Luxembourg: Types of Company
This page was last updated on 17 June 2020.
In July, 2006, the European Commission ordered the government of Luxembourg to dismantle its system of tax breaks for financial holding companies, after concluding that the preferential tax regime in favour of Luxembourg's exempt, milliardaire and 1929 financial colding companies violates EC treaty state aid rules. (The existing regimes are described in Offshore Legal and Tax Regimes.)
Luxembourg did finally abolish the holding company regimes as of 1st January 2007, allowing existing companies to retain their tax benefits until 2010. The replacement for the holding company regime is the family wealth management company or SPF, brought into being in 2007, and aimed at the wealth management sector.