Although Luxembourg is a land locked country, since the early nineties, it has provided an attractive legal framework for the maritime industry.
Luxembourg offers a favourable tax system for shipping companies, with the possibility of accelerated depreciation and tax credits available for investments. Registration under the Luxembourg flag is open to vessels owned more than 50 per cent by a resident of the European Union/European Economic Area or by a commercial company having its registered office in a Member State of the EU/EEA. A ship-owner may also appoint an EU-based operator to register the vessel in its own name.
Ship financing is tailored to suit the needs of the parties involved, with various solutions such as bank lending, bond issuances, and securitisations possible. Maritime mortgages are also offered in Luxembourg, making it attractive to banks and financial institutions.
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