A growing source of corporate value, Intellectual Property (IP) is increasingly driving economic and business development. 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 the creation and development of intellectual property. The Grand Duchy's policies and programmes are aligned with all major IP treaties and conventions to provide a safe, secure IP environment built in compliance with European Union law and international agreements.
Luxembourg is the top choice for developing, protecting, and managing IP and for optimising the financial benefits, enabling companies and organisations to position IP as a cornerstone of their innovative economic models. Among Luxembourg's unique and specific benefits for IP creation and management is an 80% 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.
Therefore, the tax exemption applies for incomes generated from the acquisition and licensing of software copyrights, patents, trademarks, models, designs, and domain names. R&D expenditures are fully deductible if no commercial results are forthcoming. IP development is backed by the National Research Centres and the University of Luxembourg, as well as by government-supported business incubators and R&D incentives.
Furthermore, the IPIL, the Luxembourg Intellectual Property Institute, helps innovative companies and businesses, as well as research stakeholders, public institutions and interested members of the public by providing them national and international expertise in identification, securization, protection, exploitation and legal aspects of IP rights.