Luxembourg: the cross-border center of expertise for your private wealth

The Grand Duchy of Luxembourg is very close to the center of gravity of the European Union and very far from all the destabilizing factors that could jeopardize your private wealth. The second smallest country by its size of the Union is certainly the best known for its secretive financial practices. Its centenary tight relations with other major high-level financial strongholds makes it the perfect place to secure one’s wealth. Brexit and other economical jolts will only reinforce its well secured position.

An island of stability right in the middle of Europe

The globalized economy is weakened by more and more complex political and economic environments and by negative events. There are less and less secure enough countries where private wealth can be tightly managed and productive as any usual customer is entitled to ask. Sooner or later China will replace the USA as the predominant economy. But there is no positive evidence that both superpowers will be stable or sterling enough for the next decades so You can pour your private wealth into their economies. Structural reinforcement of private wealth, as well as private wealth based upon investment policies, strongly benefit from stability.

Private wealth, whether it is built on securities or real estate, is often tied to familial economy. It deeply needs political and economic stability so it can be the source of financial florescence. Luxembourg is definitely such a place where the whole financial and even the social system is based upon steadiness and constancy. And so goes private wealth management operational costs. Even when subordinated to the new strict financial transparency rules of Brussels they do remain at an exceptional low level. Be sure that the attractivity of the country in the near future will help to maintain this trend.

Brexit and the new European market will reinforce its position

Luxembourg is no longer a fiscal paradise as it used to be until the years 2000. Banking secrecy has been abrogated and the Grand Duchy has to operate in full financial transparency as all other Union members have to. But who wants to entrust the few last fiscal paradises to manage private wealth when they will soon or later close for good ? Nobody wants to appear in “Papers” with unfavorably known shady customers. Moreover Luxembourg can ensure a very profitable management of private wealth while still strictly observing international financial regulations. Most of this “tour de force” is due to the country’s central position, geographical but also financial. It has been the bank of the very rich European people and royal families for decades and even centuries. The country has even created a financial vehicle designed for the management of individuals’ private wealth. The “Société de gestion de patrimoine familial” (“SPF”) has been established by the law of the 11th of May 2007. It lets private wealth management services include the Family Office, a regulated activity in Luxembourg, in their private wealth portfolio of activities.

Recent economic crisis like the Brexit will only reinforce the dominant position of Luxembourg on the private wealth management market. Its Assets Under Management national financial portfolio is increasing at a fast pace. It is even driving the whole national investment banking system to the high position it always had before the adoption of the new financial regulations. All the signs are here to encourage all types of investments. Most of the assets management leaders coming from London are now getting established in Luxembourg. You should be too.