EXECUTIVE SUMMARY
The financial sector is a cornerstone of Luxembourg’s economy, accounting for 15% of salaried employment and 30% of national gross value added (GVA) in 2024. Employment in the sector reached 73,272 individuals by the end of 2024, up from 54,195 in 2014, reflecting an average annual growth rate of 3.1% over the past decade – even amid periods of global uncertainty.
The workforce is notably diverse and international, with women representing approximately 47% of all employees and foreign nationals making up 82% of the total. A majority – nearly 54% – of individuals employed in Luxembourg’s financial sector reside within the country, up from nearly 49% in 2014, reflecting the growing presence of international professionals coming from non-neighbouring EU countries as well as from outside the EU who have chosen the Grand Duchy to advance their careers.
The sector’s GVA amounted to EUR 17.3bn in 2024. Banking contributed 43%, followed by investment fund management (22%) and legal, audit, and consulting services supporting the financial sector (15%). Productivity levels remain high: each employee in the financial sector generated an estimated EUR 236,400 of value added in 2024, which is 2.4 times the national average across the rest of the economy.
The financial sector has a strong ripple effect on the broader economy. For every job created within the sector, 1 additional job is created in the general economy, reflecting an employment multiplier of 2.
In terms of public finances, tax contributions reached EUR 7.2bn in 2024. The financial sector accounts for the majority of revenues from Corporate Income Tax (IRC), Municipal Business Tax (ICC), and Wealth Tax (IF) – representing at least 60% of the total collected in each category. Additionally, the sector contributed approximately one-quarter of the total revenue generated from Withholding Tax on Salaries (RTS).
Over the last decade, banking assets increased by nearly 30%, reaching EUR 957.8bn at the end of 2024 while overall employment remained stable. This growth occurred despite a decline in the number of banking institutions, reflecting ongoing structural consolidation and the industry's underlying resilience.
Investment fund management recorded EUR 7.4trn in assets under management (AuM). Alternative investment funds now represent nearly 36% of total AuM more than tripling in size from EUR 833.7bn in 2018 to EUR 2.6trn at the end of 2024 while UCITS assets have also increased by a CAGR of 6% over the same period and seen strong inflows despite fluctuations primarily due to public market effects.
Premium collection in the insurance sector has grown substantially, with life insurance remaining the dominant segment. Despite some volatility over the past decade, life premiums rebounded in 2024 to reach a new record of EUR 29.5bn. Non-life premiums have increased sixfold since 2014, driven largely by Brexit-related relocations and subsequent business expansion in Luxembourg. Reinsurance revenues also rose steadily reaching EUR 14.5bn in 2024 and reflecting sustained international demand for risk transfer solutions, particularly from international cedants.
Luxembourg’s financial sector remains resilient and growing in the face of an increasingly complex and fragmented geopolitical environment, with growing diversification of activities conducted by a truly multicultural and diverse workforce.