Luxembourg Times quotes Yacine Diallo on the revamp of Luxembourg's impatriate regime and the associated benefits
Many high net worth individuals, wealthy families and senior financial executives have been moving out of the UK following the elimination of its "non-dom" tax regime, a move that is creating competition between Luxembourg and Italy as a ripple effect.
One draw for financial sector professionals to the Grand Duchy, for those moving from the UK or elsewhere, could be the country's recent impatriate regime reform.
The regime cuts up to 200,000 (euro) off a qualifying expat's tax bills for the eight years after the completion of the tax year that the expat arrives. The stated aim of the scheme is to cushion the blow of relocation expenses for employees and employers, such as housing, school and travel costs.
Yacine Diallo, Corporate Tax Partner and Head of our Luxembourg office, comments:
The revamp was a smart move and is likely to help attract highly skilled individuals.
"For instance, heads of family offices and heads of investment management at family holding companies, whether currently based in the UK or Switzerland, might now consider relocating to Luxembourg.
"This legislation does not specifically target wealthy families or individuals based in the UK, but rather skilled professionals with the expertise to help these families manage their investment hubs.
Yacine adds that Luxembourg cannot compete with global players in terms of tax incentives. While Italy offers an expat tax regime, Yacine notes that people with non-dom status choose London for its business environment, cultural offerings, and global connectivity, not just for tax benefits.
Read the full piece in Luxembourg Times here.
