When a company comes to deciding where to locate its headquarters, Luxembourg should be at the top of their short-listed destinations. At the heart of Europe, Luxembourg offers first-class infrastructure, a strong financial center, a business-friendly legal and regulatory framework, and an attractive tax environment. Its social and political stability as well as its highly skilled and multi-lingual workforce are also incredible assets.
Many companies, regardless of their industry or origin, have already made the choice to locate their headquarters in Luxembourg like ArcelorMittal, the world’s largest steelmaker, RTL Group, the European leading radio and TV broadcaster, satellite services leaders SES and Intelsat, intercontinental airfreight company Cargolux, or internet giants Amazon, Skype and Paypal.
Luxembourg’s government is committed to defending a stable and attractive tax framework. Besides the lowest level of VAT in the EU, Luxembourg’s effective corporate income tax is among the most favorable in Europe. Regarding international taxation, few payments are subject to withholding taxes, and 64 double tax treaties are currently in force. This situation allows an optimal management of cross-border transfer pricing. Additionally, the Luxembourg participation exemption regime, providing for an exemption from income, withholding and net wealth tax for qualifying participations, is very advantageous. Other tax measures and regimes also contribute to Luxembourg’s outstanding tax environment: attractive IP regime, favorable tax regime for expatriates, absence of capital duty and tax transfer, etc.
Beyond tax aspects, Luxembourg has gained an international recognition regarding top management advisory services: valuation, mergers and acquisitions, strategic planning, company management, international law and taxation. It also offers a broad range of financial and legal instruments which are strong vectors for optimizing the organization of the corporate structure, notably in the fields of reinsurance, securitization, pension planning, investment funds and wealth management.
What makes Luxembourg a prime location is also the government’s commitment to promote Research & Development, notably through tax incentives and through the National Agency for the promotion of Innovation and Research. IT services are particularly developed: Luxembourg is pioneer in communication technologies and has one of the most advanced data center parks in Europe.
KPMG Luxembourg is composed of experts in the fields of audit, tax and advisory. Our services for corporate headquarter clients include:
- Strategic planning
- Mergers and acquisitions
- Valuation, restructuring and transaction services
- Internal audit
- IT audit
- Full spectrum of tax services
- Accounting services