Starting a Luxembourg company while living in Germany
Published on 10 October 2026 · Updated on 10 October 2026
In short
A German resident can set up a Luxembourg company and act as its manager. They provide a Führungszeugnis and a notarised non-bankruptcy declaration, which can be made in German. German tax reporting applies to foreign holdings above certain thresholds (section 138 AO). Social security and taxation are checked with a tax adviser.
Key points for a German resident
- Language
- German is an administrative language in Luxembourg
- Criminal record
- Führungszeugnis from the Bundesamt für Justiz, for each country of residence over the last 10 years
- Non-bankruptcy
- Notarised declaration, from EUR 200 excl. VAT, possible in German
- Social security
- A single competent country, Regulation (EC) No 883/2004
Shareholder, manager, employee: five separate planes
- Ownership: being a shareholder requires no presence in Luxembourg. Above 25% of the shares or in case of control, you are declared as beneficial owner to the RBE.
- Management: the manager must effectively run the company for the business permit to be granted and kept.
- Work: the place where you carry out your activity in principle determines your social security.
- Physical presence: an activity subject to a permit requires fixed premises in Luxembourg.
- Tax residence: you remain in principle a German tax resident. Management exercised from Germany may tie the company to Germany.
The path for a German resident
- 1
Order the Führungszeugnis
From your municipality or online using the eID function of your identity card. Allow for the dispatch time from the Bundesamt für Justiz.
You - 2
Choose the language of the deeds
Articles and notarial deeds can be drawn up in German or French depending on the notary. Correspondence with the ministry and the CCSS can be in German.
Lawyer, notary - 3
Non-bankruptcy declaration
Required for a non-resident manager, before a notary.
Notary - 4
Premises, permit, formation
Office in Luxembourg, application on MyGuichet.lu, articles, capital, RCS and RBE within the month.
Ministry of the Economy, bank, LBR - 5
German reporting
Report of the foreign holding with your tax return if you hold at least 10% or if the acquisition cost exceeds EUR 150,000.
You and your Steuerberater - 6
Social security
Affiliation in Luxembourg and registration with your Krankenkasse using form S1.
CCSS, German health fund
What is specific to German residents
- Passive income: if the Luxembourg company mainly receives investment income, the German rules on foreign companies (Außensteuergesetz) should be reviewed.
- Teleworking: for cross-border employees, the tolerance threshold for work outside Luxembourg rose from 19 to 34 days a year under the agreement between the tax administrations. It does not settle a manager’s situation.
- Online procedures: Guichet.lu and MyGuichet.lu are available in German.
Before you sign
We do not give personal tax advice. Have a Steuerberater or a Luxembourg tax adviser confirm the manager’s remuneration, the place of effective management and the risk of a permanent establishment in Germany.
Next step
Set up your company from Germany
SARL from EUR 2,999 excl. VAT, or EUR 4,899 excl. VAT End-to-end. Notary, registration and register fees extra.
Frequently asked questions
Can I draft the articles in German?
In principle yes: German is an administrative language in Luxembourg and many notaries execute deeds in German. A French or English version may help for the bank. The choice is made with the lawyer and the notary at the drafting stage.
Which Führungszeugnis should I request?
An ordinary, up-to-date criminal record extract covering your residence in Germany. If you lived in other countries over the last 10 years, their extracts are needed too. Failing that, a sworn declaration is accepted.
I already work in Luxembourg as an employee: what is the impact?
As a manager holding more than 25% of the shares of a SARL or SARL-S, you also fall under the Luxembourg scheme for the self-employed. As both activities are in Luxembourg, a single system applies. A Luxembourg criminal record extract no. 3 will also be requested.
Do I have to report the company to the German tax office?
A holding in a foreign company is in principle reported with the tax return from 10% of the capital or EUR 150,000 of acquisition cost. Your Steuerberater will confirm the forms and the timetable.