Luxembourg is home to one of the most stable economies in the EU and, despite its small size, ranks as the second largest fund domicile in the world. Its transport infrastructure is well developed, with direct access to the rest of Europe and North Sea ports, and its technology infrastructure is renowned. Luxembourg is also the home of the European Court of Justice, making it an important EU centre.
Luxembourg is the second-largest fund domicile in the world and Luxembourg-based investment funds have a dominant share in Europe and are the vehicle of choice in many parts of Asia, Latin America and the Middle East. Luxembourg’s funds also benefit from the European Passport, meaning that funds (and their managers) comply with the EU UCITS Directive, the AIFM Directive (known as AIFMD) and can be marketed to investors in the European Economic Area.
The government of Luxembourg has been working to make the country even more attractive for FDI, offering fiscal benefits for equipment and construction projects, focused on key innovative industries like: logistics, ICT, health technologies (including biotech and biomedical research), clean energy, space technologies, and financial services tech.
It’s a massive financial hub, a first choice for many sectors and is definitely one of the most favourable domiciles in Europe, but local knowledge is essential to navigate the lengthy processes and intensive regulations.