The tiny country of Luxembourg offers big thing when it comes to offshore banking. Since international finance is one of the country’s primary industries, the banking community offers many services and accommodations not always found in other countries used as tax havens.
The country of Luxembourg is relatively small, covering only 1000 square miles of land with a population of approximately 500,000. It is a very rich country for its size, with a GDP per capita of $79,400 and a an average yearly GDP of over USD 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 spoken there as well.
With international finance as one of its primary industries, Luxembourg is known for being a safe tax haven for non-EU investors.
The Grand Duke, considered to be a member of the ruling class, along with a cabinet of 12 ministers, hold power in the Executive branch of the government. The legislative branch of government is Parliamentary consisting of a Chamber of Deputies. The Civil Law based legal system (the most common in the world), is followed utilizing laws that have already been established.
As in most European countries, the official currency is the Euro(EUR) which replaced the Franc in 2002. Luxenbourg could be seen as a very safe country to use as a haven, to avoid paying taxes on their money, for the right type of non-EU investor. Offering accounts that will allow money to grow tax free, non-EU citizens should consider Luxenbourg to be one of the first on their list for opening off-shore accounts.
Widely regarded as one of, if not THE, most stable and secure offshore haven, Luxembourg is a center for offshore private banking. Pioneering in business practices that are both ethical and profitable, and maintaining a highly structured and regulated financial sector specializing in private banking, an investor looking to go offshore should always take this country and its banks into consideration.
With over 220 offshore banks which hold more than 600 billion euros, this country is second only to London as the largest banking giant in Europe. Yes, it is even bigger than Switzerland. As a non resident banking in Luxembourg, you will get to enjoy all the benefits that sheltering your assets offshore provides. While certain kinds of income are now subject to a 15% withholding tax for certain kinds of individuals, if you are not in one of the countries that has signed the EU Savings Tax Directive of 2005 then likely you are sheltered 100% and your assets can grow tax free in a superior banking environment.