Trade and Invest in Luxembourg
If you are interested in a business opportunity in Luxembourg, you should check out the trade and invest (TI) program. This program helps you innovate and invest in the city. It also offers you the chance to go international from here. Here’s how. It’s not as hard as it noises.
INVEST IN LUXEMBOURG
When it comes to investment opportunities, Luxembourg is one of the most appealing countries. The country offers a variety of incentives that help investors realize their goals. The government offers subsidized loans, cash incentives, and development projects to help attract investment. In addition, there are several national industrial parks with the infrastructure necessary for foreign investors.
Investments in Luxembourg are also regulated, with strict rules regarding risk and liquidity. An SIF can hold up to 30 percent of its assets in the same issuer’s securities. In addition, SIFs are not allowed to hold more than 30 percent of their assets in short positions of the same issuer.
Luxemburg has one of the highest labor and environmental standards in Europe. In fact, Luxembourg receives seven times more investment than the entire continent of Africa. This is in contrast to Africa, where labor standards are generally poor and governments are corrupt.
INVEST IN LUXEMBOURG Service
Linklaters Luxembourg is a global funds firm whose Luxembourg office demonstrates its know-how and proactive approach. Its expertise in the UCITS market and the alternative funds space has led to recognition as a leader in the industry. The firm’s Luxembourg offices offer a range of investment fund services.
Luxembourg’s investment fund industry
Luxembourg’s investment fund industry has seen a recent surge in fund finance activity. In response to the increased demand for fund financing, more banks are offering specialist bridging and leverage solutions. As a result, the Luxembourg fund industry is no longer limited by legal leverage limits.
Luxembourg’s tax regime
The tax regime of Luxembourg is relatively favorable for expatriate workers. It offers a wide range of benefits, including the possibility to deduct a certain percentage of the costs of relocation. Relocation expenses, such as school fees for an expatriate worker’s children, are exempt from tax. In addition, employees who are seconded or recruited abroad for work can deduct 50% of their yearly assignment premium.
Luxembourg’s fintech ecosystem
Luxembourg is home to a thriving Fintech ecosystem. The LHoFT, the country’s dedicated Fintech hub, is home to a wide range of global Fintech companies. Its members represent every field and are at the forefront of innovation. The LHoFT supports innovative start-ups in Luxembourg by providing support to create a business plan and access to funding.
Luxembourg’s asset-backed financing arrangement (ABFA)
The law on financial collateral arrangements in Luxembourg focuses on the grant of security interests over financial instruments. In particular, article 2(4) of the Financial Collateral Law grants a security interest over a financial instrument to an agent or trustee, who has a fiduciary obligation to protect the interests of the third parties. Under Luxembourg law, such security interests are regarded as accessory to the principal claim and do not require maintenance.
Luxembourg’s net asset value (NAV)
As of the fourth quarter of 2021, Luxembourg’s investment funds had a net asset value of 5.86 trillion euros. The NAV is the value of an investment fund’s assets less its current liabilities. It is a key metric used in business valuation.
Luxembourg’s anti-abuse rules
The ATAD (Anti-tax avoidance) directives have greatly changed the European tax landscape. These directives are designed to prevent the avoidance of taxes by using artificial arrangements. The term ‘abuse’ refers to any arrangement that does not reflect economic reality and is intended to give a foreign company an undue tax advantage. However, tax authorities should not automatically consider a transaction abusive if it does not meet specific criteria. Instead, they should assess each case individually.
INNOVATE IN LUXEMBOURG
The strategic location of Luxembourg in the heart of Europe makes it an attractive location for research. The country has a world-class university and specialized research institutes, and is home to many international private companies with strong R&D departments. The country’s culture of openness and reliability are key factors that attract international research companies. In addition, the environment is ideal for developing an agile, collaborative mindset.
The booming Luxembourg economy makes the country an ideal location for companies to grow. The country has strong international ties, with half of its population being foreign nationals. This international outlook makes it ideal for building cross-border teams. As a result, many Luxembourg businesses begin thinking about international expansion from the very beginning.
The Luxembourg government has made it easier for businesses to expand and develop in the country. The government is investing in R&D and supporting innovative enterprises in various sectors. In addition, it is offering help for growing startups through various types of government initiatives and financial support.