On 7 October 2026, Finance Minister Gilles Roth presented Luxembourg’s draft budget for 2027 to parliament as bill no. 8800. For families with investments and holding structures in Luxembourg, one number stands out: the period in which a gain on shares counts as “speculative” would double, from six months to twelve. This is a draft, and parliament can still change it.
The speculative period
Today, a resident individual who sells privately held shares within six months adds the gain to other income and pays tax at progressive rates. After six months, gains on holdings of up to 10% are tax-free. Speculative gains below €500 a year stay untaxed, Paperjam explains.
The bill would make that twelve months. According to Goodwin and Loyens & Loeff:
- the change covers movable assets, including shares held privately;
- the rule for shareholdings above 10% changes in step; such holders are not exempt after the period anyway and pay tax at half the usual rate;
- non-residents are affected where Luxembourg law can tax their gains on large holdings and no tax treaty prevents it.
If passed as filed, it applies from tax year 2027. Paperjam notes that the draft has no explicit transition rule for shares bought in 2026 and sold in 2027. Roth’s summary, as quoted by Paperjam: “We support investment. Not speculation.”
Carried interest is affected too. Under the reform parliament approved on 22 January 2026, carried interest linked to a stake of no more than 10% in a fund is exempt if held for more than six months, according to law firm Stibbe. The bill would extend that to twelve months.
Other measures
- Gifts of businesses. The budget announces an exemption for transfers of businesses by gift in the direct line or to a partner, Paperjam reports. PwC Luxembourg says details are still awaited.
- Property gains. From tax year 2028, tax on gains from property sales is expected to be withheld when the sale takes place, rather than paid later on a tax return, according to PwC Luxembourg.
- Corporate tax. The government’s own announcement confirms a one-point cut. According to PwC Luxembourg, the rate falls from 16% to 15% for profits above €250,000, and from 14% to 13% up to €200,000. In Luxembourg City, the combined rate would fall from 23.87% to 22.80%. The 17-year limit on carrying losses forward would go.
Some well-known family holdings are based in Luxembourg, such as the Del Vecchio heirs’ Delfin. For how holding structures work in general, see our guide.
What to watch
- Amendments to bill no. 8800, including any transition rule for shares bought in 2026.
- The text of the business gift exemption: which companies qualify and on what conditions.
- How the 2028 withholding on property gains will work in practice.
A fair caveat
All of this is a draft. The property withholding is reported only by PwC Luxembourg among the sources we found, and the gift exemption has no published details yet.
Questions to bring to your advisors
Do any of our shares, fund stakes or carried interest fall due for sale between six and twelve months after purchase? Would a planned gift of a family business fit the new exemption once its terms are known? These are questions to bring to your lawyers and tax advisors, not advice.