Luxembourg: Offshore Business Sectors
This page was last updated on 17 June 2020.
The development of 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. Financial service workers 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.