Luxembourg: a strategic financial hub

A strong, secure and international ecosystem that attracts businesses, investors and institutions from around the world.

A unique financial centre in Europe

A globally recognised economic pillar

Luxembourg is now the world’s second-largest investment fund centre, a major international banking hub and a strategic gateway for companies expanding in Europe.

Thanks to its institutional stability, predictable tax environment, financial innovation and a reliable regulatory framework, it attracts thousands of investors and companies every year.

Luxembourg financial hub

Key strengths of the financial centre

Why Luxembourg attracts investors

Political & legal stability

A reliable, transparent regulatory environment recognised internationally.

An international banking hub

Over 120 banks from 25 countries serving wealth management and multinational clients.

Leader in investment funds

Second worldwide after the US, with a strong framework for both traditional and alternative funds.

International openness

A multilingual country and strategic crossroads at the heart of Europe.

Innovation & digitalisation

A dynamic fintech ecosystem and strong public support for innovation.

Competitive tax environment

A stable, clear and attractive tax framework for international companies.

Key sectors

A diversified economy focused on the future

While finance remains the main driver, Luxembourg has steadily built a diversified economy to strengthen its resilience. Public authorities actively support the emergence of new high value-added sectors: technology, logistics, space, healthcare, advanced industry and more.

This diversification allows companies to operate in an ecosystem where international banks, asset managers, fintechs and digital players coexist alongside industrial groups and innovative businesses.

For entrepreneurs and investors, this means access to strong local partners, an international network and modern infrastructure—while benefiting from a business-friendly country on a human scale.

Investment funds

Europe’s leading fund centre and second worldwide, Luxembourg hosts asset managers of all sizes with vehicles suited to traditional and alternative strategies.

Private banking & multinationals

Expertise in wealth management, international financing, cash management and tailored services for global groups and family offices.

Fintech & technology

A state-backed digital ecosystem with specialists in blockchain, AI, payments, cybersecurity and data infrastructures.

Space sector & innovation

Luxembourg is a pioneer in the commercial use of space, with a dedicated legal framework and initiatives supporting New Space companies.

A stable environment

A strong and secure economic framework

Luxembourg’s model is built on long-standing political stability, prudent fiscal management and ongoing dialogue between the State, financial institutions and businesses. This long-term approach strengthens trust and reduces risks associated with sudden regulatory changes.

The CSSF (Commission de Surveillance du Secteur Financier) provides rigorous supervision of the financial sector while maintaining a constructive dialogue with market participants. Luxembourg is recognised for combining regulatory standards with operational pragmatism.

The country fully aligns with European and international standards on AML, transparency and governance. For investors and companies, this means operating in an environment where rules are clear, stable and consistently applied.

For company formation, investment structuring or international expansion, Luxembourg stands as a reliable and sustainable partner at the heart of the European market.

What this means for your business

  • Long-term visibility on tax and regulatory matters.
  • Accessible and responsive supervisory authorities.
  • A safe environment recognised by international investors.
  • A strong image of compliance and credibility with partners.
  • An ideal base for cross-border structuring and operations.

Key figures

A strong and reputable financial centre

2nd

largest investment fund centre worldwide

120+

international banks

4,500+

funds domiciled

50%+

of Europe’s cross-border wealth management