Since the 1st January 2015, date of entry into force in the Grand Duchy of Luxembourg of the European Directive on the taxation of savings, automatic exchange of information applies to interests paid by paying agents in Luxembourg to natural persons having their residence in another Member State of the European Union (outside Luxembourg). Interest incomes include bank account interests, savings interests, savings bonds, term deposit accounts, bonds, dividends and capital gains on some bond funds.
In concrete terms, since the 1st January 2015, financial institutions, including banks, have to store information regarding interest payments to their European clients. In March 2016, information about the year 2015, which includes client details and income data (amount and date of each interest payment, account number), will be effectively exchanged by the Luxembourg’s tax authorities with the tax residence country of the client. In 2015, there will be not yet any exchange because information can only indicate interests paid the year before.
Are not concerned for the moment by automatic exchange of information legal persons, Luxembourgish tax residents and tax residents in a third State (outside the European Union).