The world is entering a new era of uncertainty, shaped by geopolitical tensions, evolving economic policies, technological disruption, and shifting environmental policies. In this volatile context, Luxembourg’s financial centre stands out as a stable, reliable platform for global operations, safeguarding wealth for future generations, and advocating for balanced global financial regulations.
Luxembourg’s financial centre provides the stability essential for companies and investors to navigate an increasingly complex global landscape and seize new opportunities. As a trusted hub for financial institutions and insurers, financial intermediaries, as well as the financing operations of multinational corporations, Luxembourg offers a secure environment to manage cross-border operations with confidence. The country’s leadership in wealth management and life insurance caters specifically to high-net-worth individuals and their families, delivering tailored solutions for asset protection and long-term financial security. At the same time, Luxembourg’s advocacy for balanced and business-friendly regulatory frameworks reinforces its role as a reliable partner for global and regional financial institutions, ensuring they can thrive within the EU and beyond. This combination of stability, expertise, and proactive engagement makes Luxembourg indispensable to the global financial ecosystem.
A Stable Centre for Global Operations
Our Ambitions
Underscore Luxembourg’s status as a stable base of operations for global financial institutions and a reliable investment hub in a volatile world
Expand and attract additional corporate banking activities to Luxembourg and strengthen Luxembourg’s role as corporate banking centre and European hub for treasury services
Consolidate Luxembourg’s role as the European jurisdiction of choice for captive reinsurance and non-life insurance, allowing multinational firms to manage current and future global risks, such as cybersecurity and the impacts of climate change.
Continue to strengthen Luxembourg’s role in international capital markets, providing a comprehensive range of services to international issuers and investors, from issuance to listing and post-trade services.
Emphasise Luxembourg’s position as a leading centre for international securitisation, building on the flexible and innovative legal framework and the structuring expertise of the local ecosystem.
In an increasingly volatile environment, Luxembourg has established itself as a stable and strategic hub for global operations. By building a reliable foundation based on fiscal prudence, strong governance, and regulatory clarity, Luxembourg offers financial institutions and their clients a predictable and resilient environment for cross-border operations.
Luxembourg’s AAA sovereign credit rating, supported by a debt-to-GDP ratio of under 30%, provides the fiscal headroom necessary for long-term policy certainty. This stability is further reinforced by a balanced political landscape, with minimal influence from extreme parties, and consistently above-average GDP growth compared to the EU, underscoring the durability of Luxembourg’s model. Socially, Luxembourg’s cosmopolitan society, where nearly 50% of residents are foreign nationals, has integrated smoothly, experiencing very low levels of unrest and only two major strikes taking place since the WWII, highlighting the country’s ability to maintain social stability alongside rapid growth.
Luxembourg's debt-to-GDP ratio:
Luxembourg’s regulatory environment plays a crucial role in its appeal as a financial centre. The Commission de Surveillance du Secteur Financier (CSSF) and the Commissariat aux Assurances (CAA) bring many decades of expertise in cross-border financial services, fostering strong communication and collaboration with regulatory bodies across Europe. The Banque Centrale du Luxembourg (BCL), as the country’s macroprudential authority, provides oversight and stability within the financial system, ensuring that systemic risks are carefully managed. These institutions maintain a forward-looking regulatory approach, including regular industry consultations and streamlined authorisation processes, that create an environment where businesses can adapt quickly and confidently. Reflecting the international nature of the financial centre, Luxembourg’s regulators communicate with regulated firms and accept license applications in English. They have done so for decades. This regulatory clarity and proactive oversight make Luxembourg’s financial centre highly attractive to firms seeking operational stability and forward-looking guidance in a truly international environment.
Luxembourg’s reputation for strong governance, innovation, and regulatory foresight has created a centre renowned for its stability and operational security, attracting financial services firms and multinational corporations alike. This commitment to stability, combined with strategic regulatory reforms, has enabled Luxembourg to establish and maintain itself as a leading centre for corporate banking, non-bank financial intermediation, and insurance.
Luxembourg serves as a strategic hub for multinational treasury operations, cash management, and risk management. With a multilingual workforce, flexible legal structures catering to a broad range of financing and investment needs, and a legal and regulatory environment that prioritises cross-border finance, Luxembourg offers firms a dependable base from which to manage complex financial operations. Many corporations rely on Luxembourg for comprehensive liquidity management and corporate advisory services, and the country’s AAA credit rating provides a further advantage in securing favourable funding. This top-tier rating instils confidence among international stakeholders, ensuring that corporations have access to stable liquidity and robust funding options to weather global market fluctuations.
