Luxembourg - New attractive carried interest regime
On 22 January 2026, the Luxembourg parliament adopted a reform of the carried interest regime (the “Law”)1, aiming at extending its benefits, making it more attractive, and clarifying its tax treatment. This reform2, applicable from fiscal year 2026, supports Luxembourg's strategic aim to reinforce its status as a leading European hub for alternative investment funds (“AIFs”) by attracting front-office roles and aligning the carried interest framework with prevailing market practices....By: Hogan Lovells
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