Insights

Luxembourg Budget 2027

Editorial Team 23 Oct 2026

An analysis from ATOZ Tax Advisers, Taxand Luxembourg

Luxembourg’s Draft Budget 2027 introduces a series of tax measures designed to strengthen competitiveness and encourage investment. The proposed changes are expected to affect individuals and corporate taxpayers, particularly with regard to capital gains, employers’ reporting obligations, real estate investments, and investments in digital transformation and the ecological and energy transition.

These include:

• a 1% cut in the corporate income tax rate
• the removal of the time limit on tax loss carry forwards
• higher investment tax credit rates for digital and green projects
• an extension of the holding period for speculative gains
• new rules for amortising and deducting residential investments
• streamlined employer reporting for the impatriate and employee profit-sharing regimes

For businesses, the proposals would also abolish the 17-year limit on carrying forward tax losses and enhance investment incentives. Tax credits for qualifying digital transformation and environmental or energy-transition investments would increase from 18% to 21%, while the credit for hiring unemployed people would be extended until the end of 2029.

The Budget also contains measures affecting individuals, investors and employers, including changes to personal income tax brackets, an extension of the holding period used to determine certain speculative capital gains from six to 12 months, and changes relating to rental housing.

Tax experts Fanny Bueb and Marie Bentley from our Lux member firm, ATOZ Tax Advisers, provide a comprehensive analysis of the key measures, which you can read here.

Article tags

Luxembourg | Corporate Profit Tax | Budget