On 7 October 2026, the Minister of Finance tabled bill of law n° 8800 on the State budget for 2027.
The main tax measures for companies, investors and individuals are the following:
- Corporate income tax rate. From tax year 2027, the standard rate falls from 16% to 15% and applies to taxable income above EUR 250,000 (currently EUR 200,000). For companies established in Luxembourg City, the aggregate rate including the employment fund contribution and the municipal business tax falls from 23.87% to 22.80%.
- Carry-forward of tax losses. The 17-year limitation on the carry-forward of losses incurred in financial years closed after 31 December 2016 is abolished, for corporate income tax and municipal business tax alike.
- Speculative gains. The holding period below which gains realised by individuals on movable assets (e.g. shares and other securities, crypto-assets) are taxed as speculative gains at progressive rates is extended from 6 to 12 months. The extension also applies to the period required for the favourable regime of substantial participations (more than 10%), to participation-linked carried interest under article 99bis of the LIR and to the taxation of non-residents on substantial participations in Luxembourg companies where no double tax treaty prevents it. Gains on non-substantial shareholdings sold more than 6 but no more than 12 months after acquisition, which are currently not taxable, would become fully taxable. Disposals planned for 2027 should therefore be checked against the acquisition date.
- Employer reporting for the profit-sharing bonus and impatriate regimes. The obligation to file nominative lists of employees benefiting from the profit-sharing bonus (« prime participative ») and the impatriate regime is removed, the information being available to the tax authorities from the electronic salary statements.
- Personal income tax scale. The scale is adjusted to inflation by one additional index tranche (about 2.5%) from tax year 2027: the exempt bracket extends to EUR 13,565 and the top rate of 42% applies above EUR 240,803, the parameters of tax class 1a being adjusted accordingly.
Next steps
The bill now follows the ordinary parliamentary process and will be examined by the Finance Committee, opinion of the Council of State and vote in plenary session, expected in mid-December 2026. If passed, the law would enter into force on 1 January 2027 and the tax measures would generally apply from tax year 2027.
How can we help you?
Our Tax team is at your disposal to assess the impact of these measures on your company, your investment structures and your personal situation.
