The small country of Luxembourg offers big things when it comes to offshore banking. Since international finance is one of the main industries in the country, the banking community offers many services and conveniences that are not always found in other countries used as tax havens.
The country of Luxembourg is relatively small, covering just 1,000 square miles of land with a population of about 500,000. It is a very wealthy country for its size, with a per capita GDP of $79,400 and an average annual GDP of more than $25 billion. Located in Western Europe with Belgium, France, and Germany on its borders, the official languages of Luxembourg include German, French, and Luxembourgish. English is also spoken there.
With international finance as one of its main industries, Luxembourg is known to be a safe tax haven for investors outside the EU.
The Grand Duke, considered a member of the ruling class, along with a cabinet of 12 ministers, hold power in the Executive branch of government. The legislative branch of government is Parliamentary and consists of a Chamber of Deputies. The legal system based on Civil Law (the most common in the world) is followed, using laws that have already been established.
As in most European countries, the official currency is the euro (EUR), which replaced the franc in 2002. Luxembourg could be seen as a very safe country to use as a safe haven, to avoid paying taxes on your money, for the type correct investor from outside the EU. Offering accounts that will allow money to grow tax-free, non-EU citizens should consider Luxembourg one of the first on their list for opening accounts abroad.
Widely considered one of the most stable and secure offshore tax havens, if not THE, Luxembourg is a hub for offshore private banking. Pioneering business practices that are both ethical and profitable, and maintaining a highly structured and regulated financial sector that specializes in private banking, an investor looking to go abroad should always keep this country and its banks in mind.
With more than 220 offshore banks holding more than 600 billion euros, this country ranks second after London as the largest banking giant in Europe. Yes, it’s even bigger than Switzerland. As a non-Luxembourg resident bank, you can enjoy all the benefits of protecting your offshore assets. While certain types of income are now subject to 15% withholding tax for certain types of people, if you are not located in one of the countries that signed the 2005 EU Savings Tax Directive, it is likely that You are 100% protected and your assets can grow tax free in a superior banking environment.
