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Generic Tax Name Capital tax - Inheritance tax
Tax name in the national language Droits de succession
Tax name in English Inheritance tax
Member State LU-Luxembourg
Tax in force since 1817/12/27
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Law of 27 December 1817 on estate duty;

Laws of 18 August 1916, 7 August 1920 and 31 January 1921 increasing the estate duties;

Amending Law of 16 June 1950;

Law of 13 May 1964;

Law of 13 June 1984 amending certain legislative provisions;

Law of 9 July 2004 amending certain legal provisions; various other Grand Ducal laws and regulations.

Law of 18 december 2009 on inheritance tax and death related transfer tax.

Various other laws and Grand Ducal Decrees.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope

Grand-Duchy of Luxembourg.

 
Taxpayers

Residents: Heirs and legatees of deceased persons.

Non-residents: Heirs and legatees of deceased persons non domiciled in Luxembourg in case of real estate located in Luxembourg.

 
Tax object and basis of assessment

Wealth (inheritance).

 

Residents: Market value at the time of decease of the entire net estate inherited from a person domiciled in Luxembourg, except for real estate located abroad and movable goods located abroad in certain cases.

Non-residents: Market value of real net estate located in Luxembourg at the time of decease.

 
Deductions, Allowances, Credits, Exemptions

For the calculation of the death duties or duties by death an abatement of EUR 38,000 is carried out on the net share collected or acquired by the surviving spouse in the succession of the spouse predeceased without leaving one or more children born from their common marriage or from the descendants of those and on the net share collected or acquired by the surviving partner in the succession of the predeceased partner, connected by a declaration of partnership registered for more than three years before the opening of the succession, without leaving one or more common children or descendants of those.

Is free of the death duty or duty by death:

  • all that is collected or is acquired in the direct ascending line (except for shares not sanctioned by law in the direct ascending line);
  • all that is collected or is acquired between spouses, leaving one or more children born from their common marriage or descendants of those
  • all what is collected or is acquired between partners, connected by a declaration of partnership registered for more than three years before the opening of the succession, leaving one or more common children or descendants of those;
  • all that is collected or is acquired by the surviving spouse in the succession of the spouse predeceased or by the partner surviving in the succession of the predeceased partner and connected by a declaration of partnership registered for more than three years before the opening of the succession, in usufruct or as a pension or as periodic remuneration, if, by the death of the first to die, their children from a previous marriage or from a partnership, or the descendants of those, acquired the property or were charged with the pension or with the periodic remuneration;
  • all that is collected or acquired in the succession, if the totality of the value of the succession, setting aside the debts, is not above EUR 1,250.
 
Rate(s) Structure

Residents (death duty):

a. - between spouses without common children nor descendants: ...5%
   - between partners, connected by a declaration of partnership registered for more than three years before the opening of the succession, without common children or descendants:...5%

b. between brothers and sisters:
   - on what they collect intestate:...6%
   - on what they collect beyond:. .15%

c. between uncles or aunts and nephews or nieces, between adopted and adoptee:
   - on what they collect intestate:...9%
   - on what they collect beyond:. ..15%

d. between great-uncles or great-aunts and small nephews or small nieces, between adoptee and the descendants of
   adopted:
   - on what they collect intestate:...10%
   - on what they collect beyond: . .15%

e. between all other parents or persons not related:...15%

If the taxable net value of the shares collected by each having right exceeds EUR 10,000, the rate of the death duties is raised gradually by 1/10 to 22/10 (on the share exceeding EUR 1,750,000).

 
Tax due date

Tax due after usually six months following the moment of death.

 
Tax collector

Indirect tax administration (Administration de l'enregistrement et des domaines).

 
Special features

 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d91aa

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 71.10 EUR 0.16
2011 43.40 EUR 0.10
2010 50.20 EUR 0.13
2009 52.30 EUR 0.14
2008 53.30 EUR 0.14
2007 46.50 EUR 0.13
2006 47.50 EUR 0.14
2005 44.00 EUR 0.15
2004 40.70 EUR 0.15
2003 47.70 EUR 0.18
2002 32.40 EUR 0.13
2001 23.70 EUR 0.10
2000 23.00 EUR 0.10

Comments