Luxembourg has a 24.94% headline corporate tax rate; occupiers must also model property taxes and any local occupancy levies on top of rent.

  • Headline corporate tax: 24.94%.
  • Property taxes / business rates / equivalents are a separate line item — model them explicitly.
  • Cross-border occupiers should screen for local incentives (free zones, IP regimes, R&D credits).

Luxembourg corporate taxes and occupancy taxes

Luxembourg has a 24.94% headline corporate tax rate; occupiers must also model property taxes and any local occupancy levies on top of rent.

TL;DR

  • Headline corporate tax: 24.94%.
  • Property taxes / business rates / equivalents are a separate line item — model them explicitly.
  • Cross-border occupiers should screen for local incentives (free zones, IP regimes, R&D credits).

Corporate tax

Luxembourg levies an effective corporate tax of around 24.94% on most C-corps. Cross-border holding structures and IP regimes can materially change the effective rate; engage local tax counsel early.

Occupancy and property taxes

17% federal corporate income tax plus 7% solidarity surcharge plus 6.75% Luxembourg City municipal business tax for an effective combined rate of 24.94%. Material participation exemption regime.

Key facts

cityLuxembourg
countryLuxembourg
regionEMEA
classARentLocal50 EUR/sqft/yr
classARentUsd$54/sqft/yr
vacancy4.8%
typicalLeaseYears9
typicalRentFreeMonths6
submarkets5
primeYieldPct4.8%
corporateTaxPct24.94%

Frequently asked questions

What is Luxembourg's corporate tax rate?
Around 24.94% on most C-corps. Local incentives, IP regimes, and structuring change the effective rate materially.

Editorial provenance

Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

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