For residents in the Grand Duchy of Luxembourg
The law of 23 December 2005 ("Law introducing a domestic withholding tax on certain interest income on interest payments") introduced new tax provisions for Luxembourg taxpayers :
Since 1 January 2006, certain income interest received in Luxembourg by a natural person resident in Luxembourg is subject to a final withholding tax. Since 1 January 2017, the withholding tax amounts 20%.
At the same time as the introduction of this new withholding tax, wealth tax is abolished for individuals from 2006.