The benefits to live in Luxembourg

Stress quietly

Living in Luxembourg, it is above all a subtle balance between the stress of his business week and tranquility well-deserved weekend. Here's how we could describe in a sentence the life in Luxembourg. Great business capital, Luxembourg is busy weekdays by this frenzy of business and banks. Every day, 150.000 border cross the border to work in Luxembourg and leave in the evening. Suffice to say that the city exudes such a lung-loading of oxygen and then exhale the evening. Then comes the weekend, where you can happily enjoy the tranquility of this days off, in strolling through the city center or going to discover the wonderful Luxembourg campaigns consisting of lakes and forests!

The quality of life is one of the first advantages of Luxembourg.

Dividends

This is a big advantage that puts not to large numbers of business owner. The dividends paid by a company resident or non-resident shareholders are exempt to 50% for Luxembourg residents for income tax!
The company paying the dividends must be either a resident company of the taxable Luxembourg, a company resident in the EU taxable or a non-resident company, but in a country that has a double tax agreement with Luxembourg.
Take an example of a company that pays its shareholder € 200.000 dividend after the close of its fiscal year, the resident must declare the perception of € 100.000 which will be taxed according to the current fee schedule and according to tax class to which the resident belongs!

Remember, the dividends are taxed at source at the rate of 15% for a Luxembourg resident company.

Interest paid by Paying Agents

Another benefit for Luxembourg residents.
The "Paying Agents" are generally banks, paying interest to customers, glances of investments and returns made. The Luxembourg officials are required to make a withholding on all interest paid to the individual resident or non-resident.

The deduction for non-residents is 35% (from 1 July 2011). Note that the previous retention was 20% (as of July 2008). But restraint for residents is 10%. So that the income taxed at source do not need to be declared by individuals in their additional annual tax return.