Luxembourg is also a leader in non-life and captive insurance, providing multinational corporations with effective risk management solutions that address a range of challenges, from cybersecurity threats to environmental liabilities and supply chain disruptions. Captive insurance companies are especially popular in Luxembourg, which holds a 50% market share of all EU-based captive insurers. The country’s Solvency II-compliant framework reinforces this position by ensuring high capital standards and transparency, making Luxembourg a preferred location for captives. The credibility of Luxembourg’s insurance regulations means that businesses can rely on stable and transparent insurance solutions to cover high-cost risks that are often difficult to insure in traditional markets.
Luxembourg's market share of all EU-based captive insurers:
"The securitisation framework complements Luxembourg’s corporate banking capabilities, offering innovative solutions for multinational corporations and financial institutions looking to optimise their capital structures and diversify funding sources."
In recent years, several global banking leaders, notably from the US and the UK, have launched new corporate banking activities in Luxembourg. These institutions follow their clients, notably non-bank financial intermediaries and multinationals who set up their treasury centres, to Luxembourg. Besides a broad range of banking services, corporate banks in Luxembourg are also offering fund financing and related services to a fast-growing alternative fund industry in Luxembourg.
Corporate banking is today central to Luxembourg’s role as European banking hub, supporting multinational corporations and non-bank financial institutions through cross-border lending, fund financing, treasury services, cash management and syndicated loans amongst others. Luxembourg’s corporate banking sector manages a large number of corporate loans, which are critical for sustaining international business operations. In addition, Luxembourg’s role in syndicated lending enables it to act as a lead arranger or participant in financing large-scale projects, from infrastructure investments to mergers and acquisitions. Moreover, such investment and M&A activity can rely on Luxembourg’s broad and adaptable range of investment vehicles.
Building on this expertise, Luxembourg’s updated securitisation framework further enhances its position as a global leader in structured finance. The 2022 revisions to the Luxembourg Securitisation Law have expanded the scope and flexibility of securitisation vehicles, enabling a broader range of assets to be securitised, including both tangible and intangible assets. These changes make Luxembourg an even more attractive jurisdiction for creating efficient, transparent financing structures. By introducing greater legal certainty and allowing the active management of securitised assets under certain conditions, the updated framework provides investors and issuers with robust tools for managing risk and accessing liquidity. The securitisation framework complements Luxembourg’s corporate banking capabilities, offering innovative solutions for multinational corporations and financial institutions looking to optimise their capital structures and diversify funding sources, which is also a key priority under a future Savings and Investment Union in Europe.
Luxembourg’s capital markets environment is a cornerstone of its stability and global appeal, offering a robust platform for financing, trading, and post-trade services. The Luxembourg Stock Exchange (LuxSE) plays a pivotal role as the world’s leading venue for listing international debt securities, hosting over 40,000 listed securities from issuers across 100 countries. This dominance in international debt markets provides multinational corporations and financial institutions with a trusted, efficient platform for raising capital across borders. By enabling access to diverse global investors, the LuxSE supports firms in achieving their funding objectives.
Clearstream's Assets under Custody:
Complementing the LuxSE’s role, Clearstream is a key pillar of Luxembourg’s capital markets infrastructure, with more than €9 trillion in Assets under Custody. As a central securities depository (CSD), Clearstream ensures efficient settlement, secure custody, and effective collateral management for a wide range of asset classes. Together, the LuxSE and Clearstream create an integrated ecosystem that reinforces Luxembourg’s reputation as a reliable and sophisticated hub for global financial operations, meeting the needs of international firms seeking stability and connectivity.
By 2030, Luxembourg’s financial centre aims to be the definitive base for multinational corporations and financial institutions seeking stability in an increasingly volatile world. Through continued advancements in corporate banking, non-bank financial intermediation, and innovative risk management solutions, Luxembourg is set to expand its role as a hub where businesses can scale confidently across borders. As global challenges intensify, Luxembourg will continue to be the resilient anchor that empowers firms to thrive internationally, setting a new standard for operational security and financial growth in uncertain times.
Protecting Future Wealth
Our Ambitions
Strengthen Luxembourg’s role as a globally recognised hub for wealth management, offering stability in a volatile world and a high degree of expertise to meet the wealth and succession planning needs of international clients and their families
Continue developing and expanding Luxembourg’s investment toolbox to serve international wealth management clients, including providing access to private assets in a well-regulated environment
Deepen Luxembourg’s role as a leading European centre for cross-border life insurance, building on the security and best-in-class investment and structuring flexibility that the country offers.
