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Banking and Finance
The Grand-Duchy of Luxembourg is a constitutional monarchy whose independence dates back to 1839. A sovereign country with a stable political background, Luxembourg benefits from a modern, dynamic and open economy with healthy public finances. Taking advantage of its size, Luxembourg has consistently demonstrated its ability to react quickly and flexibly to a rapidly changing international environment. The emergence of a financial hub in Luxembourg has been pushed essentially by the existence of a flexible legal environment and favourable fiscal legislation, which have been rendered attractive by several external circumstances (for instance the adoption of fiscal legislations in third countries). The framework is essentially characterized by the bank secret, the absence of declaration of sources for savings income (until 2004), a flexible regime for banking provisions and an active fight against money laundering. Other factors have encouraged the expansion: the fast transposition of EU directives, the efficiency of prudential monitoring, the multilingual and well qualified workforce, the geographical location within the heart of Europe and the competitive operational costs. 20 years of remarkable growth and visionary strategy has enabled the Grand-Duchy of Luxembourg to build an outstanding reputation as a world-class centre for the investment fund industry. Luxembourg is a member of many international economic bodies including the World Bank, the International Monetary Fund, the Organisation for Economic Cooperation and Development as well as the European Investment Bank. Luxembourg is also a founding member of GAFI (Groupe d'Action Financi?re contre le blanchiment d'argent) - FATF (Financial Action Task Force on money laundering). Luxembourg's unique track record is confirmed by a number of international surveys :
- Ranked no 6 for its economic performance in the World Competitiveness Yearbook and no.12 on the World Competitiveness Scoreboard (IMD, Lausanne)
- Ranked the thirteenth freest economy in the world and number four in Europe, by the Heritage Foundation/Wall Street Journal's annual Index of Economic Freedom 2012
- Ranked among the twenty top host economies for 2009 and 2010 for global in-and outflows in the UNCTAD, World Investment Report of 2011 (page 29 and 34).
The modern and legal tax environment has led to the rising of many financial institutions providing services on a day-to-day basis for international customers. One may choose among a variety of financial businesses, reaching from Holdings and Soparfis (Sociétés de participations financières) over Banks and OPCs (Organismes de placement collectif) to insurance and reinsurance companies. Investors in Luxembourg can also benefit from the Luxembourg stock exchange, which opened in 1928. Thus, Luxembourg really provides a strong social and economic environment for a prospering financial business ground.
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