Luxembourg Banking

Luxembourg banking has served as an example to many other countries that have sought to expand their banking industries and financial services.  Banking in Luxembourg is one of the main financial...

Luxembourg Private Banking

Luxembourg private banking is one of the critical areas of Luxembourg’s banking industry. Luxembourg private banking has been in existence for almost two decades, causing Luxembourg to be Europe’s leading centre for assets under management.

Private banking in Luxembourg has contributed to the financial sector’s expansion and plays a key part as a principal source of funding for the insurance and undertaking for collective investments (which are otherwise known as UCI’s) due to role the role of Luxembourg private banking as a distribution platform and manager for assets for investments made in life investment products in Luxembourg.

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Luxembourg private banking business can be considered as offshore private banking based on the fact that over 60% of assets that are under management in Luxembourg come from neighbouring countries, as well as locally. Domestic and offshore private banking in Luxembourg has traditionally been involved in family wealth management which mainly comprises high net worth individuals and wealthy families which account for 50 and 68 percent respectively of clients of assets under investment in Luxembourg private banking business. Corporate executives and entrepreneurs have become part of the new wave of high net worth individuals in Luxembourg private banking offshore and onshore.

Luxembourg private banking services include a very broad range of financial products and services that are personalized to best suit client needs. These private banking Luxembourg products are part of Luxembourg offshore private banking services as well as Luxembourg private banking products that are available locally. Private banking products in Luxembourg will generally include the traditional savings accounts to more sophisticated savings and investment funds.

Offshore private banking Luxembourg has contributed immensely to providing solutions for the creation, maintenance, increase and transfer of wealth. Years of experience in the field has caused Luxembourg private banking specialists and institutions to create very innovative wealth management solutions and in so doing have been remarkable engineers in wealth engineering, asset planning, tax minimization, fund creation and wealth structuring. Most Luxembourg offshore private banking services ultimately allow clients to achieve these goals using specialist investment advice and various entities.

Private banks in Luxembourg benefit from the investor friendly environment that has been established in Luxembourg in terms of the absence of wealth tax, capital gains tax, stamp duties on security transactions, the absence of inheritance tax for offshore clients and a competitively low withholding tax on dividends. In comparison to Switzerland for example with a 35% withholding tax rate on dividends, Luxembourg private banking charges 15% on withholding tax on dividends. Exemptions from these taxes are widely available to offshore customers who are highly attracted to Luxembourg private banking as a result.

A series of anti-money laundering measures were established to curtail and eliminate illegal financial activity in order to protect Luxembourg’s offshore banking and private banking Luxembourg. These measures include a series of due diligence and know Your Client (KYC) procedures that Luxembourg private banks, other Luxembourg banking institutions and customers are expected to comply with.

Luxembourg private banking offshore offers many benefits, some of which include solutions that are tailor made to meet the needs of clients, privacy, professionalism, advice and service systems that are relationship-based and easy access to local and international expertise in private offshore banking.

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