Continue to attract private banking, family office and wealth management activities to Luxembourg by proactively engaging with global financial institutions.
Securing and expanding wealth requires an environment where financial stability and innovation work hand in hand. Luxembourg’s wealth management sector, anchored by long-standing private banking expertise and a life insurance market fully geared towards the needs of the wealth management industry, has developed a global reputation for offering high-net-worth individuals, family offices, and institutional clients both security and flexibility. This ecosystem is uniquely designed to meet the complex needs of clients with international and multigenerational objectives, providing peace of mind even in volatile times.
Luxembourg’s commitment to maintaining a forward-thinking regulatory framework has been central to attracting global wealth. Its structures for wealth management, from private banks to family offices,
benefit from comprehensive EU passporting rights, allowing for seamless cross-border transactions.
The country’s stability, supported by commitment to maintain the highest international and European standards, has helped make Luxembourg home to over 115 international banks and hundreds of dedicated family office services, all of which rely on Luxembourg’s clear, supportive legal framework. This political and economic stability has been a critical factor in Luxembourg’s ability to attract assets seeking secure and resilient booking centres during periods of geopolitical uncertainty. Luxembourg’s International Market Volume (IMV) share has grown from 4.2% in 2020 to 4.6% in 2023, reflecting its rising position in global wealth management, being among the winning jurisdictions together with the US and the UK (see Figure 1).
International Market Volume by leading wealth centres (In US$ trillion and % of total IMV):
Source: Deloitte Wealth Management Centre Database (2024), Deloitte analysis (2024)
A distinguishing feature of Luxembourg’s financial environment is its focus on investment vehicles designed to accommodate the unique needs of global clients. Flexible frameworks, such as the Société de Participations Financières (SOPARFI) and the Special Limited Partnership (Société en Commandite Spéciale, SCSp), provide tailored solutions for private wealth management, enabling efficient asset holding, succession planning, and capital pooling. The SOPARFI, as a non-regulated but fully taxable holding and financing company, benefits from Luxembourg’s participation exemption regime, allowing for exemptions on dividends and capital gains from qualifying participations. This structure is particularly advantageous for wealth preservation and multigenerational planning. The SCSp, on the other hand, offers unparalleled contractual flexibility, making it an ideal vehicle for private equity and real estate investments. Its tax-transparent nature ensures income is taxed at the partner level, optimising outcomes for private wealth clients. The completeness of Luxembourg’s toolbox, coupled with Luxembourg’s multilingual workforce and deep expertise in investment structures, has made it the choice of leading global asset managers, whose clients seek a reliable base for international wealth management. By providing solutions that align with the unique needs of entrepreneurs and supporting multigenerational wealth planning, Luxembourg plays a critical role in fostering succession planning within the EU. Together with the country’s reputation as a haven of stability, this also explains the growing interest of family offices in Europe to relocate part or most of their activities to Luxembourg.
Luxembourg’s regulatory framework for multi-family offices plays a crucial role in creating an ecosystem dedicated to protecting and growing future wealth. By fostering a secure and professional environment, this framework ensures that high-net-worth families benefit from expert wealth management tailored to their multigenerational and international needs. Integrated with Luxembourg’s broader financial ecosystem, featuring a wide array of investment structures, multilingual expertise, and political stability, this framework reinforces the Grand Duchy’s reputation as a leading hub for safeguarding and growing wealth across generations.
Private banks in Luxembourg integrate traditional wealth management with advanced, diversified investment options, spanning private equity, real estate, and impact investing. Luxembourg’s multi-currency portfolios and tax-efficient investment vehicles have been carefully designed to meet the needs of clients operating in multiple jurisdictions, ensuring both growth potential and stability. Discretionary portfolio management, provided by MiFID-compliant investment firms, offers bespoke, dedicated advice tailored to the unique objectives of high-net-worth individuals (HNWIs), ensuring that portfolios are optimally structured to align with their risk appetite and long-term goals. Luxembourg’s ranking as one of the most politically and economically stable International Wealth Management Centres enhances this offering. These banking services are backed by Luxembourg’s AAA-rated sovereign status, providing an added layer of security and reliability, which is especially valued in a rapidly evolving global economic landscape.
