Why Open an Investment Fund in Luxembourg?Updated on Friday 10th June 2016
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Foreign investors interested in a reliable market where they could keep their financial assets are advised to open an investment fund in Luxembourg, as the local business environment is ideal for such activities. One of the main advantages for starting a fund here is that Luxembourg is ranked as the first economy in Europe in this field, being the most important investment fund center. Businessmen who want to find out more about the local investment market can receive an in-depth presentation from our experts in Luxembourg.
Reasons to invest in Luxembourg
Foreign investors are advised to open an investment fund here because Luxembourg is the leading domicile for investment funds starting with the 1980s. Luxembourg is also one of the most stable economies in the world, developed as a financial and banking center.
An important aspect is that the state is a founding member of the European Union and a member of most important international organizations. Luxembourg’s economy was awarded the ranking “AAA”, which is given by the credit rating agencies to countries with a very stable economy; our financial consultants can provide you with further details on the local economy.
Exceptional results for fund investments in Luxembourg
At the end of 2014, the total value of the fund center in Luxembourg reached a value of EUR 3 trillion. The financial result was mostly an effect of the net sales, which accounted for more than half of the total fund value.
Luxembourg has been an attractive market, which offered support to foreign investors, by providing a set of incentives and a solid legal system. Luxembourg was the first state which implemented the UCITS (Undertakings for Collective Investments in Transferable Securities) Directive, with the purpose of creating a single market for retail investment funds; our legal experts in Luxembourg can provide you with more details on this topic.
Foreign investors interested in investing on this market should also know that Luxembourg offers an attractive taxation system, in the sense that the following taxes are not applicable for an investment fund:
- income tax;
- capital gain tax;
- withholding tax;
- wealth tax.
If you need further information on the investments funds in Luxembourg, please contact our financial specialists, who can provide you with consultations on the necessary steps for the incorporation of a fund.