The EU Directive on Taxation of Savings Income came into force on 1 July 2005. Since then, Luxembourg has applied a withholding tax on interest income within the scope of the Directive while at the same time preserving banking secrecy.
The Directive has an impact on some, but not all, types of income. BGL BNP Paribas offers a variety of alternatives, with insurance policies, funds and structured products generating tax-exempt income.
Income not affected by withholding tax nonetheless remains subject to fiscal regulations applying in each investor's country of residence.
You should remember that the tax status of a financial instrument may vary and thus current status is no guarantee of future status, in particular because it is exposed to changes in the law. Before you make any commitment, we strongly advise you to contact your BGL BNP Paribas adviser, who will be able to give you the information you need about the instrument's tax status.
