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Net wealth tax guide

Net wealth tax in Luxembourg, and the minimum everyone pays.

Every Luxembourg company pays net wealth tax each year, even without profit. The 0.5% rate, the €535 to €4,815 minimum, the exemption for shareholdings and the reserve that can cut your bill, all linked to the tax authorities.

Book a free first call See the minimum
Your net wealth tax
2026
€
€
€
Standard tax, 0.5%
Minimum, after reduction
You pay
Resident company, 2025 rules onwards. Exempt shareholdings excluded from net wealth. Ignores rounding and the reserve reduction.
0.5%Of net wealth up to €500 million.
Tax returns €750Corporate returns, fixed price. See our rates.
Free first callWe check your minimum and reserve.
Open on SaturdaysWhen it suits you.
The basics

A tax on what the company owns.

Net wealth tax is levied on the company's net assets, its assets minus its debts, as they stand on 1 January each year.

Who paysCapital companies such as the SA, SARL, SCA and SE. Residents are taxed on their worldwide wealth, non-residents on their Luxembourg wealth.
Who doesn'tIndividuals, since 2006, including sole traders and partners. Also SPF, SICAR, securitisation companies, SEPCAV and investment funds.
On 1 JanuaryWealth is valued on 1 January of each year. The value is set every 3 years, or sooner when it changes by more than a fifth or €75,000.
Net assetsThe business is valued as a whole. Real estate follows the land tax method; listed securities and receivables are taken at their real value.

Source: Guichet.lu, net wealth tax

The rate

Two rates, one threshold.

Taxable wealth up to €500 million0.5%So €500 a year for every €100,000 of taxable net wealth.
Above €500 million0.05%€2,500,000 plus 0.05% of the part above €500 million.

Source: ACD, net wealth tax rates and minimum (§ 8 VStG)

The minimum

Even with no profit, there is a floor.

Since 2016 the minimum net wealth tax has replaced the minimum corporate income tax. From 2025 it has three levels, set by the balance sheet total.

Minimum net wealth tax

Balance sheet total2017 to 2024From 2025
Up to €350,000€535€535
€350,000 to €2m€1,605€1,605
€2m to €10m€5,350€4,815
€10m to €15m€10,700€4,815
€15m to €20m€16,050€4,815
€20m to €30m€21,400€4,815
Over €30m€32,100€4,815

Until 2024, companies holding mostly financial assets paid €4,815 once their balance sheet passed €350,000. From 2025, the scale is the same for all.

Source: ACD, net wealth tax rates and minimum (§ 8 VStG)

How the bill is worked out

  1. Standard tax: 0.5% of taxable net wealth.
  2. Minimum: €535, €1,605 or €4,815, depending on the balance sheet total of the last closing.
  3. Reduce the minimum by the corporate income tax and employment fund surcharge due for the previous year.
  4. Compare: if the reduced minimum is not higher than the standard tax, you pay the standard tax. Otherwise you pay the reduced minimum.

In a tax group, the members' combined minimum is capped at €32,100.

Source: ACD, net wealth tax rates and minimum (§ 8 VStG)

Shareholdings

Exempt holdings in subsidiaries

A resident capital company does not count its shareholdings in qualifying subsidiaries in its taxable wealth, if each holding is at least 10% of the capital or cost at least €1.2 million.

That is why most holding companies pay only the minimum. Our guide to the Soparfi explains the full regime.

Source: Guichet.lu, net wealth tax

Filing

When and how to declare

The net wealth tax return is due by 31 December of the year after the tax year, the same deadline as the corporate income tax and municipal business tax returns.

Companies file online through MyGuichet.lu. See our guide to corporate tax for the other two returns.

Sources: ACD, filing deadlines · Guichet.lu, net wealth tax

Paying less, legally

The net wealth tax reserve.

A company that pays corporate income tax can reduce its net wealth tax by setting profit aside in a special reserve.

How it works

  • Book a reserve equal to five times the reduction, and keep it on the balance sheet for five tax years.
  • The reduction is capped at the corporate income tax and employment fund surcharge due for the previous year, before credits.
  • It cannot reduce the minimum net wealth tax.
  • Distribute the reserve early and the tax rises the next year by one fifth of the amount used.
  • Ask for it in the corporate income tax return.

Sources: ACD, net wealth tax reduction · Guichet.lu, net wealth tax

Prices

Your returns, done for you.

Fixed prices, excluding VAT. We check your minimum and whether a reserve makes sense.

Corporate tax returns

Prepared and filed with the tax office

€750a year

Annual accounts

The basis for the balance sheet total

from €750a year

Accounting

Monthly bookkeeping, Starter plan

from €250a month

Source: Finbros services and rates

Common questions

Net wealth tax, answered.

What company owners ask us most about net wealth tax.

Book a free first call

0.5% of taxable net wealth up to €500 million. Above that, €2,500,000 plus 0.05% of the part above €500 million.

Source: ACD, net wealth tax rates and minimum (§ 8 VStG)

From 2025, €535 for a balance sheet total up to €350,000, €1,605 up to €2 million, and €4,815 above. It is reduced by the corporate income tax and employment fund surcharge due for the previous year.

Source: ACD, net wealth tax rates and minimum (§ 8 VStG)

No. Individuals have been exempt since 2006, including sole traders and partners in partnerships. Net wealth tax applies to capital companies.

Source: Guichet.lu, net wealth tax

Yes. Every company pays at least the minimum net wealth tax, which replaced the minimum corporate income tax in 2016.

Source: ACD, net wealth tax rates and minimum (§ 8 VStG)

Yes, but qualifying shareholdings of at least 10% or costing at least €1.2 million are not counted, so many holdings pay only the minimum.

Sources: Guichet.lu, net wealth tax · ACD, net wealth tax rates and minimum (§ 8 VStG)

By booking a reserve equal to five times the reduction and keeping it for five tax years. The reduction is capped at the previous year's corporate income tax and employment fund surcharge, and it cannot reduce the minimum.

Source: ACD, net wealth tax reduction

On 1 January of each year. The value is set every three years, or sooner if it changes by more than a fifth or €75,000.

Source: Guichet.lu, net wealth tax

By 31 December of the year after the tax year, together with the corporate income tax and municipal business tax returns.

Source: ACD, filing deadlines

Ready when you are

Pay the right net wealth tax, not more.

We prepare your accounts and returns, check your minimum and set up the reserve when it pays off. Book a free first call, Saturdays included.

Book a free first call Corporate tax guide

Rules and rates as they apply in November 2026. General information, not tax advice for your situation. Part of the Finbros Encyclopedia.