IP Box
80% tax exemption
Backed by Luxembourg direct tax administration (ACD)
Facts verified June 2026 — against official programme sources.
What it is
Luxembourg's preferential IP tax regime: 80% of net income from qualifying IP — including self-developed software — is exempt from tax.
Applies to patents and copyrighted software developed through your own work; income is tracked per asset, so the setup determines how much of it qualifies.
At a glance
Type of aid
Tax regime
Who it's for
Companies earning income from self-developed IP, including software
What it funds
80% exemption on qualifying net IP income — an effective rate of roughly 5%
Backed by
Luxembourg direct tax administration (ACD)
Is this you?
Sounds close? The free 15-min check tells you for sure.
One rule applies almost everywhere: the application must be filed before you sign contracts or start the project. We handle scheme selection, the file and the whole process end to end — you build, we file.
