On 22 January 2026, the Luxembourg Parliament (Chambre des Députés) approved law n° 8590 (the Law), introducing a complementary and modernised carried interest tax regime. The new provisions aim to broaden the scope of application and clarify the tax treatment of carried interest for Luxembourg resident individuals, thereby increasing legal certainty in this complex area.
Applicable as from fiscal year 2026, the Law introduces a more favourable tax framework covering a wider array of carried interest structures and expanding the pool of eligible beneficiaries, which was previously limited to employees of Alternative Investment Funds (AIFs). It also addresses longstanding challenges in classifying carried interest income.
We are pleased to share our expert insights on the key features of the Law with you. Your understanding of these changes is crucial, and we are here to provide you with the necessary information.
For more information, contact Van Campen Liem
Raffaele Gargiulo, Partner - raffaele.gargiulo@vancampenliem.com
Diego Gonzalez Manso, Senior Associate - diego.gonzalezmanso@vancampenliem.com