Luxembourg’s extensive legal, fiscal and regulatory provisions have clearly helped it become the jurisdiction of choice for the European investment fund market. The Grand Duchy’s success is most easily demonstrated by the fact that its funds form nearly one-quarter of the net assets of the regulated European investment fund industry.
Indeed, Luxembourg’s fund industry employs at least 11% of the workforce and accounts for more than 30% of its gross domestic product. Furthermore, the industry directly contributes 32% of Luxembourg’s tax revenues. The healthy fiscal revenues generated have secured an ongoing commitment to public expenditure. As a result, Luxembourg has an excellent public services infrastructure which contributes to residents enjoying a consistently high quality of life.
