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Luxembourg Company Formation
The wealthiest country by GDP, Luxembourg provides a unique low-tax environment for international investors. It is used for corporate structuring for cross border transactions, but it has to constantly adapt is tax legislation due to its place in Europe´s political environment, to avoid conflict with the tax authorities of other EU countries. Luxembourg corporate income tax is 31%, however, within a standard structure is a strictly-defined class of holding company, and the corporate income tax is below 1%.
A Saporfi is a tax-efficient kind of business entity. It is not a legal entity per se, rather it employs one of the forms as SA or a SARL, as legal base. The rules governing low-tax holding companies are strict and it is essential that you comply with them at all times, otherwise will lose its low-tax status.