Luxembourg’s participation exemption regime remains a cornerstone of its tax framework, offering exemptions from income tax, withholding tax, and net wealth tax for qualifying investments held by qualifying entities. The exemption continues to apply broadly – covering dividends, capital gains and liquidation proceeds – provided the relevant conditions are met.
In this 2026 edition, we outline the latest rules shaping the regime and summarize the conditions for benefiting from the exemptions. As always, whether the exemption applies must be assessed on a case-by-case basis, taking into account the specific profile, structure and tax status of the entities involved.
Download the full 2026 guide to explore:
