Taxation of savings for non-residents from the E.U.

Withholding tax

For residents in the European Union (apart from the Grand-Duchy of Luxembourg)

The law of 21 june 2005, law on taxation of savings income in the form of interest payments, adapts European Directive 2003/48/CE to national law.
This law provides for the application of a withholding tax of 15% on investment income payable in Luxembourg by non-residents from the European Union from 1 July 2005 until 30 June 2008, and then of 20% until 30 June 2011.

Luxembourg has opted to maintain banking secrecy in return for deducting withholding tax. Other European countries have opted for a system of automatic exchange of data.

Many investment products do not generate taxable interest payments in the meaning of the European Directive. Contact our advisers for help with choosing your investments.

For more information see also our brochure " Taxation of savings in EU" (French & German version only).

The purpose of this information is to keep you informed generally, but not necessarily thoroughly, about changes with regard to the tax position of your savings income. For further information, please contact your usual adviser or a tax expert familiar with the tax aspects of your personal circumstances.