Understand how interest earned from savings and cash accounts held in Luxembourg and abroad is taxed and learn about tax exemptions.
Luxembourg continues to attract savvy investors with its well-regulated financial market and tax system. Understanding how interest earned on savings and cash accounts is taxed is crucial for taxpayers looking to optimise their financial returns...
Whether interest income is earned locally or abroad, Luxembourg residents benefit from a clear tax framework with allowances and exemptions that can ease the tax burden.
For non-residents, interest income is generally taxed in their country of residence, unless they request to be treated as Luxembourg residents for tax purposes, in that case, interest income needs to be declared in their Luxembourg tax return. To ensure compliance and optimise tax benefits, seeking professional tax advice is recommended.
To read more, visit the Luxembourg Times