Explore our 2026 Personal Tax Guide

Six key highlights for 2026
 

• New carried interest regime: A revised framework designed to enhance Luxembourg’s attractiveness for investment professionals and fund managers.
• Pension reform: An increased tax deduction limit for third pillar pension plans, encouraging private savings, alongside higher pension contributions through the first pillar (social security) to support the long-term sustainability of the system.
• New tax credits: Introduction of targeted measures, including a tax credit for startup investments, as well as additional support for taxpayers.
• Simplified reporting for prime participative: Streamlined administrative procedures reduce the compliance burden for employers.
• Digitalization and simplification: Ongoing efforts to make reporting and compliance processes more efficient, user-friendly, and secure.
• Changes in real estate measures: The phase-out of certain existing incentives, combined with the introduction of new rules, including revised holding period for real estate investments.

Our 2026 Personal Tax Guide provides a clear and practical overview of these developments in a concise, easy-to-read format. Whether you are an employee, employer, or advisor, it will help you navigate and understand Luxembourg’s evolving tax landscape.