1. INVESTMENT CLIMATE. GENERAL FEATURES AND ADVANTAGES
1.1 Luxembourg is a strategic geographic location in the heart of Europe, a successful country due to their outward-looking policies and political stability. The presence of numerous European institutions allows the development of a high volume of international trading relations. Almost the 70% of Europe’s GDP it’s originated within a radio of 700km
1.2 As an EU member state, Luxembourg is required to comply with all EU directives and agreements on trade, imports, import quotas and other several regulations. This European condition allows Luxembourg not to be considered a tax haven anymore.
1.3 The currency in Luxembourg is the Euro. With approximately 150 highly experienced and skilled banking institutions, Luxembourg has a full range of financial services and the two pillars of Luxembourg’s financial services are private banking and fund administration.
2.- TAXATION GENERAL OVERVIEW
The Luxembourg government is committed to maintain relatively low income taxes and social insurance costs. The total corporate tax burden is moderate by European standards. Companies doing business in Luxembourg are subject to corporate income tax, municipal business tax, minimum tax, Chamber of Commerce contribution, net worth tax and VAT. There is no branch tax or excess profit tax.
The following chart shows the numbers for different tax areas.
C. INVESTMENT VEHICLES IN LUXEMBOURG
In past newsletters we have talked about the creation of a SOPARFI and how CE Consulting can advise during the whole process of implementation.
Due to our excellent relationship with Credit Suisse Luxembourg Director, we are now able to offer a wide range of investment vehicles completely personalized depending on customer needs.
• SOPARFI (Financial Holding Company): Legal entity as holding structure for all types of assets, shares can be distributed to individuals; flexible organizational structures (i.e. S.A, S.ar.l. S.C.A).
• SPF - Société de Gestion de Patrimoine Familial (Private wealth management company): Legal entity as “family” holding structure for all financial assets of individuals/families under EU legislation.
• Life insurance: For individuals with EUR 0.5 – 2.5 million wealth.
• SICAV- Société d’Investissements à Capital Variable (Open-ended investment fund): Legal structure for management and ownership of assets in a Collective Investment Scheme.
• SIF SICAV – Specialized Investment Fund: For sophisticated/well informed investors.
• SICAR - Société d’Investissements à Capital Risque (Risk Capital Investment Fund): For investments in private equity/venture capital with high flexibility for investment needs and governance.
In the near future we will organize a presentation in our headquarters in Princesa (Madrid), where executive managers from Credit Suisse Luxembourg will solve your doubts and will provide some colour about the appropriate product for any specific client.