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How UCITS ETFs are taxed in Luxembourg

A quick reference for Luxembourg-resident investors holding UCITS ETFs — dividend and capital-gains tax, the reduced US withholding rate via tax treaties, allowances, and whether accumulating or distributing is more efficient.

Dividend tax
15%
Capital gains tax
0%
US withholding (treaty)
0%
Wealth tax
No
Tax-free allowance
1,500 EUR
Ireland tax treaty
Yes

Tax notes for Luxembourg

No CGT on ETF gains. 15% dividend withholding. €1,500 allowance. Major financial hub — excellent treaty network.

Accumulating vs distributing: Strong — no CGT makes accumulating highly efficient. Learn more →
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Calculate your exact net income

Upgrade to Pro to model any UCITS ETF in Luxembourg — withholding, local tax, allowances and your real take-home income.

Related: UCITS withholding tax explained · UCITS vs US ETFs · All countries

Educational information only, not tax advice. Rates change and depend on your circumstances — verify with a qualified adviser.