The attraction of Luxembourg
The Luxembourg financial centre is attracting increasing numbers of investors and entrepreneurs. We investigate the reasons for this growth.
Can you explain the attraction of Luxembourg for people wishing to live or invest there?
One of Luxembourg’s main advantages is its geographical location. It occupies a central place in Europe, within easy reach of many capital cities. Paris and London are just one hour away by plane. It is also the perfect example of integration. More than 40% of its population is foreign, and in terms of quality of life the country still ranks among the best in its class. When it comes to investments, the Grand Duchy attracts demanding international clients as well as entrepreneurs. Many international groups have recognised all the advantages the Grand Duchy has to offer and installed their head offices there, including Arcelor Mittal, Goodyear, Ferrero, RTL Group and more. The development of the financial market is having a beneficial effect on the economy. Luxembourg is the second-ranked country in terms of investment fund management and the leading country in the euro zone for private banking service activities. To a great extent, Luxembourg has established its reputation by satisfying an international clientele seeking tailored and innovative financial solutions.
What are the latest developments in the area of wealth engineering?
The financial market has set up a strategy allowing appropriate solutions to be offered, whatever the client’s legal, fiscal and financial needs. Examples include the structuring of a family company before its sale or flotation on the stock exchange, inheritance planning, tax optimisation or even an analysis of the best site location. It goes without saying that all solutions are transparent and comply with international law. However, the financial market is not resting on its laurels. The Minister of Finance, Luc Frieden, has made the development of the financial market one of his priorities. He has recently announced a Luxembourg trust project and a private foundation concept.
How would you advise a wealthy individual who is trying to decide on the best country in which to invest his or her assets?
A wealthy individual would be best advised not to choose a specific country because these days geographic diversification is essential. Investing money in Switzerland does not stop you taking advantage of advice in Luxembourg or elsewhere as well. The Grand Duchy has some clear assets: its political stability and a strict regulator concerned about protecting the investor. In addition, we have a financial market with an international outlook that speaks the customer’s language with a complete range of products, services and advice.