Inheritance tax solutions in Luxembourg
Managing inheritance tax is an essential duty for individuals and families in Luxembourg, necessitating a thorough grasp of the legal framework and meticulous planning. Our method is centered on guiding you through these complexities with assurance, guaranteeing compliance while identifying ways to enhance your estate planning. By emphasizing accuracy and a strategic perspective, we aid in effectively managing your inheritance tax responsibilities, offering reassurance in a constantly changing tax landscape.
Inheritance income tax rate
Inheritance tax in Luxembourg is imposed on the overall value of the estate of a deceased person. This tax affects the estates of all residents of Luxembourg, defined as those whose primary residence is in the country or whose assets are mainly situated there. The rates for inheritance tax differ based on the relationship of the heir to the deceased, as well as the estate’s total value. In addition, Luxembourg has forced heirship laws that ensure certain family members are guaranteed a share of the estate. The inheritance tax rate ranges from 0% to 15%, influenced by the deceased’s relationship with the heir. For instance, direct descendants, such as children and grandchildren, are exempt from the legal portion but may incur a tax rate of 2.5% or 5% on any extra-legal portions. Siblings face a starting base rate of 6% on their legal share, which escalates with the estate’s value. Non-relatives are charged a flat rate of 15%. As estates exceed €10,000, the tax rate rises on a sliding scale that can reach up to 220%.
Our inheritance tax services
We offer a comprehensive array of services aimed at assisting individuals and families in efficiently handling their inheritance tax and associated responsibilities in Luxembourg. Our objective is to guarantee complete compliance while enhancing your estate planning approaches, enabling you to concentrate on what is most important. Our services encompass:
Estate planning and advisory
Our estate planning and advisory services aim to establish a tax-efficient strategy for transferring your wealth and assets. We collaborate with you to formulate approaches that reduce potential tax burdens, making sure your estate is organized to meet your financial objectives and family requirements. Additionally, we offer support on utilizing trusts, wills, and various legal documents to guarantee that your assets are allocated as you desire, while minimizing tax consequences.
Asset valuation and inheritance tax assessment
Even without direct inheritance tax, it remains crucial to recognize the value of your assets and the related tax consequences. Our services for asset valuation and tax assessment provide a comprehensive analysis of your estate, highlighting any possible tax obligations, including property tax or capital gains tax. We guarantee that all valuations are precise and adhere to Luxembourg tax regulations, giving you a clear insight into the tax environment related to your estate.
Property transfer and compliance
When passing on property as part of an inheritance, it is crucial to effectively manage the legal and tax obligations. Our services for property transfer and compliance guarantee that all transactions are conducted in accordance with Luxembourg law, reducing potential tax liabilities. We help prepare the required documents, guide you through the transfer process, and provide expert recommendations on enhancing the tax efficiency of property transfers within your estate.
International inheritance tax planning
Our international inheritance tax planning services offer strategic guidance for families with assets across different countries in handling cross-border estate matters. We assist you in dealing with the intricacies of international taxation, such as tax treaties, foreign tax credits, and preventing double taxation. Our team focuses on creating a tax-efficient global estate plan that adheres to the pertinent laws in every jurisdiction, safeguarding your wealth for future generations.
Inheritance tax compliance and reporting
Our services for inheritance tax compliance and reporting guarantee that all necessary tax filings are done precisely and punctually. We provide assistance with documentation, filing deadlines, and other responsibilities, helping you steer clear of penalties and ensuring your estate is handled in line with Luxembourg tax regulations.
Inheritance tax system
Understanding Luxembourg’s tax system is crucial for efficient estate planning. Our knowledge offers you a thorough insight into the important tax consequences related to inheritance, such as property and capital gains taxes. We assist you in recognizing ways to enhance your estate planning, ensuring that you achieve your financial goals while reducing tax obligations. With our guidance, you can make well-informed choices that safeguard your assets and ensure protection for your beneficiaries.
Contact us
To learn more about our inheritance tax services or to talk about how we can help, reach out to us.
Disclaimer
Tax laws and regulations are continually evolving and can differ depending on personal circumstances. The information presented here serves only as general guidance and may not be the latest available. It is strongly advised to seek the advice of a qualified tax professional for comprehensive and current information tailored to your situation.