Forex Trading Tax in Luxembourg 2026 — Complete Guide

Forex Tax Treatment in Luxembourg

Capital gains from financial instruments held less than 6 months are taxed at half the marginal income tax rate (effective ~21-23%). Gains on instruments held 6+ months are generally exempt below a EUR 500 threshold. A solidarity surcharge of 7-9% applies.

Forex and CFD profits are normally classified as capital gains or other investment income. The exact category and rate depend on national tax law.

Tax Rates Table — Luxembourg EUR

Applicable rates as of August 2026.

What Counts as Taxable?

Most Luxembourg residents need to declare the following types of trading income:

• Realised forex/CFD capital gains. Profits from closing positions during the tax year.
• Dividend-equivalent payments. Cash adjustments paid by your broker on long share-CFD positions when the underlying issues a dividend.
• Carry / swap interest received. Positive overnight financing credited to long carry-trade positions is normally taxable as financial income.
• Cashback, rebates and bonuses. Cash incentives paid by the broker may be reportable as miscellaneous or financial income.
• Crypto CFD profits. Profits from cryptocurrency CFDs are taxed under the same rules as other CFDs (this is different from spot crypto, which usually has its own treatment).
• Foreign exchange differences. Gains or losses from holding foreign-currency balances may need to be reported separately when converted back to your home currency.

Professional vs Retail Trader — Tax Implications

If trading rises to the level of a business activity, profits typically shift from capital gains to ordinary income with social contributions.

How to Declare Forex Income in Luxembourg

1. 1

   Download your annual statement from each broker (and convert all amounts to EUR using year-end FX rates if your account is in another currency).

2. 2

   Calculate net realised profit or loss for the tax year — buy/sell pairs only (unrealised positions are usually excluded, except for mark-to-market regimes).

3. 3

   Add carry/swap interest, dividend-equivalent payments, and any cashback or rebates.

4. 4

   Open Annual income tax return on the National tax authority portal.

5. 5

   Enter the totals in the capital-gains / investment-income section and indicate the source country of each broker.

6. 6

   Pay any balance owed by the deadline (See national tax authority) and keep the receipt and broker statements with your records.

Loss Offset Rules

Record Keeping Requirements

Keep annual broker statements and trade ledgers for at least 6 years.

• Annual broker statements (PDF and machine-readable formats)
• Trade-by-trade ledger with timestamps, instrument, and P&L
• Year-end account valuation (mandatory for wealth-tax regimes)
• Proof of any foreign tax already paid, to claim against home liability under double-tax treaties
• FX-conversion rates used to translate amounts into EUR

Tax Reporting Deadlines

Recommended Accountants & Software

Use the national tax authority's online portal or a local tax advisor.

We do not endorse any single product. For active traders we generally recommend a local advisor who has direct experience with CFD/derivative reporting and any cross-border passporting that applies to your broker.

Frequently Asked Questions

Popular brokers used by Luxembourg traders

IG9.2EU

Min Deposit

None

EUR/USD

0.6 pips average

Max Leverage

Up to 1:30

ASICAustralia

IG is one of the longest-established retail brokers (founded 1974), offering 17,000+ instruments, a BaFin-regulated EU entity, and an award-winning proprietary platform.

This broker does not accept new clients from your regionReview

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Saxo Bank9.0EU

Min Deposit

None

EUR/USD

0.6 pips

Max Leverage

Up to 1:30

ASICAustralia

Saxo Bank is a fully licensed Danish bank offering 72,000+ instruments including real stocks, bonds, and futures via its award-winning SaxoTrader platform.

This broker does not accept new clients from your regionReview

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. A high percentage of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Pepperstone9.4EU

Min Deposit

None

EUR/USD

0.0 pips

Max Leverage

Up to 1:500

ASICAustralia

Pepperstone serves EU clients through its CySEC-regulated entity (part of a group also licensed by BaFin, the FCA and ASIC), offering razor-sharp spreads, zero minimum deposit, and excellent execution across MT4, MT5, cTrader, and TradingView.

Open AccountReview

79.6% of retail CFD accounts lose money.