Luxembourg 2027 Budget brief update
Bill Selected Tax Highlights
• Reduction of standard CIT to 15% and for taxable income up to €200,000 to 13%
• Unlimited tax-loss carry-forward
• Capital gain on movable assets within 12 months becomes taxable
• Personal income tax indexation
• Rental-property depreciation of 6% subject to threshold and statutory conditions
• Increased investment tax credits
• Changes to reporting requirements for participation bonuses and the expatriate tax regime
Key takeaways
The reduction in CIT (modestly!) enhances the competitiveness of Luxembourg companies.The unlimited carry-forward of tax losses could be particularly relevant for investment and financing companies with long periods between incurring losses and generating taxable profits.The extension of the holding period from 6 to 12 months for the taxation of speculative capital gains could affect disposing of securities or selling participations within a short period, unless protected by an applicable double tax treaty. However, case-specific structuring alternatives may be available.
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