Inheritance Guide
Inheritance Planning in Luxembourg: A Financial Hub With Old-World Rules
Luxembourg may be famous as a global financial center, but its inheritance law is firmly rooted in the Napoleonic Code tradition shared with France and Belgium. Forced heirship rules reserve a substantial portion of your estate for your children, and the system relies heavily on notaries. The good news for families is that direct-line inheritances (to children and spouses) are exempt from inheritance tax. The complexity arises when your estate includes Luxembourg-based investment funds, insurance products, or real estate alongside assets in other countries.
Inheritance Tax
Transfers between spouses and direct-line relatives (children, parents, grandchildren) are fully exempt from inheritance tax. Siblings pay 6% on their share of moveable property and 2.5% on the first EUR 10,000 of real estate. Other relatives and non-relatives pay progressive rates from 9% to 15% plus a communal surcharge of 2.5x, resulting in effective rates up to 48%.
Forced Heirship
Luxembourg follows the French model of forced heirship. One child is entitled to at least 50% of the estate. Two children share at least 66.7%. Three or more children share at least 75%. The surviving spouse does not have a forced share but has strong usufruct rights.
Key facts about inheritance in Luxembourg
The details that matter most when planning for your family's future in Luxembourg.
- 1
No inheritance tax between spouses and direct-line descendants and ascendants
- 2
Other beneficiaries pay rates ranging from 2.5% to 15% (plus a surcharge) depending on relationship and value
- 3
Forced heirship reserves 50% to 75% for children (identical to the French system)
- 4
Luxembourg applies EU Succession Regulation 650/2012
- 5
Notarial involvement is mandatory for real estate transfers
What makes Luxembourg different
These are the considerations unique to Luxembourg that most families don't discover until they need to.
Luxembourg-domiciled investment funds and insurance products (assurance-vie) have their own cross-border succession implications
The country's multilingual nature (French, German, Luxembourgish) means legal documents may exist in multiple languages
Luxembourg's role as a holding company jurisdiction means many estates include corporate structures requiring specialized succession planning
Real estate transfer taxes apply even to exempt inheritance transfers (transcription duties)
Documents commonly needed in Luxembourg
The documents families typically need when dealing with inheritance matters in Luxembourg.
Testament Olographe (handwritten will)
Testament Authentique (notarial will)
Mandat de Protection Future (future protection mandate)
Certificat Successoral Europeen (European Certificate of Succession)
Start documenting your legacy
No matter where your family is, the most important step is starting. Our AI-guided tools help you create the documents your loved ones need — in plain language, at your own pace.
Ready when you are
Your family deserves clarity.
AI-guided tools that walk you through every document, step by step — no blank pages, no confusion.
Start for $9.99/monthCancel anytime. Zero digital footprint.
Nearby country guides
Important disclaimer
This content is for general informational purposes only and does not constitute legal, tax, or financial advice. It was created with the assistance of AI and may contain inaccuracies. Inheritance laws change frequently — always consult a qualified attorney or tax advisor in Luxembourg before making decisions about inheritance or estate planning.