Why Luxembourg?

Strong Regulatory Framework

Luxembourg has a well-established and robust regulatory framework for investment funds. The country offers a wide range of fund structures, including Undertakings for Collective Investment in Transferable Securities (UCITS) and Alternative Investment Funds (AIFs), which are governed by comprehensive laws and regulations. This regulatory environment provides investor protection and instills confidence in the market.

European Union (EU) Passport

Luxembourg is a member of the European Union and benefits from the EU’s passporting regime. This allows investment funds domiciled in Luxembourg to be marketed and sold across the EU without the need for separate registrations in each member state. It provides a streamlined process for fund distribution within the EU’s single market.

Political and Economic Stability

 Luxembourg is known for its political stability and favorable economic environment. It has a AAA credit rating, indicating a low level of default risk. The country has a long history of financial stability, which attracts investors seeking a secure and reliable investment destination.

Tax Efficiency

Luxembourg offers attractive tax benefits for investment funds. It has a favorable tax regime, including double taxation treaties with numerous countries, which helps to minimize tax burdens for fund investors and facilitates cross-border investments. Luxembourg also provides tax exemptions on certain types of income, such as capital gains and dividends, for qualifying investment funds.

Expertise and Infrastructure

Luxembourg has developed a strong financial services industry with a deep pool of experienced professionals. The country is home to numerous asset management companies, fund administrators, custodians, and other service providers, offering a comprehensive ecosystem to support investment fund operations. The presence of skilled professionals and a well-developed infrastructure contributes to efficient fund management and administration.

Global Recognition

Luxembourg is globally recognized as a leading domicile for investment funds. It has a strong reputation in the asset management industry and is a preferred choice for both institutional and retail investors. The Luxembourg fund industry has a long track record of successful fund launches and a wide range of investment strategies available across various asset classes.

Investor Protection

 Luxembourg places a strong emphasis on investor protection. The regulatory framework includes stringent investor safeguards and disclosure requirements. Investors benefit from transparency, independent oversight, and a well-regulated environment, which can enhance investor confidence and trust in investment funds domiciled in Luxembourg.

More than EUR 4,300 billion in center in Europe

Unique concentration of investment fund experts

Leads the way in investor protection

Highly experienced and responsive regulator

Endowed with an international and multilingual workforce

Number one investment fund in the world after the US

Legal and regulatory framework for investment funds is state of the art

Stable political and social environment and a strong economy

  • More than EUR 4,300 billion in center in Europe

  • Unique concentration of investment fund experts

  • Leads the way in investor protection

  • Highly experienced and responsive regulator

  • Stable political and social environment and a strong economy

  • Legal and regulatory framework for investment funds is state of the art

  • Number one investment fund in the world after the US

  • Endowed with an international and multilingual workforce