MOLITOR Avocats à la Cour


MOLITOR focuses on tax on inbound investment in Luxembourg

In ‘Getting the Deal Through — Tax on Inbound Investment 2013’, Aurélie Budzin-Dang, senior associate at MOLITOR Avocats à la Cour, focuses on Luxembourg.

In a share deal, the acquirer acquires only the ownership of the shares. Therefore, only the newly acquired shareholding will be booked in the acquirer’s accounts. If the shareholding is acquired in consideration for cash, it will be booked at the acquisition cost value that will be used for the computation of the future capital gains on the sale of the shareholding by the acquirer. If it is acquired in the framework of a share-for-share exchange, the shares received in exchange for the shares disposed of are booked at the initial book value of the shares disposed of (see question 4). The accounts of the target company itself remain unchanged and its business is deemed to be continued. If the target company was part of a consolidated tax group, the sale of the target within five years of its entry into the tax group triggers clawback issues. If the target is a partnership owning real estate in Luxembourg, the acquirer will pay a transfer tax upon the date of the transfer at a rate of 7 per cent (ie, 6 per cent of registration duty and 1 per cent of transcription tax) to which is added a municipal surcharge of 3 per cent if the real estate is located in Luxembourg City, in the same way as if he or she had acquired real estate directly. There are no VAT consequences, as the VAT taxpayer remains the same without transferring any assets…

If you are registered and logged in to the site, click on the link below to read the rest of the Molitor briefing. If not, please register or sign in with your details below.

Click on the link above to download this briefing.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from MOLITOR Avocats à la Cour

View more briefings from MOLITOR Avocats à la Cour


8, rue Sainte-Zithe
Luxembourg City
L - 2016

Number of partners: 5
Number of lawyers: 28