Life insurance plays an important complementary role within Luxembourg’s wealth management ecosystem, offering secure and adaptable solutions for wealth preservation and multigenerational transfer. The availability of dedicated or collective funds together with discretionary, advisory or direct investment management, and a breadth of life cover options, offers a platform to cater for the often complex cross-border needs of individuals, families and their businesses. The country’s pioneering Triangle of Security, an investor protection regime unique to Luxembourg, ensures that assets underlying unit-linked life insurance contracts are held off balance sheet at an approved custodian. The combination of a tripartite agreement between insurer, custodian and regulator, the Commissariat aux Assurances, together with a super-preferential right of policy holders of recovery over policy assets provides unmatched protection, reinforcing Luxembourg’s position as a top destination for unit-linked life insurance policies.
"Luxembourg’s financial centre stands out as a stable, reliable platform for global operations, safeguarding wealth for future generations, and advocating for balanced global financial regulations."
Beyond regulatory strength, Luxembourg’s proactive adherence to global transparency standards, including the CRS, and the Directives on Administrative Cooperation has enhanced its standing as a trusted jurisdiction for international wealth management. Through full compliance with these European and international benchmarks, Luxembourg ensures that clients benefit from a tax-efficient and transparent environment, without compromising on regulatory integrity. This approach resonates with high-net-worth individuals and institutions seeking a jurisdiction that balances financial security with responsible governance. Its strong alignment with transparency and governance expectations has further positioned Luxembourg as a wealth management hub capable of navigating the rising demand for hybrid client experiences and digital transformation in financial services.
Luxembourg’s wealth management, private banking, and life insurance sectors are primed to set the global standard in wealth preservation and expansion. Through its ongoing evolution of regulatory and investment frameworks, Luxembourg supports clients in achieving their generational wealth goals, positioning itself as a steadfast partner in wealth protection and growth. This commitment to innovation and stability ensures Luxembourg remains at the forefront of wealth management, equipping clients with the tools and confidence needed to secure and grow their assets in an increasingly complex world.
A Voice for Global Finance
Our Ambitions
Position Luxembourg as the EU home for global financial institutions, seeking a stable, international and business-minded base of operations in Europe.
Support economic growth in Europe and globally, by advocating for policies that support cross-border financial services and products within a Single Market that remains open to the rest of the world.
Support the global ambitions of financial institutions in Europe by providing access to the right expertise and interconnected global markets as well as to a toolbox of investment vehicles that are recognised and trusted by international investors.
In a dynamic and shifting global financial environment, Luxembourg stands as a voice for global finance, championing the interests of international financial institutions looking to navigate the EU market, and supporting EU firms as they expand beyond Europe. With its unique position as a gateway to and from the EU, Luxembourg plays a critical role in promoting policies that enable cross-border finance, advocating for regulatory frameworks that facilitate both market entry and international expansion.
Luxembourg is home to 115+ banks, of which only 7% are domestic, whereas close to 45% are headquartered in non-EU jurisdictions. In the asset management sphere, fund promoters in Luxembourg originate from 79 countries worldwide and distribute into 80 jurisdictions.
It is no surprise in this context that think tank New Financial has consistently recognised Luxembourg as a leading location for international cross-border financial services, ranking third globally after the US and the UK, and the key jurisdiction within the EU for such activity. Moreover, Luxembourg is the largest trade partner in financial services for the UK in the EU, ahead of Ireland and France, and the largest in the world after the US (see Figure 2). The interconnectivity between Luxembourg and the UK, which is home to one of the largest financial centres in the world, underlines Luxembourg’s central role as a financial hub well beyond the EU Single Market. As well as its ability to attract global capital to the EU.
UK Financial Services Exports by Destination (2023):
Geographical Breakdown of Country of Issuer of Portfolio Investments held in Luxembourg:
In an evolving regulatory landscape, Luxembourg’s influence as a trusted advocate for international finance within the EU is essential. By engaging proactively within European and global fora, Luxembourg champions balanced, business-friendly policies that help global financial institutions operate effectively within the EU. Luxembourg remains committed to a regulatory environment that accommodates these firms’ unique needs and specificities, ensuring that regulations foster stability without hindering operational efficiency.
Luxembourg is moreover deeply invested in initiatives such as the Savings and Investment Union (previously the Capital Markets Union) that enhance Europe’s financial integration and expand opportunities for cross-border capital flows.
By advancing frameworks for sustainable finance, digital innovation, and regulatory harmonisation, Luxembourg supports a robust financial system that allows firms on both sides of the EU’s borders to thrive.
Looking toward 2030, Luxembourg aims to be the premier hub for globalised finance, offering international firms a stable, supportive environment for expanding within the EU while also enabling EU businesses to connect seamlessly with global markets. Luxembourg’s commitment to promoting balanced, forward-looking policies strengthens its position as a leading financial centre, setting the standard for cross-border finance and stability in an interconnected world.