Intellectual property (IP) is increasingly important as a driver of economic development and as a source of market value. Managing, consolidating and migrating IP portfolios to the optimal location has become a vital corporate strategy. Luxembourg is aware of the challenges of IP management, and is committed to an environment that supports intellectual property creation and development.  The Grand Duchy's policies and programs are aligned with all major IP treaties and conventions to provide a safe, secure IP environment built on compliance with European Union law and international agreements.

Among Luxembourg's unique and specific benefits for IP creation and management are an 80 percent tax exemption on income generated from the commercial use or capital gains from the sale of IP, along with complete exemptions of IP from net worth taxes. Qualifying property includes software copyrights, patents, trademarks, models, designs, and domain names.  Net income is defined as gross royalty income received by the taxpayer minus expenses accrued in connection with the income, such as annual amortizations and impairments.  Capital gains on IP benefit from the 80 percent exemption under similar rules.

And there is more. R&D expenditures are fully deductible if no commercial results are forthcoming. IP development is backed by the National Research Centers and the University of Luxembourg, as well as by government-supported business incubators and R&D incentives.

These policies and initiatives make Luxembourg the top choice for developing, protecting, and managing IP and for optimizing the financial benefits thereof, enabling companies and organizations to position IP as a cornerstone of their innovative economic models.