General Overview.  Luxembourg is one of the largest offshore financial centers of the world. Financial industry employs a significant part of the population and brings more than one third of the country’s GDP. This country has developed favourable business management regulations and is often chosen by entrepreneurs and investors who wish to conduct an offshore business activity in the EU. The establishment and successful development of Luxembourg Stock Exchange was crucial for ensuring high level financial services.
 
Banking Sector. International banks provide modern banking products and services to international customers from Luxembourg. Private banking is particularly developed in the jurisdiction. Secrecy laws have statutory force.

Holding Companies. Convenient taxation regime in combination with its geographical location, EU membership and extensive double taxation treaties network make Luxembourg one of the primary choices for an offshore holding company formation there. It may take different legal forms, which must be analyzed and determined on the individual basis.

Investment Funds.  In 2004 the local authorities decided to allow offshore hedge funds to be listed on Luxembourg Stock Exchange, which significantly favored the development of the hedge fund industry. Luxembourg became a good alternative for listing investment funds to Ireland, which was generally chosen for listing offshore funds till 2004. Different types of investment funds may be registered and managed from Luxembourg.

Shipping Management. Regardless the fact that Luxembourg is a landlocked country, the jurisdiction has introduced a number of incentives tax-wise for companies and individuals involved in shipping management business.