Should You Set up a Trust in Luxembourg?
There are usually tons of benefits to setting up trusts in well-known European jurisdictions that are not considered traditional tax havens.
For starters, you don’t have to deal with all the additional paperwork and frowns associated with traditional offshore tax havens.
The highly regulated Luxembourg law on trusts, its stable tax administration, and the global importance and perception of the country offer you ease in many ways.
However, if you don’t mind stepping outside the EU, jurisdictions like the Cook Islands (a pioneer in offshore trusts) and the Bahamas may offer you more benefits from a tax perspective.
Wherever you see your best life, Nomad Capitalist can make it possible for you. All you have to do is reach out to us.
How to Set Up a Luxembourg Trust in 2024: The Ultimate Guide FAQ
Does Luxembourg tax trusts?
Non-resident beneficiaries of international trusts are generally exempt from all taxes as long as the trust assets are located outside of Luxembourg. Some key exceptions are mentioned below:
Non-residents are subjected to income tax only on Luxembourg-earned income and their property in Luxembourg.
Non-residents are subject to capital gains tax only if they dispose of shares or other assets subject to capital gains taxes within six months of acquisition.
Inheritance tax is due depending on the degree of kinship between the beneficiary and the settlor.
Assets transferred to a Luxembourg trust must be registered in LTR through a €12 registration tax.
Who can set up a Luxembourg trust?
Luxembourg trusts are excellent wealth management tools for wealthy individuals looking to protect their assets (liquid assets, legal entities, etc.). Such individuals can also establish private family offices in Luxembourg to protect their estates.
Source link : https://nomadcapitalist.com/finance/offshore/how-to-set-up-a-luxembourg-trust/
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Publish date : 2023-05-29 13:22:10
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