The taxation system is among the benefits of a holding company and among the reasons why foreign investors decide for such type of company. The following advantages of a holding company in Luxembourg can help investors decide easily for this form of business in the Grand Duchy:
- a SOPARFI is subject to a reduced withholding tax or income tax exemption on pidends;
- there is no withholding tax on interest payments made in Luxembourg;
- such a company can be managed by a single director which can also be the shareholder;
- EUR 30,000 is the minimum share capital for a holding company and foreigners can use any currency they want;
- holding companies in Luxembourg do not need to pay capital gains taxes;
- if the company is not subject to commercial activities, information about the owners will be private.