Lawyer specializing in Franco-Luxembourg taxation

Developing its activities between France and Luxembourg

Luxembourg occupies a strategic place in economic exchanges with France. Many French companies establish a subsidiary or holding company there, while border managers, investors and workers operate on both sides of the border. This proximity implies perfect control of international tax rules in order to secure operations and prevent the risk of double taxation.

The application of the Franco-Luxembourg tax convention, together with national legislation, requires an analysis adapted to each project. An anticipation of tax issues makes it possible to support the development of an activity or the management of a cross-border asset.

Structure an establishment in Luxembourg

Choose a suitable structure

The creation of a subsidiary, holding company or branch in Luxembourg has varied economic and heritage objectives. Each structure has different tax consequences which should be assessed in terms of activity and relations with French society.

An appropriate organization ensures that financial flows between entities are secure while respecting the tax requirements applicable in both states.

Preventing risks of permanent establishment

An enterprise may be taxed in a foreign state when it has a permanent establishment in it. This qualification depends in particular on the presence of premises, employees or a sustainable activity in the territory.

A prior analysis identifies the risks associated with the chosen organisation and adapts the structure of international activities.

Taxation of executives and investors

Tax residence and international mobility

Leaders sharing their business between France and Luxembourg should pay particular attention to determining their tax residence. It is a condition for the taxation of their income and the application of the tax treaty between the two countries.

Expatriation, return to France or cross-border activity projects require a thorough study to anticipate their tax consequences.

Management of an international heritage

Real estate investment, participations in Luxembourg companies and capital income may be subject to specific tax rules.

An appropriate heritage strategy ensures that assets are held, transferred and reported.

Securing flows between France and Luxembourg

Transactions between French and Luxembourg companies must be organised in accordance with the rules on transfer prices, withholding taxes and intra-group agreements.

Appropriate documentation and prior legal analysis help to limit the risk of tax recovery and secure relations between the different companies within the same group.

Support for Franco-Luxembourg taxation

Our firm supports individuals, executives, investors and international groups in their operations between France and Luxembourg.

We intervene in the areas of investment structuring, the creation of subsidiaries, international mobility, property transfer and tax controls or litigation with an extraneous element.

Our approach is to propose legal solutions adapted to the objectives of our clients, while ensuring that their operations comply with the French and Luxembourg rules and the provisions of the applicable tax convention.