IFC Review • 2010
seen their share of problems, but these seem to be sorting themselves out. Insurance
Luxembourg remains an attractive location for captive re-insurance companies, as well as life insurance. Luxembourg’s life insurance sector is the 13th largest in Europe. Life insurance premiums rose 12.5 per cent in the first half of 2009, with classic guaranteed return products up 74 per cent. The single premium insurance policy remains attractive, especially when combined with a securitisation vehicle.
Foundation, but also new laws are being introduced, regarding ASBL, the not-for-profit association. The Luxembourg Government is proposing to exempt microfinance funds from the Luxembourg subscription tax. Apparently 45 per cent of the worlds microfinance investment vehicles are based in Luxembourg. Intellectual Property (IP) and Research
Luxembourg’s ship register had 205 units on its books at 31 October 2009, representing 1.6 million tons. This may well be a record for a landlocked country. The Maritime business is growing. The ‘mega’ or ‘super’ yacht also has its place in Luxembourg, with the attractive Luxembourg flag.
Luxembourg, in a forward-thinking move, has moved to actively encourage research and development. This fits in well with the new Luxembourg University, already populated by a few thousand students from around the world. By making Luxembourg fiscally attractive for IP, Luxembourg can cement itself in the international market as a world centre for research. There are advantages in holding patents and IP rights through Luxembourg entities, with important fiscal exemptions of up to 80 per cent.
Philanthropy and Microfinance
Conclusion
Luxembourg has finally been able to
Luxembourg is a founder member of
Maritime
trends and with its own financial, commercial and industrial industries. Considering its size, the way Luxembourg keeps in close contact with countries such as China and Russia as well as countries from the EU, the Middle East and North and South America, is all the more impressive. As a result of these relationships, Luxembourg is a real international melting pot. Luxembourg continues to sign new tax treaties with the world. It has ratified 50 treaties, and has signed, but not yet ratified, 17 more, making a total of 67treaties in play. These tax treaties may have been set up for one purpose, but with financial innovation can be used for any number of purposes and pursuits. When using treaties, ‘substance’ is, in certain circumstances, becoming relevant. In the long term, this is good for Luxembourg, making it an even more attractive country to live in. When looking ahead to 2010, despite the fragility of the global financial system, Luxembourg at least has the advantage of being a small country able to adapt quickly to new circumstances.
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Luxembourg
Keep up to date every month with all new articles and more by registering for the IFC Review monthly e-journal. Simply its fair share subscriptions@ifcreview.com of excitement. For enter the philanthropy market. Notwith the EU. The subject Luxembourg Government email the ‘ej’ example, Dexia, Fortis, Iceland, have only is there an attractive Luxembourg remains in close touch both with EU
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