Luxembourg: Offshore Business Sectors
The development of the Euromarkets in the 1970s saw the emergence of Luxembourg as a successful international financial centre, and the country is now the world's seventh largest such centre. Workers in the financial services sector make up around 11% of the total population, and the sector accounts for about 28% of GDP, as well as generating a sizeable proportion of the government's tax receipts.
Apart from the Stock Exchange, on which most Eurobonds are listed, there is a well-developed commercial and private banking sector, and Europe's biggest investment fund industry.
Much of this growth has been due to the availability of suitable 'low tax' or 'offshore' forms and structures alongside the normal economy. These are described in Offshore Legal and Tax Regimes. In 2007, however, some of these forms were abolished as a result of pressure from the European Commission.
This section of the site describes the most important types of offshore business activity carried out from the country.