Luxembourg has introduced pivotal tax reforms aimed at reshaping its fiscal landscape and responding to global economic challenges, rising regional competition for talent and investment, and inflation-driven cost pressures.
The reforms are also important in the context of growing insecurity in neighboring jurisdictions and in the UK, where businesses and investors are increasingly uncertain about the tax environment.
The newly adopted measures include reductions in corporate taxes, enhanced personal income tax relief, and targeted incentives for attracting and retaining talent. Together, these changes underline Luxembourg’s commitment to fostering growth and resilience in a competitive environment.
By balancing corporate tax cuts, targeted incentives for talent, and relief measures for residents, the government is positioning Luxembourg to remain competitive on the global stage.
Revamped tax incentives for high earners and young professionals, adjustments to personal income tax brackets, and clarified corporate tax rules are also part of the 2025 tax package.
In this Bloomberg Tax article, our Tax Partner, Petya Dimitrova, explains new tax measures.