Update - List of double tax treaties in force and in negotiation as of January 28, 2013.
Situated at the crossroad of Europe, the Grand-Duchy of Luxembourg is based on a dynamic and open economy which actively promotes the development of cross border trade and investments. Its major role in matter of international trade in the sectors of banking and finance, investment funds and holding companies has for a consequence that a strong network of double tax treaties has been developed over the years. To that end, Luxembourg has entered into 64 comprehensive double tax treaties based on the OECD model tax convention on income and capital in order to mitigate the risks of double taxation for businesses.
The Grand Duchy treaty partners are amongst the most industrialised countries with inter alia all of the states in the European Union but Cyprus, the United States, Japan, Brazil, China, Mexico, Hong Kong and Russia, Canada. Luxembourg Tax treaties as most bilateral agreements are designed and balanced to address a specific economic context. Given their very nature, tax treaties are constantly negotiated and updated to the latest international standards.
For instance, the conclusion of a protocol to the Luxembourg-Russian tax treaty on 21st of November 2011 or the renegotiations of the French Luxembourg treaty are illustrative of that trend. As such, 25 treaties and 12 protocols are still pending approval with a large array of states such as Argentina, Albania, Oman, Saudi Arabia, Egypt, Cyprus, Croatia, New Zealand, Seychelles, Ukraine and Uruguay to name a few.
Another perspective to the steady expansion of Luxembourg tax treaties must be added. Luxembourg endorsed on the 13th of March 2009, the international standard of exchange of information upon request embodied in article 26-5 of the OECD model tax convention. As a result, 23 treaties containing the said standard were concluded, 9 protocols and 3 new treaties are actually pending (draft law 6501 deposited on November 21, 2012 for examination and adoption by the Parliament).