The Luxembourg market offers an excellent market if you want to set-up your business abroad. Its strong performance even during economic crises is founded on its brilliant and highly strategic commercial policy. While it slowly moved away from its dependence on the steel industry, it successfully made a name for its innovative blend of financial services, value-added manufacturing, e-commerce, communications, and logistics solutions. Its strength lies in its financial sector and legal framework. With more than 130 banks, 88 insurance companies, and 216 reinsurers, it’s no wonder it has become the second-best destination for investment fund center in the world.
Excellent Quality of Life
Luxembourg is inarguably one of the wealthiest nations in Europe, per capita at $118,359, as evidenced by its citizens enjoying a high standard of living. It ranks first in terms of income and wealth, above-average social connections, jobs and earnings, work-life balance, persona security, housing, civic engagement, and subjective well-being to name a few. According to available data, the average household net-adjusted disposable income per capita is at $39,264, a figure that is significantly higher than the OECD average of $33,604 a year.
When it comes to employment opportunities, about 65% of citizens between the ages of 15 and 64 have jobs. In terms of quality of life, life expectancy in Luxembourg is 83 years, three years longer than the OECD average of 80 years. Air quality measured by atmospheric pollutants is at 12.2 micrograms per cubic meter, lower than the OECD average at 13.9 micrograms per cubic meter. Almost 85% of its citizens are highly satisfied with its water quality set at 84%, three notches higher than the OECD average. It has one of the best healthcare systems in the world and is known as the fourth safest country for expatriates. Finally, there is a strong sense of community and civic participation in Luxembourg, as evidenced by the high percentage of trust of its residents to its government.
Excellent Stability and Sterling Reputation
The neutral nature of Luxembourg’s political landscape allows foreign investors to tap into its promising markets. Amidst the COVID-19 pandemic, the Luxembourg fund sector has proven once again its resilience due to its ability to switch to remote working models almost instantaneously.
Cross-border commuters from neighbouring countries are allowed to work from home without having to deal with social security or personal income tax repercussions. It maintains efficient business operations despite pandemic constraints, thanks to the efficient communication channels between the Luxembourg government, the tax authorities, and the Financial Sector Supervisory Body (CSSF). Due to its stability and good governance, the alternative sector remains an attractive place for investors, especially with a promising forecast that prior levels of activity will resume sooner rather than later.
Its openness to foreign investors makes it the top destination for businessmen. The country is known for its easy and fast business creation process and business-centered regulations. It has a well-established fund industry sector that has attracted major cross border investments channels and renowned fund and asset managers in Europe. It’s sterling track record of stability, robust regulatory framework, and highly flexible law regime are just some of the strengths of Luxembourg. The country has superbly catered to the growing demands of the funds industry.
The highly skilled and multilingual workforce has contributed to the increase of local Alternative Investment Fund Manager and third-party service providers. Luxembourg’s strong business sector has attracted neighbouring countries to utilize its real estate funds and other investment vehicles. Many private wealth and pension funds have successfully established investment channels, holding companies, and other feeder funds in the Grand Duchy. Even high-net-worth individuals are setting up their businesses in Luxembourg due the reasons mentioned earlier.
Efficient Investment Fund Structure Types
Due to its well-known tradition for innovation in the fund sector, investors can choose from a broad range of investment vehicles featuring different legal forms, fund requirements, tax qualifications, and regulatory frameworks. Apart from its traditional investment vehicles, recent developments included Special Limited Partnership, Reserved Alternative Investment Fund, real estate investments, and infrastructure investments.
The creation and implementation of innovative solutions under the Luxembourg fund industry guarantee that Luxembourg maintains its reputation for reliable fund management.
Damalion seeks to help foreign investors establish subsidiaries, branch offices, and liaison offices in Luxembourg. Clients interesting in structuring their international investments, wealth management and asset protection may contact Damalion experts to register a company in Luxembourg.