Luxembourg
Europe's leading fund domicile and a specialist centre for cross-border wealth structuring. Luxembourg offers sophisticated vehicles for family offices seeking to pool capital, invest across borders, and plan for succession across multiple jurisdictions.
Family Offices
300+
Avg AUM
€600M
Regulatory Body
CSSF
Tax Environment
Participation exemption; SPF regime; extensive treaty network
Introduction
Luxembourg has established itself as Europe's premier jurisdiction for cross-border fund structuring and wealth management, hosting over €5.5 trillion in fund assets. For family offices, the Grand Duchy offers a unique combination of sophisticated legal vehicles, extensive double taxation treaty networks, and deep expertise in multi-jurisdictional wealth planning.
The Société de Gestion de Patrimoine Familial (SPF) regime provides a purpose-built vehicle for family wealth management, while regulated and unregulated fund structures (RAIF, SIF, SICAR) offer flexible options for pooling capital and co-investing. Luxembourg's EU membership ensures fund vehicles can be marketed seamlessly across Europe.
Despite its small size, Luxembourg punches well above its weight in financial services, consistently ranking among the world's top financial centres. The country's political stability, multilingual workforce, and pro-business regulatory environment make it an ideal base for families with assets and interests across multiple European jurisdictions.
Key Numbers
Evaluation
Luxembourg's tax system is designed to attract international capital while maintaining compliance with EU and OECD standards. The corporate tax rate (including solidarity surcharge and municipal business tax) is approximately 24.94% in Luxembourg City, though the participation exemption regime significantly reduces the effective tax burden for holding and investment structures.
The participation exemption provides full exemption from tax on qualifying dividends and capital gains from subsidiary holdings, making Luxembourg an efficient intermediate holding jurisdiction. The SPF regime exempts qualifying family wealth management vehicles from income tax and net wealth tax on financial assets.
Luxembourg's extensive network of over 80 double taxation treaties, combined with EU Directive benefits, provides efficient conduits for international investment flows. The country has implemented all BEPS recommendations and maintains full compliance with EU tax transparency requirements.
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Key Highlights
Fund structuring expertise
World-leading jurisdiction for UCITS and alternative fund vehicles, with deep expertise in RAIF, SIF, and SICAR structures.
SPF regime
The Société de Gestion de Patrimoine Familial (SPF) provides a dedicated vehicle for family wealth management with favorable tax treatment.
Treaty network
Extensive double taxation treaty network makes Luxembourg ideal for families with assets across multiple jurisdictions.
EU passport
Fund vehicles domiciled in Luxembourg can be marketed across the EU, providing seamless cross-border distribution.
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