The economy of the Grand Duchy of Luxembourg relies heavily on its financial sector, as it contributed approximately 30% of gross domestic product in the last fiscal year.

Luxembourg’s profile as an international finance centre has seen significant growth in recent years, on the back of its increasing focus on international listings.

Banque et Caisse D’Epargne
Jean-Claude Finck, CEO and President

Facing competition from other centres, Luxembourg has found ways to innovate, writes Jan F Wagner.
Despite the perceptions of many in western Europe, Luxembourg’s success as a financial centre is not down to its private banking industry alone. In fact, it has more to do with a financial activity that is a lot more mundane: the domiciling and administering of investment funds.

Jan F Wagner examines Luxembourg’s options for maintaining a competitive edge as the end of its tax-free status looms.
In Germany, Luxembourg is known for one thing only: it’s where rich Germans put their savings to shelter them from tax. This may sound overly simplistic, but it’s easy to see why the tiny country has gained that reputation.