Accounting for small businesses in Luxembourg City.
Bookkeeping, VAT, payroll, annual accounts and tax returns for shops, trades, consultants and young companies, with fixed monthly prices and one team that knows your business.
Sole trader, SARL-S or SARL?
Most small businesses start in one of these three forms. The choice changes your start-up cost and your accounting obligations. Not sure? Try the legal structure finder.
Sole trader
Entreprise individuelle
- Capital
- None required
- Bookkeeping
- Simplified bookkeeping allowed if last year's turnover was €100,000 or less
- Annual accounts
- Filed with the LBR only above €100,000 turnover
Sources: Code de commerce, art. 13 · Guichet.lu, filing annual accounts
SARL-S
Simplified private limited company
- Capital
- €1 to €12,000, fully paid up
- Who can own it
- Individuals only, and one SARL-S per person
- Formation
- Private deed, no notary needed. A business permit is required first.
- Accounting
- Double-entry bookkeeping and annual accounts filed every year
Sources: Guichet.lu, SARL-S · Code de commerce, art. 9, 11 and 16 · Guichet.lu, filing annual accounts
SARL
Private limited company
- Capital
- €12,000, fully paid up
- Shareholders
- 1 to 100
- Formation
- Before a notary
- Accounting
- Double-entry bookkeeping and annual accounts filed every year
Sources: Guichet.lu, SARL · Code de commerce, art. 9, 11 and 16 · Guichet.lu, filing annual accounts
What a small business has to do.
The main legal obligations of a Luxembourg company, in the order you meet them. We take care of each one.
Keep your books, all year
Record every transaction without delay in double-entry accounts, and keep books and documents for ten years.
Sources: Code de commerce, art. 9, 11 and 16
File VAT returns
Once a year below €112,000 turnover, quarterly up to €620,000, monthly above. Businesses established in Luxembourg with turnover up to €50,000 can, in most cases, use the VAT franchise.
Sources: Guichet.lu, VAT returns · VAT law of 12 February 1979, art. 57bis
When you hire
Register as an employer and declare each new employee to the CCSS within 8 days of their start. Declarations more than 30 days late cost €50 a month, up to €2,500.
Sources: Guichet.lu, declaring a new employee
Close the year
Approve the annual accounts within six months of year-end and file them with the LBR within a month. Managers who do not can be fined.
Sources: Law of 10 August 1915, art. 1500-2 · Guichet.lu, filing annual accounts
File the tax returns
Corporate income tax and municipal business tax returns are due by 31 December of the following year.
Sources: ACD, filing deadlines
How much tax a small company pays.
Small companies benefit from a reduced corporate income tax rate. Here is the 2026 calculation for a company based in Luxembourg City.
| Taxable profit | Up to €175,000 | Above €200,000 |
|---|---|---|
| Corporate income tax | 14% | 16% |
| Employment fund surcharge (7% of that tax) | 0.98% | 1.12% |
| Municipal business tax, Luxembourg City | 6.75% | 6.75% |
| Combined rate | 21.73% | 23.87% |
Sources: ACD, corporate income tax rates · ACD, employment fund surcharge · Guichet.lu, municipal business tax
Good to know
Between €175,000 and €200,000 a transition band applies: €24,500 plus 30% of the profit above €175,000.
For municipal business tax, companies deduct an allowance of €17,500 from their profit first, so small profits pay less than the headline rate.
Every company also pays a minimum net wealth tax, from €535 a year.
Sources: ACD, corporate income tax rates · ACD, business tax calculation · ACD, net wealth tax (§ 8 VStG)
From first call to year-end.
A simple routine, so your accounts are up to date without taking your time.
Free first call
We understand your business, your structure and what you need, then send a fixed quote.
Onboarding
We set up myFinbros, collect your documents and take over from your previous accountant if you have one.
Every month
Snap your receipts, send your invoices. We record, reconcile and file VAT and payroll on time.
Every year
Annual accounts, general meeting and tax returns, prepared and filed.
Fixed monthly plans.
Pick the plan that matches your size. Prices exclude VAT. For a full yearly budget, see how much an accountant costs.
Starter
Start-ups, small businesses and holdings with limited activity.
- Up to 2 employees
- Up to 50 transactions a month
- Bookkeeping and bank reconciliations
- Secure portal and mobile app
- A dedicated contact
Business
Established businesses with regular activity.
- 2 to 10 employees
- Up to 200 transactions a month
- Bookkeeping and bank reconciliations
- Secure portal and mobile app
- A dedicated contact
Premium
Growing businesses with more complex accounting.
- More than 10 employees
- Up to 500 transactions a month
- Bookkeeping and bank reconciliations
- Secure portal and mobile app
- A dedicated contact
Sources: Finbros services and rates
Small business questions, answered.
What owners of small companies in Luxembourg ask us most.
Book a free first callAt Finbros, monthly accounting costs €250 for up to 2 employees and 50 transactions a month, €450 for 2 to 10 employees and up to 200 transactions, and €750 above that, excluding VAT. Annual accounts start at €750 and corporate tax returns cost €750.
Source: Finbros services and rates.
For taxable profit up to €175,000, corporate income tax is 14%, plus a 7% employment fund surcharge and 6.75% municipal business tax in Luxembourg City: a combined 21.73% in 2026. Above €200,000 the combined rate is 23.87%.
Source: ACD, corporate income tax rates and employment fund; Guichet.lu, municipal business tax.
Yes. A sole trader whose turnover excluding VAT did not exceed €100,000 in the last financial year can keep simplified accounts instead of full double-entry bookkeeping.
Source: Code de commerce, art. 13.
An SARL needs €12,000 of capital and is formed before a notary. An SARL-S needs €1 to €12,000, can be formed by private deed, can only be owned by individuals, and each person can hold only one SARL-S.
Source: Guichet.lu, SARL and SARL-S.
A business established in Luxembourg with annual turnover up to €50,000 can, in most cases, use the VAT franchise and not charge VAT. Our free VAT checker helps you see where you stand.
Source: VAT law of 12 February 1979, art. 57bis.
Register as an employer and declare the employee to the CCSS within 8 days of their start. Declarations more than 30 days late are fined €50 per month of delay, up to €2,500.
Source: Guichet.lu, declaring a new employee.
Ten years from the end of the financial year they relate to.
Source: Code de commerce, art. 16.
Yes to both. The first call is free and without commitment, and you can reach us on Saturdays.
Let's take the admin off your hands.
Book a free first call and receive a fixed quote. We are available on Saturdays too.
Rules as they apply in November 2026. General information, not legal or tax advice for your situation. Part of the Finbros Encyclopedia.