Entrepreneurs interested in the business environment available in Luxembourg should know that this market is one of the most solid in the European Union (EU), as it provides a rigorous taxation and legal system applicable to funds. Luxembourg has many attractive policies addressed to both local and foreign investors who are interested to invest their financial assets in various types of funds. Our team of experts can offer assistance on any matter related to fund domiciliation in Luxembourg.
Luxembourg, the leading center in the Eurozone region
The Luxembourg fund legislation helped the state impose itself as one of the most important financial centers in the EU. According to the Global Financial Centers Index (GFCI), Luxembourg has the following results:
• the first leading financial center in the Eurozone;
• the second market in the European Union;
• the third economy in terms of financial competitiveness in the EU.
In comparison with the last results of the GFCI, Luxembourg improved its position by 5 ranks. Foreign investors who want to establish a fund in Luxembourg can rely on the business opportunities offered by the local market, as the state is considered the most relevant financial center, which has all the premises of becoming an even more important economy in this sense; our team of financial agents can provide more details on this matter.
Investment funds in Luxembourg
The local legislation prescribes two main types of undertakings for collective investments, as follows:
• alternative investment funds.
These funds can be further established under the following structures:
• the common investment fund does not have a legal entity and it has to be managed by a management company;
• the investment company with variable capital presumes a capital that is not fixed, set out in accordance to the subscriptions invested by the partners;
• the investment company with fixed capital – it can be self-managed or it can be conducted by a management company.
If you need further information on the investment market available in Luxembourg, please contact our team of financial representatives for assistance.