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construction at the normal VAT rate. VAT is levied at the
standard rate of 17% (as at 1 January, 2015) and assessed,
in principle, on the purchase price. The rent of properties is
a VAT exempt activity except in case of properties used for
commercial purposes, when a joint VAT option has been
exercised.
• In addition, notary fees are levied at a proportional rate
determined on the basis of the purchase price (with a
maximal threshold).
Acquisition of shares in a company holding a property
Contribution of a property located in Luxembourg
• The contribution of a property located in Luxembourg
to a corporation or a partnership is subject to a reduced
registration duty of 0.6% (plus a municipal surcharge of 50%,
where applicable) and a reduced transcription duty of 0.5%
when such contribution is in exchange for shares.
Companies investing predominantly in real estate (special
purpose vehicles (SPV))
• From a tax perspective, the transfer of shares in a company
holding a property located in Luxembourg should not impact
the ownership of the property. Therefore, no registration or
transcription duties should be due.
• The disposal of the shares held in the share capital of an
SPV is not subject to any Luxembourg indirect tax (including
stamp duty) if such disposal is not recorded in a Luxembourg
notarial deed. When a share purchase agreement is submitted
to registration voluntarily, a fixed registration duty of EUR 12
will apply.
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Investors Guide to Europe 2015