by power of attorney, and the company comes into existence on signature.
053-7 days
RCS & tax
The company is published in the register and completes tax and VAT registrations.
061-3 weeks
Banking
The capital account is converted into an operating account and banking proceeds on the basis of the prepared KYC file.
Quick facts
Legal formsSARL / SA / SARL-S
Aggregate tax~23.9% Lux City
Participation exemption0% qualifying
Net wealth tax0.5% · minimums
Standard timeline1-3 weeks
Capital€12,000 SARL
RenewalFrom €3,500/year
The participation exemption has specific conditions: a holding of at least 10% or an acquisition cost of €1.2M, maintained for 12 months. The structure also needs sufficient substance to support the exemption.
On the ground
On the ground in Luxembourg.
Prifinance - Luxembourg
Luxembourg City
Luxembourg City, Luxembourg
01
Structure specialists
Your setup is run by a team building Luxembourg holdings and fund vehicles every month.
02
Notary & RCS handled
Deeds, publications, tax and NWT filings. Sequenced correctly the first time.
03
Substance that stands
Boards, domiciliation and decision-making built to survive ATAD scrutiny, not just registration.
04
Also in Hong Kong, London, Dubai & more
A network of offices across Europe, the Gulf and the Americas. One team for your whole international structure.
We also have offices in
Hong Kong
Hong Kong
5/F, Yau Lee Centre, 45 Hoi Yuen Road, Kwun Tong
Vilnius
Lithuania
Gedimino pr. 2
London
United Kingdom
7 Bell Yard
Prague
Czech Republic
Vlkova 532/8, Žižkov
Berlin
Germany
Rankestraße 26
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Türkiye
Perpa Ticaret Merkezi, A Blok
Dubai
UAE
33 Level, Al Saqr Business Tower
Toronto
Canada
1110 Finch Avenue West, suite 406
Singapore
Singapore
3 Church Street, #29-68 Samsung Hub
Bangkok
Thailand
Unit P01, Penthouse, VASU1, 1 Sukhumvit 25 Alley
Foshan
China
A-Tower, Yuneng Digital Plaza, 46 Lishui Avenue South
Almaty
Kazakhstan
Republic Square 13
Bishkek
Kyrgyzstan
32 Razzakov Street
Taxation 2026
Operating rates and holding exemptions.
The Luxembourg tax system combines ordinary taxation of operating profits with specific exemptions for qualifying holding income. The aggregate rate in Luxembourg City is around 23.9%, including corporate tax, the solidarity surcharge and municipal business tax, while a 14% corporate rate applies below €175,000 of income. Qualifying dividends and capital gains can be exempt under the participation exemption. Net wealth tax is 0.5%.
Aggregate - ~23.9%
CIT, solidarity surcharge and municipal business tax in Luxembourg City.
Participation exemption
Qualifying dividends and capital gains are taxed at 0% when the conditions are met.
Net wealth tax - 0.5%
Charged annually with statutory minimums of €535-4,815.
VAT - 17%
The EU’s lowest standard rate; funds and many financial services are exempt.
Levies in 2026
Aggregate corporate tax (Lux City)~23.9%
Small profits (< €175k)~21% aggregate
Qualifying dividends & gains0%
Net wealth tax0.5% · min €535+
VAT17%
RenewalFrom €3,500/year
Owners remain responsible for tax where they live, while holding-exemption conditions must be tested separately for each asset and income flow.
Your team
The specialists who'll handle your case.
Eugeniu Bevziuc
International Business Consultant
Guides clients from the first consultation to a working setup - companies, accounts and substance in 60+ jurisdictions.
Alex Danila
Corporate Services Specialist
Handles incorporation paperwork, KYC and bank introductions so your Luxembourg structure launches without delays.
Follow Prifinance
Active across our channels.
Company Registration in Luxembourg: Costs, Timeline & Requirements
The continent's holding standard and its fund capital - structured with the substance to last. Full support, start to finish.
Talk to a specialist →FAQ
Common questions about company registration in Luxembourg.
