About the Grand Duchy of Luxembourg

Luxembourg: in a nutshell
Luxembourg is situated in the center of Europe, between Belgium, Germany and France. The small country has a land area of 2,586 km2 and a population of 524,000 inhabitants. The Grand Duchy became fully independent in 1867 and has today the political system of a constitutional monarchy with a Prime Minister. Luxembourg’s Government has a strong reputation for its efficiency due to a long tradition of cooperation between the two biggest political parties in the interest of social peace and the creation of a business friendly environment. The official languages are Luxembourgish, French and German.
The Grand-Duchy is a full member of all major international institutions and afounding member of the European Union.
A number of major European institutions, including the European Investment Bank, the Court of Justice of the European Union and the European Court of Auditors, have their headquarters in Luxembourg.
  • Largest European investment fund center and 2nd largest worldwide € 2.29 trillion net assets under management (ALFI – July 2012)
  • 1st in labor productivity per person employed (The Conference Board – Total Economy Database 2012)
  • Luxembourg - Best Micro City with economical potential (fDi Magazine – European Cities & Regions of the Future 2012)
  • 2nd highest gross domestic product (GDP) per capita (International Monetary Fund - World Economic Outlook Database 2012)
  • 1st ranking in the FDI Restrictiveness Index (OECD 2012)
  • 3rd worldwide in overall innovation and competitiveness (Information Technology and Innovation Foundation - 2009)
  • 4th in the Eco-Innovation Scoreboard (Eco-Innovation Observatory – EIO 2011)
  • 7th in the ICT development Index (International Telecommunication Union – ITU 2010)
  • 6th ranking in the International Property Rights Index (Property Rights Alliance – PRA 2012)
  • World’s safest city (Mercer - Quality of living worldwide city rankings 2011)
  • 1st ranking in the Consumer Conditions Index (European Commission 2011)
  • 6th on Quality of Life Index (International Living 2010).

Luxembourg: an attractive business environment
In today’s global world, it is increasingly important for companies that operate internationally to assess the attractiveness of countries or markets.
Luxembourg has much to offer in this respect. Comparisons with other countries illustrate its appeal as a place to do business and its excellent performance in many business areas.
What makes Luxembourg stand apart is that it combines a number of very different attributes to make it a special place:
  • Stable political environment with a strong reputation for pro-business legislation and administration;
  • Accessibility and pro-active involvement of the government with respect to businesses which relocate personnel and operations to Luxembourg (e.g. to obtain visa or trading licenses);
  • Access to a market of over 100 million consumers within a 250 km radius;
  • Excellent basic infrastructure and logistical network (airport, railway);
  • High-performance communication network at competitive rates;
  • Experienced, well-trained and multilingual workforce (French and German are official languages, English is widely spoken);
  • A multilingual and multicultural environment, including strong educational institutions (such as English speaking schools based on both English and American educational systems);
  • Attractive tax legislation and social security system (for companies, employers and employees);
  • Lowest VAT rates in Europe;
  • Sound macroeconomic fundamentals; and
  • Excellent quality of life.

Dynamic financial services

Luxembourg’s success in the financial sector was originally driven by external factors. Subsequently the industry took advantage of its highly experienced and skilled work force, its substantial international clientele and the favorable regulatory environment and widely expanded its range of services and products. As of today 143 banking institutions offer the entire spectrum of corporate and private banking services.

Investment Funds
Luxembourg is an international center of excellence for asset management, management of funds and the distribution of funds. Today, Luxembourg is the undisputed leader in cross-border sales of investment funds, Europe’s largest center for investment funds and 2nd largest investment fund center worldwide.

The country’s large number of private banking clients also benefits the insurance sector. Insurance companies sell various products that are used by institutional clients as asset management tools for their mainly foreign clients.

The Luxembourg Stock Exchange
The Luxembourg Stock Exchange opened in 1929. Since then it has gained a strong reputation for its expertise and efficiency (in terms of quality, speed, security and pricing) in listings, especially in the field of issuance of international bonds, investment funds and global depositary receipts.
Today, the Luxembourg Stock Exchange is ranked first in the issue of international bonds within Europe (more than 29,000 debt securities listed in early 2012). This success is also due to a solid legal and regulatory framework, the huge financial community in Luxembourg and the multiple legal vehicles in Luxembourg that benefit from attractive tax regimes.
The Luxembourg Stock Exchange has operated two markets since 2005: an EU-regulated market (Bourse de Luxembourg) and an exchange-regulated market (Euro MTF multilateral trading facility).
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Mont-Blanc Wealth Management Services AG
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Phone: Richard Crombach CFA (Founder) +41 78 911 0670
Mail: info@mont-blancwms.com