There are numerous types of activities that can be carried out through an investment fund in Luxembourg, but the country is well-known for four major investment activities. The investment opportunities that can arise on the local market are available for both European investors, as well as businessmen located outside the European Union’s states. Our financial representatives can offer in-depth assistance on the main procedures related to the registration of an investment fund. 

 

 

Foreign investors may set up a wide range of investments funds that can satisfy the needs of various types of investments, which can refer to the minimum share capital, the investment strategies that can be enforced through the respective vehicles or to the tax regulations or tax deductions available under the local legislation. 

 

Foreign businessmen may set up a SICAR in Luxembourg or a specialized investment fund, as well as other types of vehicles. Regardless of the fund chosen for incorporation, it is important to know that Luxembourg concentrates its financial activities on the following:

 

• investment funds;

• capital market;

• banking; 

• insurance. 

 

The insurance market in Luxembourg is mainly represented by life insurance and reinsurance activities. An important aspect of the insurance policies carried out in the EU area refers to the fact that any citizen of a EU member state may establish a life contract with a company operating in any EU country. 

 

Entrepreneurs interested in private equity in Luxembourg should also take into consideration that a particularity of the investment funds set up here refers to the fact that such vehicles usually invest in European equities and corporate debt. At the level of 2016, the Luxembourg funds invested in the Euro zone a total of EUR 1,422 billion, held in debt and equities. Our team of financial agents can provide more details on the main advantages of investing in equities or debt. 

 

 

A foreign fund can be distributed on the local market, a procedure which can be completed following different regulations that can depend on the fund’s country of origin (European funds can be distributed following a simpler procedure than in the case of other foreign vehicles). 

 

At the level of 2015, Luxembourg represented the top economy for the distribution of European funds amongst the EU member states. This accounted for approximately 42,000 registrations. 

 

Investors are invited to contact our team of financial consultants for more details on the main types of financial activities that can be set up here.