Side-by-side on the points that decide where you incorporate: corporate tax, FATF standing, sanctions exposure, data-protection law, arbitration enforceability, apostille, foreign ownership and local-director requirements.
Jurisdiction table checked: 2026-10-02
| United Kingdom [GB] | Luxembourg [LU] | |
|---|---|---|
| Region | Europe (non-EU) | EU |
| Corporate tax rate | 25% | 23.87% |
| FATF status | compliant | compliant |
| Sanctions exposure | No | No |
| EU list of non-cooperative jurisdictions | not listed | not applicable — EU member state |
| Data-protection law | UK GDPR + DPA 2018 | GDPR |
| New York Convention | Yes | Yes |
| Apostille Convention (1961) | Yes | Yes |
| Foreign ownership | Yes | Yes |
| Local director requirement | No | No |
The headline corporate income tax rate in United Kingdom is 25%. Free zones, small-business reliefs and participation exemptions can change the effective rate — treat this as the starting point.
The headline corporate income tax rate in Luxembourg is 23.87%. Free zones, small-business reliefs and participation exemptions can change the effective rate — treat this as the starting point.
United Kingdom appears in neither annex of the EU list as at the current revision.
Luxembourg is an EU member state. The list covers third countries only, so a member state never appears in either annex.
The applicable data-protection statute is UK GDPR + DPA 2018 (in force since 2018). If you process EU/UK personal data you also need a valid transfer mechanism into United Kingdom.
The applicable data-protection statute is GDPR (in force since 2018). If you process EU/UK personal data you also need a valid transfer mechanism into Luxembourg.
Neither is obviously right until you know what you are optimising for — tax, banking, enforcement or speed.
Informational resource curated by the Ignito legal practice and cross-checked against primary sources. This is not legal advice and does not create a lawyer-client relationship. Rules change — verify against the primary source before you sign or file. Terms of Use