The deal - the 10th Double Taxation Agreement (DTA) the island has signed since 2009 - is part of the Manx government's continued action to help improve economic communications and co-operation with other countries.
Isle of Man Treasury Minister, Eddie Teare and Luxembourg's Charge d'Affaires, Beatrice Kirsh signed the treaty in London on the 18th April.
The Isle of Man has now signed 10 DTAs as well as 27 tax information exchange agreements since 2002.
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