White & Case's Luxembourg office was established to support private capital and cross-border investment, recognizing the need for a physical presence to serve clients' most strategic transactions. The office operates as a fully integrated, multi-practice platform, handling M&A, private equity, fund formation, structuring, tax, and disputes, and works closely with colleagues across EMEA, the US, and the Middle East. As client expectations have shifted toward coordinated, full-service legal teams, the Luxembourg office has grown by over 70% and now supports more than 250 clients on 800 matters annually. The firm aims to deepen its private capital capabilities, expand its reach to US and Middle East investors, and remain the leading international law firm in Luxembourg for complex matters.
Luxembourg confirms a clear and competitive carried interest framework
Luxembourg has adopted a new carried interest tax regime, effective 1 January 2026. The regime clarifies eligibility for carried interest, covering both management and service providers involved with alternative investment funds (AIFs). It distinguishes between contractual and participation-linked carried interest, each with its own tax treatment, and recognizes deal-by-deal carry structures. The rules apply to all fund types and neutralize tax transparency, providing asset managers with greater predictability and flexibility. This reform further strengthens Luxembourg's position as a leading global investment platform.
The articles are reproduced with permission from LIR Luxembourg Edition 5.
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