Luxembourg - Real Estate Murabaha Structures in Luxembourg
- J-L. Fisch; P. Mischo
- European Taxation, 2010 (Volume 50), No 11
- 5 October 2010
Although Luxembourg has long been an attractive destination for Islamic financing, murabaha structures, which are used to finance the acquisition of an asset, typically real estate, have not been as popular in Luxembourg due to uncertainty regarding their tax treatment. The authors, in this article, outline two new Circulars that partially clarify the applicable tax treatment and comment on certain VAT and registration duty issues that still need to be resolved.