A Luxembourg Holding Company is a resident company in the tax haven of Luxembourg which operates subsidiaries. Guardian Industries Corp, Amazon, Millicom, PayPal, Apple iTunes, DuPont Teijin Films, Fanuc Robotics, and Skype have all chosen Luxembourg for their European business headquarters. In addition, ArcelorMittal (the world’s leading steel producer), SES (the world’s largest satellite firm), Cargolux (the largest all-cargo airline in Europe) and RTL Group (a major pan-European broadcaster) all have their global headquarters based in Luxembourg.
The Luxembourg holding company has the following benefits:
- Permitted to carry out offshore activities.
- Exempted from paying taxes on dividends.
- Exempted from paying withholding taxes if the beneficiary is another Luxembourg holding company or a company incorporated in the European Union.
- Exempted from paying capital gains tax.
- No need to declare to the authorities who the beneficial owners of the company are.