Dividend withholding tax
When a Luxembourg company distributes profits, it withholds tax at source. The rate — and the exemption that holding structures are built on — in two rows.
Last verified 23 July 2026
Official sources only, linked per figure
The rules
Withholding tax on dividends
15%
guichet.public.lu - distribution of dividends, withholding tax · verified 23 July 2026
Parent-subsidiary exemption
exempt when the parent holds ≥ 10% of shares, or meets alternative criteria incl. a minimum €1.2M investment, under conditions
guichet.public.lu - distribution of dividends, parent-subsidiary regime · verified 23 July 2026
The 15% withholding applies to distributions to shareholders generally; double-tax treaties can reduce it for non-resident owners. The parent-subsidiary exemption is the mechanism behind Luxembourg's SOPARFI holding structures: qualifying corporate parents receive dividends free of withholding.
Common questions
How much tax does Luxembourg withhold on dividends?
15% at source. Distributions to qualifying corporate parents (at least a 10% holding, or an acquisition price of at least €1.2 million, under conditions) are exempt under the parent-subsidiary regime.
Related in the database
Reference material from official Luxembourg sources, linked per figure. This is document automation support, not legal or tax advice; confirm figures against the linked source for your specific case.