Key Aspects to Consider When Investing in Luxembourg

Written by: Bridgewest

Key-Aspects-to-Consider-When-Investing-in-Luxembourg.jpgLuxembourg represents a great location for opening an investment fund, due to its long history in this field. Investments in the financial sector in Luxembourg represent a top economic field for this country, which provides a solid legal framework and numerous advantages offered to foreign businessmen. The financial and insurance activities represent 28.4% of the country’s Gross Domestic Product (GDP) and our team of financial representatives can offer an in-depth presentation on the most relevant aspects investors should take into consideration when investing in this country. 

 

Luxembourg – main economic aspects 

 
Although Luxembourg is a small country, it provides one of most solid economic growths in Europe. The financial sector is the most representative economic sector, which had a positive impact on the overall society. In this sense, we mention that the GDP per capita in Luxembourg is rated as one of the highest at a global level. In 2016, the income per capita in Luxembourg was estimated at $ 105,829.
 

Diversity of investment funds in Luxembourg   

 
Foreign investors who are interested in opening a Luxembourg fund should know that the legal framework offers numerous options, addressed to all categories of businessmen. 
 
The legislation regulating the investment fund market in Luxembourg is divided into three main categories, as follows: 
 
Part I Fund Law; 
Part II Fund Law;
SIF Law. 
 
The Part I Fund Law refers to a category of funds that have to be registered as open-ended. At the same time, the administration of such funds has to be registered in Luxembourg
 
Our team of financial experts can advise on the main characteristics of such funds, which can be registered as one of the following: 
 
SICAV
SICAR;
FCP
 

Why invest in Luxembourg? 

 
Foreign investors are advised to choose Luxembourg as a location for their investment fund as the local authorities provide several tax exemptions applicable to investment vehicles
 
For example, investors are exempted from paying the income tax and the capital gain tax. At the same time, the country was the first European state which implemented in its national legislation the UCITS directive, available for retail investment funds
 
More details on the subject can be offered by our team of financial consultants. Please contact our experts for financial advice. 
 

Comments

  • John 2017-02-16

    There are few countries in Europe in which businessmen should invest in the financial sector, and Luxembourg is for sure one of these!

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