Can anybody create /manage a company in Luxemburg ?
Yes, if this person can prove the necessary professional skills acquired through professional experience in his homeland as an employee or self-employed person or by submitting the required degrees.
Do I need a physical address for the company in Luxemburg?
No, if for its current operations, the company has no need for a physical address in Luxemburg, than it will, according to the new Luxemburg legislation, be registered in a solicitor’s office.
Do I have to reside in Luxemburg ?
No for no reason whatsoever.
Similar topic : Your personal revenue through the Luxemburg sa / social aspect
Can my staff be registered in Luxemburg to enjoy the benefit of the very low Luxemburg social charges ?
- Yes, if they work in Luxemburg.
- Yes, if it concerns staff envolved in international transport.
- No, if this staff does not work in Luxemburg.
What is the definite character of all these advantages ? What about the European rules and legislation ?
We can not see in the future but….
We can’t imagine there would be a standardization in the next coming years for :
• the annual tax for cars
For example 150 EUR in Luxemburg and 1.500 EUR in Belgium for the same car.
• the registration fee for cars ( B.I.V. / B.P.M)
0 EUR in Luxemburg up to 5.000 EUR in Belgium and even more in The Netherlands.
• the VAT tariffs
Maximum 15 % in Luxemburg, 21 % in Belgium.
On hotel and restaurant expense 3 % in Luxemburg, 21 % in Belgium
• Salary charges for the employer
12 à 13 % voor Luxemburg, 40 à 50 % in België
• Income tax
The income tax in Luxemburg is only a fraction of the Belgian or Dutch system
Similar topic : Your income tax through Luxemburg / fiscal aspect
Similar topic : see under News 18/03/04
• We observe that Luxemburg is still in the process of lowering its company taxes: on January 1st 2002 , they were reduced from maximum 33 % to 22 %
I was told by my account – adviser that I will have to pay income taxes in my home country.
AThe article 16 of the O.E.S.O. model explicitly points out that the compensation one gets for managing a company is NOT taxed in the country of residence but in the country where the company is registered.
This convention was signed by all Western countries and ratified in local tax treaties. ( for instance in article 16 of the Belgian-Luxemburg treaty on double income taxes)
Where am I supposed to declare my personal income tax ?
You have to make a declaration in Luxemburg where you will actually pay your taxes. Also in your home country you have to make a declaration. There you do not pay ANYTHING.
