Holding company in Luxembourg
The most well-known holding company in Luxembourg is the Soparfi because it is a stable company (stable legislation related), located in a stable country (EU country, euro zone), very safe for real estate investments in Europe and a very tax efficient company as group headquarter and intellectual property securization & licensing.
A holding company in Luxembourg to own a group of companies
The most efficient way of using such holding company is to own subsidiaries and collect income fom them (dividendes, capital gain on share transfer, etc.) and invest the profits directly to create new business activities (subsidiaries) or wealth (real estate, financial assets). The holding company becomes the banker of your group.
A strong legal security
If you want to develop your wealth and activity in Europe, you need a safe structure to proceed so. The Soparfi is the most efficient non-regulated tool.
As it is a fully taxable company, it benefits from all EU directives and all the double tax and information exchange treaties signed by Luxembourg. You can use the holdign company as a showcase of your group in Europe.
Moreover, the bank sector show high performances.
Real tax opportunities
The Soparfi holding company has the following tax advantages (in application of the law, not due to tax rulings) :
- no tax on dividends distributed by its subsidiaries,
- no tax on capital gains from subsidiaries share transfer,
- no tax on subsidiaries liquidation dividends,
- the Soparfi is covered by le Luxemburg art. 166 LIR and the Parent subsidiary european directive, so no witholding tax in the subsidiary country (in the EU zone),
To resume the advantages, such company pays no tax on its income related to its subsidiaries and very few tax on royalties.
Of course, there are specific procedures to set up such structuration. We are specialized in company formation and management, according to the Luxemburg Law and our clients interests.
We remain available for any 1st analysis of your project and needs, without any commitment.