Luxembourg Launches New IP Regime

Luxembourg has introduced a new Intellectual Property (IP) regime which is compliant with Action 5 of the Base Erosion and Profit Shifting (BEPS) Action Plan. The new regime offers benefits to businesses seeking to invest in research and development and innovation, by structuring these activities through Luxembourg.

An 80% tax exemption on eligible net income for qualifying IP rights is available under the new regime. In addition, IP assets which qualify for the 80% (corporate) income tax exemption will be fully exempt from net wealth tax.

The law introducing the new regime was released on 22 March 2018, and is retrospectively effective from 1 January 2018. You can read our briefing on the new regime here.

To discuss the new regime and how we may help please contact Chantal Behr in our Luxembourg office.