Can I open a company in Luxembourg without visiting?+
Yes. The notarial deed can be executed by apostilled power of attorney, while RCS, tax and VAT registrations are completed remotely. Banks differ: some private and fund-adjacent institutions request one meeting, while others can complete onboarding by video with a strong KYC file.
How much does it cost?+
Company registration in Luxembourg starts from €4,800 turnkey, packages with banking from €6,300, and annual renewal from €3,500. Additional costs arise where the structure needs expanded substance such as local directors or premises.
What taxes will the company pay?+
An operating company in Luxembourg City pays around 23.9% aggregate, VAT is 17%, and net wealth tax is 0.5%. A SOPARFI can apply 0% to qualifying dividends and capital gains when the participation-exemption conditions are met.
How does the SOPARFI participation exemption work?+
For dividends, the company must hold at least 10% of a qualifying subsidiary or an interest with an acquisition cost of at least €1.2M for 12 months. Capital gains follow a similar framework with a €6M threshold. Onward distributions to qualifying EU and treaty parents can also be exempt from withholding.
SARL, SA or SARL-S?+
SARL company registration in Luxembourg is suitable for most holding and private structures and requires €12,000 of capital. To open an SA company in Luxembourg usually makes sense for funds, listings and wider shareholder bases, with €30,000 of capital. SARL-S starts from €1 but is aimed primarily at individual founders and is less common in international structuring.
What about the fund side - RAIF and SICAV?+
A RAIF can launch within weeks without prior CSSF approval because supervision runs through its AIFM. SICAV and UCITS structures undergo full CSSF authorisation and can use EU passporting.
What is the net wealth tax?+
It is an annual 0.5% tax on net assets, reduced to 0.05% above €500M, with minimum payments from €535 to €4,815. Participation-exempt holdings are excluded from the base, so genuine SOPARFI structures often feel the charge mainly through the minimum.
How much substance does a SOPARFI need?+
More than a registered address. The structure needs genuine Luxembourg decision-making, real board meetings, local books and a defensible office arrangement. The required level of substance depends on the scale and nature of the flows.
Luxembourg or the Netherlands?+
The Netherlands combines participation exemption with a larger operating economy and an easier environment for mixed operating-holding groups. Luxembourg is stronger in funds, SOPARFI, private wealth and specialised structuring infrastructure. The group’s operating profile usually determines the better fit.
How long does company formation in Luxembourg take?+
Plan on one to three weeks: KYC and structuring come first, followed by the capital deposit and notarial deed, then RCS publication and tax registrations. Banking usually takes another 1-3 weeks, while RAIF structures follow a separate track of around 4-8 weeks.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
Google
“I had their assistance in company registration and I would recommend them. They were answering all my clarification during the process and offering all their supportThank you Daniel and Irinia”
Google
“We found PRIFINANCE COMPANYvia the Internet and asked for help in organizing the opening of their company in Estonia. PRIFINANCE COMPANY specialists helped us a lot with this. Their professional, competent approach and knowledge of their business left us with only the best impressions.”
Google
“I'm thrilled with my experience with PriFinance! They helped me obtain a crypto license in Estonia without any hassle. The team was super understanding and always available to answer my questions and assist. It was great to see how they put effort into preparing the documents to ensure everything went smoothly. I'm delighted with the outcome and highly recommend PriFinance to anyone looking to get a license…”
Google
“Opening an account with Prifinance in a Swiss bank was such an easy and quick process that I was shocked. It all started with the first call, where I received detailed guidance on the required documents and the entire procedure.One of the key highlights was their attention to detail. As someone who usually gets tangled up in paperwork, I was pleasantly surprised when they sent me all the documents and…”
Google
“I recently had the pleasure of working with Boris.. and I must say, it was a fantastic experience. Boris went above and beyond to assist me with my residency needs. His professionalism, knowledge, and dedication truly stood out. I highly recommend working with Boris and the team!”
Google
More from Prifinance
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Free consultation
Start your Luxembourg structure today.
Describe your flows, and a specialist replies within one business day with a recommendation (SOPARFI, RAIF, SPF or a different flag), a timeline and a fixed quote.
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