Luxembourg is a founding member of the European Union and is geographically located in the heart of Western Europe, neighbouring France, Germany and Belgium. It therefore serves as the ideal entry point to a market of 500 million consumers and an area in which goods, people and capital circulate freely.

Luxembourg has specific highlights which make it a good location for doing business: investment friendly on-shore location, important private banking centre, modern legal and regulatory framework and political stability, the largest Investment Fund Centre in the EU, and a multicultural and multilingual workforce.

Luxembourg does not restrict the flow of European or foreign currencies into or out of the country but there are some reporting requirements to prevent money laundering.

Luxembourg is one of the most prosperous and open economies in the OECD. Thanks to overall sound policies and institutions, the financial sector remains competitive and has made inroads into new areas, such as fintech and green finance. The strong fiscal position is well illustrated by a long-standing AAA rating and the large accumulation of government financial assets. Luxembourg has a free-trade policy – restrictions are not imposed on foreign ownership of business.

The country is home to 128 banks as of March 2021, which are particularly specialized in private banking, life insurance and investment fund administration. The banking sector has been able to adapt and diversify to meet growing demand for tailored investment management and financial optimization services.

Luxembourg is also an attractive base for life insurance and reinsurance companies, including leadership in the area of captives, as well as for private equity and venture capital funds.

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