Luxembourg has long been a trusted jurisdiction for wealth structuring, offering a unique combination of legal flexibility, tax efficiency, and regulatory stability. Whether for family offices, private investors, or high-net-worth individuals, Luxembourg provides a sophisticated framework for preserving and growing wealth across generations.
Investors continue to choose Luxembourg for the following ten compelling reasons: Luxembourg offers a range of flexible legal structures tailored to different investor needs. Options include the Soparfi (investment holding company), SPF (family wealth management company), or private foundations.
For investment funds, Luxembourg provides SICAVs, RAIFs, and SIFs catering to diverse asset classes. For alternative investments, partnerships such as SCS or SCSp provide highly flexible structures, widely used in private equity and venture capital.
The country’s tax landscape make it a highly attractive jurisdiction for wealth structuring. The combination of the appropriate legal structuring with the efficient tax treatment (e.g. tax exemption of certain vehicles or of certain income/gains and an extensive double tax treaty network) enables a tailored solution for each type of investor and investment.
Wealth preservation and succession planning are key considerations for investors. Luxembourg offers structured governance solutions through partnerships and private foundations, ensuring long-term asset protection and smooth intergenerational wealth transfers.
Luxembourg vehicles can structure investments across all asset classes and constitute popular tools for co-investments and club deals. As an AAA-rated EU member state, Luxembourg provides a transparent and predictable legal environment, ensuring long-term security for wealth-holding structures.
Confidentiality remains a priority while maintaining compliance with international standards. Luxembourg strikes a balance between investor privacy and transparency, offering robust legal mechanisms that protect wealth holders while adhering to global regulatory requirements.
Luxembourg is a hub for private banking and asset management, hosting top-tier private banks and family office services. Investors benefit from best-in-class investment expertise.
Luxembourg provides seamless market access for cross-border investment structuring. Its regulatory framework allows for passporting benefits, facilitating international investment strategies while ensuring compliance with EU financial regulations.
Sustainable investment options are increasingly important, and Luxembourg is a leader in ESG-compliant structures, including green bonds and impact funds.
Efficient structuring and administration are ensured through Luxembourg well-established financial ecosystem. A strong network of legal, tax, and fiduciary professionals ensures cost-effective wealth management.
This article was published in the 5th edition of Forbes Luxembourg magazine.
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