Luxembourg offers an attractive regulatory environment for ICT services. Regulatory monitoring instruments have been developed to provide a regulatory framework adapted to the latest technological developments.
Luxembourg was, moreover, the first member of the EU to transpose European Union directives on electronic signature and electronic commerce.
Luxembourg’s authorities have created a safe IP environment by implementing EU directives as well as international agreements and treaties, such as the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) to secure IP rights.
Since 2008, Luxembourg has been offering an attractive framework for managing intellectual property and domain names. Thus, Luxembourg was the first EU member state to provide an attractive fiscal environment for the portfolio management of domain names.
Due to this new legislation, income from patents, trademarks, design, models, software copyrights or domain names acquired or created after 31 December 2007 benefit from an 80% tax exemption. This may apply also for deemed IP-income if the IP is created for a company’s own use. Capital gains generated on IP will also be exempt up to 80%.
Furthermore, on 1 January 2009, net wealth tax was abolished on qualifying IP.
(Sources: Media and Communications Service, and Luxembourg, your prime business location)