What tax regime applies to bonds in Luxembourg?

Thanks to its attractive tax framework, Luxembourg is a dream destination for many investors. But what is the reality? What tax environment does Luxembourg offer? How is income from Luxembourg-based investments taxed?

We’ve summarized everything you need to know before investing in Luxembourg!

🔎 To go further:

• Mastering the taxation of your responsible investments

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What tax applies to my income?

Luxembourg tax resident

If you are a Luxembourg tax resident, you are subject to a final withholding tax of 20%. This tax is deducted directly at the time your interest is paid.

Non-Luxembourg tax resident

If you invest in bonds issued by a Luxembourg company, please note that, except in specific cases, no additional Luxembourg withholding tax applies.

Whether you are an individual or a legal entity, you are taxable only in your country of residence, in accordance with its domestic law and the tax treaties concluded between Luxembourg and that country.

In France, for example, income is taxed at a flat rate of 31.4% under the PFU (Prélèvement Forfaitaire Unique – flat tax), which includes income tax (12.8%) and social contributions (18.6%).

Do I need to provide my Tax Residence Certificate (TRC)?

Although Luxembourg does not apply double taxation in this context, in practice it is always advisable to provide your Tax Residence Certificate (TRC) to ensure that the correct tax regime is applied.

How can I obtain it?

If you are a French tax resident, the process is simplified on Enerfip.

Your TRC is already pre-filled and downloadable from your personal account. It will be available in the months preceding your interest payment.

All you need to do is send it to the French tax authorities via the secure messaging system in your personal account on impots.gouv.fr.

Once signed and returned by the tax authorities, simply upload it to your Enerfip account. We’ll take care of the rest.

If you are a tax resident of another country, please contact your local tax office for guidance.

Where can I find it in my Enerfip account?

From your personal account, your Tax Residence Certificate can be found in different sections depending on your file status:

• If signed, it will appear in the “Documents” section.
• If pending validation, it will be available under “Tax status” in the “My account” section (accessible by clicking your first name in the top-left corner).

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Now that you know everything about Luxembourg taxation, don’t wait any longer to invest in a project issued by a Luxembourg company!

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For any additional information, please contact the Investor Relations team by phone at +33 (0)4 11 93 41 11 or by email at: [email protected].

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