Inheritance tax and inheritance law in Luxembourg
Estate Tax (Succession and Death Duties)
Inheritance is subject to inheritance tax. It is taxed at the net value, deducting all liabilities and allowances. Rates vary depending on the taxable inheritance value and the relationship between the deceased and the heir.
CLASS CATEGORY |
|
| Class | Description |
| Class 1 | transferees in the direct line; spouses and registered partners (of more than three years’ conjugal status) with issue in common |
| Class 2 | spouses and registered and registered partners (of more than three years’ conjugal status) with no issue in common |
| Class 3 | siblings |
| Class 4 | avuncular relations (i.e. uncles, aunts, nephews, nieces), and adoptive parents and children |
| Class 5 | grand-avuncular relations (i.e. great-uncles, etc.) and adoptive grandparents and grandchildren |
| Class 6 | all other transferees |
| Source: Global Property Guide | |
INHERITANCE TAX |
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| Taxable Value, (€) | Tax Rate (%) | ||||||||||
| Class 1 | Class 2 | Class 3 | Class4 | Class 5 | Class 6 | ||||||
| Up to 10,000 | 0.0 | 5.0 | 6.0 | 9.0 | 10.0 | 15.0 | |||||
| 10,001 – 20,000 | 0.0 | 5.5 | 6.6 | 9.9 | 11.0 | 16.5 | |||||
| 20,001 – 30,000 | 0.0 | 6.0 | 7.2 | 10.8 | 12.0 | 18.0 | |||||
| 30,001 – 40,000 | 0.0 | 6.5 | 7.8 | 11.7 | 13.0 | 19.5 | |||||
| 40,001 – 50,000 | 0.0 | 7.0 | 8.4 | 12.6 | 14.0 | 21.0 | |||||
| 50,001 – 75,000 | 0.0 | 7.5 | 9.0 | 13.5 | 15.0 | 22.5 | |||||
| 75,001 – 100,000 | 0.0 | 8.0 | 9.6 | 14.4 | 16.0 | 24.0 | |||||
| 100,001 – 150,000 | 0.0 | 8.5 | 10.2 | 15.3 | 17.0 | 25.5 | |||||
| 150,001 – 200,000 | 0.0 | 9.0 | 10.8 | 16.2 | 18.0 | 27.0 | |||||
| 200,001 – 250,000 | 0.0 | 9.5 | 11.4 | 17.1 | 19.0 | 28.5 | |||||
| 250,001 – 380,000 | 0.0 | 11.0 | 13.2 | 19.8 | 22.0 | 33.0 | |||||
| 380,001 – 500,000 | 0.0 | 11.5 | 13.8 | 20.7 | 23.0 | 34.5 | |||||
| 500,001 – 620,000 | 0.0 | 12.0 | 14.4 | 21.6 | 24.0 | 36.0 | |||||
| 620,001 – 750,000 | 0.0 | 12.5 | 15.0 | 22.5 | 25.0 | 37.5 | |||||
| 750,001 – 870,000 | 0.0 | 13.0 | 15.6 | 23.4 | 26.0 | 39.0 | |||||
| 870,001 – 1,000,000 | 0.0 | 13.5 | 16.2 | 24.3 | 27.0 | 40.5 | |||||
| 1,000,001 – 1,250,000 | 0.0 | 14.0 | 16.8 | 25.2 | 28.0 | 42.0 | |||||
| 1,250,001 – 1,500,000 | 0.0 | 14.5 | 17.4 | 26.1 | 29.0 | 43.5 | |||||
| 1,500,001 – 1,750,000 | 0.0 | 15.0 | 18.0 | 27.0 | 30.0 | 45.0 | |||||
| Above 1,750,000 | 0.0 | 16.0 | 19.2 | 28.8 | 32.0 | 48.0 | |||||
Gift Tax
Gift taxes (registration duties) are levied in Luxembourg for all gifts made in writing or that requires registration. Gifts of immovable property are required to be registered. The rates vary depending on the relationship between the donor and the beneficiary.
Gift Tax |
|
| CLASSIFICATION OF GIFT | TAX RATE |
| Recoverable gifts in direct line | 1.8% |
| Non-recoverable gifts in direct line | 2.4% |
| Gifts between spouses | 4.8% |
| Between brothers and sisters | 6% |
| Between uncle/aunt and nephew/niece | 8.4% |
| Between great-uncle/-aunt and great-nephew/-niece | 9.6% |
| Between unrelated individuals | 14.4% |
Gifts between spouses, brothers and sisters, uncle/aunt and nephew/niece, great-uncle/-aunt and great-nephew/-niece, and between unrelated individuals may be taxed at reduced rates if it is made in a pre-nuptial agreement.
Real estate gift transfers are also subject to a 1% transcription duty (droit de transcription).