Focussing on innovation
Unlike some other jurisdictions across Europe, Luxembourg is defined by its commitment to innovation. This is because its government long ago accepted that the strength of the economies of the twenty-first century is underpinned by knowledge, research and development, and, of course, intellectual property.
Whether it is a brand, trademarks, information technology, software coding, patents, logos, or other aspects of intellectual property such as internet domain names, it can be difficult for some countries to understand the intangible and considerable value of IP; not so in Luxembourg, where, with the right advice and structures, it is possible to make provision for a securer, clearer, more profitable future.
Demonstrable commitment
Luxembourg's commitment to protecting intellectual property is made clear in a number of arrangements and agreements, from the Paris Convention, the Patent Cooperation Treaty and the Bern Convention, to the way it has quickly and cleverly implemented European Directives such as the agreement on the Trade-Related aspects of Intellectual Property Rights.
Favourable tax regime
The tax regime, which came into effect in the country on 1 January 2008, ensures favourable taxation rates for many investors from a broad range of sectors.
Central to this favourable intellectual property tax regime is the 80% exemption on the royalties and capital gains derived from a wealth and variety of intellectual property. In fact, the tax rate applied to qualifying intellectual property may be as low as 5.84%.
Who benefits?
Many groups have the potential to benefit from Luxembourg's various enticements. Whether the promoter is a large corporation, a start-up, an artist, a writer, an engineer or an SME, incentives and arrangements, such as Luxembourg intellectual property securitisation vehicles, offer world-leading reward to research and development and other aspects of intellectual property.
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