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Luxembourg: Offshore Business Sectors

Ship Management and Maritime Operations

Luxembourg introduced its maritime registry in 1990, although it is a land-locked country, under the Commissariat des Affaires Maritimes. Shipping companies have to be managed from Luxembourg, or at any rate on behalf of a Luxembourg owner or manager. Non-resident crew members are taxed at a 10% flat rate (at the time of writing).

Shipping companies are subject to the normal corporate income tax (see Domestic Corporate Taxation) but are exempt from Municipal Business Tax, and receive worthwhile investment tax credits and accelerated depreciation allowances. Capital gains on the sale of vessels can be rolled over within two years into the purchase of new vessels, to avoid taxation.

 

 

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