Please ensure Javascript is enabled for purposes of website accessibility


Big things are happening at Ogier. Change is embedded in everything we do. It is redefining our talent, our ways of working, our platforms of delivery, our culture.



We have the expertise to handle the most demanding transactions. Our commercial understanding and experience of working with leading financial institutions, professional advisers and regulatory bodies means we add real value to clients’ businesses.

View all services

Business Services Team

View all Business Services Team


Our sector approach relies on smart collaboration between teams who have a deep understanding of related businesses and industry dynamics. The specific combination of our highly informed experts helps our clients to see around corners.

View all sectors


Ogier provides practical advice on BVI, Cayman Islands, Guernsey, Irish, Jersey and Luxembourg law through our global network of offices across the Asian, Caribbean and European timezones. Ogier is the only firm to advise on this unique combination of laws.

News and insights

Keep up to date with industry insights, analysis and reviews. Find out about the work of our expert teams and subscribe to receive our newsletters straight to your inbox.

Fresh thinking, sharper opinion.

About us

We get straight to the point, managing complexity to get to the essentials. Our global network of offices covers every time zone. 

No Content Set

Luxembourg minimum net wealth tax declared unconstitutional


07 December 2023

Luxembourg Legal Services

1 min read


On 10 November 2023, the Constitutional Court of Luxembourg declared the minimum net wealth tax regime in force partially unconstitutional.

Before delving into the details of the judgement, a basic understanding of the Luxembourg net wealth tax regime is required.

Understanding the existing net wealth tax regime

The net wealth tax regime can be divided into two categories: the normal net wealth tax and the minimum net wealth tax.

Normal net wealth tax (NWT)

As per paragraph 8 (1) of the amended law of 16 October 1934 (also known as the "Vermögensteuergesetz" - VStG) concerning the NWT, Luxembourg companies are subject to the normal NWT at the following rates:

  • 0.5% for net wealth below EUR 500 million.

  • 0.05% for net wealth exceeding EUR 500 million.

These rates are applicable to the worldwide net wealth of the taxpayer, unless a double tax treaty or a specific legal provision (such as an exemption for certain categories of assets) states otherwise.

Minimum net wealth tax (MNWT)

According to paragraph 8 (2) VStG, Luxembourg companies whose financial assets, transferable securities, and cash deposits exceed 90% of their total balance sheet and with a balance sheet total exceeding EUR 350,000, are subject to an annual MNWT of EUR 4,815.

Other companies are subject to a progressive MNWT, ranging from EUR 535 to EUR 32,100, depending on their balance sheet total.

The Constitutional Court judgement

The Constitutional Court stated that the annual MNWT of EUR 4,815 is not compliant with Article 15 of the current Luxembourg Constitution, which provides for the principle of equality before the law for all Luxembourgers (individuals and legal entities).

This principle of equality extends to tax matters through the principle of tax contribution according to the taxpayer's contributory capacity.

The Constitutional Court stated that such principle of contributory capacity is not respected for companies whose financial assets, transferable securities, and cash deposits exceed 90% of the total balance sheet and whose balance sheet total is between EUR 350,000 and EUR 2,000,000 (the Eligible Companies). The Court also ruled out that, as a matter of principle, when comparable tax payers fall under two different schemes, the most favourable one should apply.

In conclusion, pending legislative reform, the Constitutional Court provided for a favourable decision for Eligible Companies which should then be subject to a progressive MNWT of EUR 1,605 instead of the EUR 4,815.

About Ogier

Ogier is a professional services firm with the knowledge and expertise to handle the most demanding and complex transactions and provide expert, efficient and cost-effective services to all our clients. We regularly win awards for the quality of our client service, our work and our people.


This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

Regulatory information can be found under Legal Notice

No Content Set