Net Wealth Tax in Luxembourg: Do Self-Employed Pay It?

Short answer: no. As a self-employed person with a sole proprietorship (entreprise individuelle), you do not pay net wealth tax in Luxembourg — the impôt sur la fortune. It was abolished for natural persons in 2006 and now applies only to companies such as a SARL, SARL-S or SA.

This is one more reason a sole proprietorship is cheap to run: no fixed annual tax just for existing, unlike a company.

Why self-employed don’t pay net wealth tax

Luxembourg used to charge net wealth tax on natural persons — individuals who owned significant assets. That changed on 1 January 2006, when the tax was abolished for all individuals, whether resident or non-resident, and for anyone operating through a transparent structure such as a sole proprietorship, SENC (general partnership), SCS (limited partnership), or civil company (société civile).

In tax terms, these structures are “see-through”: the profit flows directly to the partners, and the partners pay only income tax on it. There is no separate entity to tax on its net assets.

This is different from income tax and CCSS. Self-employed still pay both — it’s just the net wealth tax, sometimes called net worth tax, that doesn’t apply. It is a tax on a business’s accumulated assets, not on its income.

Who still pays net wealth tax

Net wealth tax applies to opaque corporate entities, which are taxed as separate legal persons:

• SARL (société à responsabilité limitée)
• SARL-S (simplified SARL)
• SA (société anonyme)
• Other capital companies

These companies pay an annual net wealth tax of 0.5% on their net assets, with a minimum net wealth tax even if they have no assets or are loss-making.

The minimum net wealth tax for companies

The minimum for 2026 depends on the company’s balance sheet total:

Even a dormant SARL with no activity pays at least 535 EUR per year in minimum net wealth tax.

A company pays whichever is higher between the ordinary net wealth tax and the minimum shown above — they are not cumulative. The minimum can also be offset by the prior year’s corporate income tax (IRC + employment-fund surcharge), so a profitable SARL often doesn’t actually pay it in cash. It mainly bites loss-making or low-profit companies.

Practical tip: The minimum net wealth tax is one of the fixed costs that tips the balance when comparing a sole proprietorship to a SARL. Add 535 EUR/year (at minimum) on top of notary fees, annual accounts filing, and corporate tax administration.

What if I switch to a SARL or SARL-S later?

If you incorporate your activity into a SARL or SARL-S, net wealth tax starts applying to the company, not to you personally. You as a shareholder still pay no net wealth tax on your shares or personal assets.

For a full comparison of the tax cost of each legal form, see sole proprietorship vs SARL in Luxembourg.

Quick reference

For more on the taxes you actually do pay as self-employed, see what taxes do self-employed people pay in Luxembourg. If you are choosing between legal forms, see which legal form for your business in Luxembourg.

Not every day is easy when you work for yourself — but every day, you’re creating something that’s yours. Bravo for that.
💜💙 Your BravoLisa Team

This article is for general information purposes only and does not constitute professional tax, legal, or accounting advice. Every situation is different — consult a qualified professional (tax adviser, accountant, or lawyer) for advice specific to your circumstances. BravoLisa does not accept liability for decisions made based on this information.

Last updated: September 2026. Rates and thresholds may change — always verify with the relevant authorities for the most current figures.

Sources verified on 11 September 2026: ACD — Impôt sur la fortune des collectivités, ACD — Administration des contributions directes, Guichet LU — Impôts sur les bénéfices.