Buy a company in Luxembourg

You are interested in buying a company in Luxembourg? That’s a great choice! Luxembourg is one of the most attractive countries in Europe for doing business. Here are some reasons why:

  • Luxembourg has a dynamic, stable and diversified economy that offers many opportunities for entrepreneurs and investors. It is the largest investment fund center in Europe and the second largest in the world, and it also has a strong presence in sectors such as finance, ICT, space, biotech, cleantech and logistics.
  • Luxembourg has a reliable, stable and transparent political and legal system that ensures the protection of your rights and interests. It is a constitutional monarchy with a long tradition of democracy and social peace. It is also a founding member of the European Union and a key player in international organizations.
  • Luxembourg has an attractive tax system for businesses that is competitive and compliant with international standards. It offers low corporate income tax rates, no withholding tax on dividends, interest and royalties, a wide network of double tax treaties, and various incentives for innovation and research.
  • Luxembourg has an international and multilingual talent pool that can help you grow your business across borders. It has the most international population in the EU, with people from over 170 nationalities. It also has a highly skilled and educated workforce that speaks several languages, including French, German, English and Luxembourgish.
  • Luxembourg has an excellent digital and physical infrastructure that facilitates your business operations and connectivity. It has a state-of-the-art ICT network that ranks among the best in the world, with high-speed broadband, data centers and cybersecurity services. It also has a top performing logistics and supply chain management sector that connects you to the main European markets by road, rail, air and water.

The most popular industries in Luxembourg are:

  • Finance, Insurance, and Real Estate: This industry accounts for 61% of the registered companies in Luxembourg and is the third most competitive financial center in Europe after Zurich and London. Luxembourg specializes in international fund administration and has a wide network of double tax treaties and low corporate tax rates.
  • Services: This industry accounts for 21.8% of the registered companies in Luxembourg and includes sectors such as ICT, space, biotech, cleantech and logistics. Luxembourg has a state-of-the-art ICT network, a leading satellite operator (SES), and a vibrant start-up scene.
  • Retail Trade: This industry accounts for 4.5% of the registered companies in Luxembourg and benefits from a mature, high-spending consumer market and an international and multilingual talent pool.

These are the top three industries in Luxembourg based on the number of registered companies, but there are also other industries that contribute to the economy, such as steel, tourism, agriculture, and mining. Luxembourg has a dynamic, stable and diversified economy that offers many opportunities for entrepreneurs and investors.

Securitisation is a financing technique by which homogeneous income-generating assets − which on their own may be difficult to trade − are pooled and sold to a specially created third party, which uses them as collateral to issue securities and sell them in financial markets.

This presents advantages to original lenders and originators (e.g. it allows them to reduce funding costs and increase their funding capacity while still satisfying regulatory capital requirements), investors and markets, and it may even have broader economic and social benefits. At the same time, securitisation can be a source of risk to the financial system.

A case in point is how it amplified the recent financial crisis by contributing to lengthening the intermediation chain, by creating conditions which resulted in misaligned incentives and interests between participants in the securitisation chain, by increasing the reliance on mathematical models and on external risk assessments and, finally, by increasing both individual and systemic bank risks.

Although the European securitisation market grew significantly in the run up to the crisis, it has dramatically contracted since, despite the fact that most European securitised products fared well in the recent financial crisis in comparison with their US counterparts.

In the current low-growth and cautious lending environment, a simple form of securitisation was proposed as a way to equip banks with the necessary funds to provide new lending to the real economy. Thus, in the context of the creation of the Capital Markets Union, various stakeholders have published their reflections and launched consultations on what possible changes could be brought to the process of securitisation itself, in order to simplify it, render it less opaque and, as a result, reduce its potential risk

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