Luxembourg VAT, net wealth tax and subscription tax: key facts

Country reference

• Country: Luxembourg (planned expansion country)
• Authorities: Administration de l’enregistrement, des domaines et de la TVA (AED); ACD
• Topic: VAT, net wealth tax and subscription tax
• Key date: Net wealth tax circular of 12 May 2026
• Law: VAT Law; Net Wealth Tax Law (VStG); UCI Law of 17 December 2010

VAT

• 17%: standard rate, the lowest standard rate in the EU.
• 14%: for example certain wines and the management and safekeeping of securities.
• 8%: for example gas and electricity supplies.
• 3%: for example most food, medicines, books and some children’s clothing.

Net wealth tax

• 0.5% on net wealth up to EUR 500 million; above that, EUR 2.5 million plus 0.05% of the excess.
• Minimum charge from EUR 535 to EUR 4,815, depending on the balance sheet total.
• Companies can reduce net wealth tax by creating a special reserve, under conditions.
• The ACD issued Circular I. Fort. No. 56 on 12 May 2026 on rates, the minimum tax and the reduction, from the 1 January 2025 valuation date.

Subscription tax for funds

• 0.05% a year for most funds; 0.01% for institutional and money market funds.
• Lower rates for the part of net assets invested in sustainable assets.
• Exemptions for funds of institutional funds and for ETFs, including listed UCITS ETFs from 2025.

Registration duties

• 7% on sales of Luxembourg real estate, plus a 3% surcharge in Luxembourg City.
• Fixed EUR 75 duty on incorporations and amendments to articles.
• No stamp duty.

What to do now

• Holding companies: check minimum net wealth tax and whether a reserve can reduce it.
• Fund managers: confirm subscription tax rates and any sustainable-asset reduction.
• Businesses selling into Luxembourg: register for VAT where required and apply the correct rate.

Our take

These taxes are small per entity but add up across a holding structure. Review them annually, especially the net wealth tax on holding companies.