High taxes despite tax-haven reputation

Rental Income: Rental income is taxed at progressive income tax rates ranging from 8% for net annual income exceeding €11,265, to 40% on income above €100,000.

Capital Gains: If the property is held for more than two years, capital gains tax rates are reduced to a maximum of 19.475%.

Inheritance: Inheritance of the spouse and children are exempt from taxation.

Residents: Residents of Luxembourg are taxed on their worldwide income at progressive rates, from 8% to 40%.

source: http://www.globalpropertyguide.com/Europe/Luxembourg

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