Luxembourg Bank Account - Luxembourg Banking
For free information or to open a bank
account in Luxembourg, call 1-800-830-1055 or
+1-661-253-3303. To establish a Luxembourg
Bank Account please click
here. To order an offshore company plus
account, please click
here.
Luxembourg bank accounts provide for a good
balance of tax incentives, bank security and
bank privacy. Luxembourg is located in Central
Europe and is bordered by France, Germany, and
Belgium and is slightly smaller than the US
state of Rhode Island and has a population of
about 470,000. There has been a tremendous increase
in Luxembourg banking activity as money flows
out of Switzerland to Luxembourg bank accounts
to take advantage of the tax incentives offered
in Luxembourg. Many German clients have moved
their money to Luxembourg bank accounts and
to Luxembourg brokers. The Luxembourg offshore
industry including Luxembourg offshore bank
account industry has benefited from this tremendous
influx of capital.
Prince Henri, the Crown Prince of Luxembourg,
flew to Japan with his entourage to put on a
relative “trade show” to sell the
benefits of banking in Luxembourg. One big benefit
he was selling was that some types of income
could be tax deferred in Luxembourg. As a result,
several Japanese banks and insurance companies
have opened new offices in Luxembourg.
Luxembourg has an extremely stable government
and economic picture. Luxembourg became a grand
duchy in 1815, meaning the territory is ruled
by a grand duke or grand duchess. The head of
government is a prime minister. The Council
of Ministers is recommended by the prime minister
and appointed by the monarch. Luxembourg is
one of the six founding members of the EEC,
now known as the EU and has adopted the Euro
as its national currency. The languages spoken
are French, German and English.
The economy in Luxembourg features solid growth,
low inflation, and low unemployment. Luxembourg
bank and brokerage services have become even
more attractive because they do not impose withholding
tax on European bonds. Tax evasion, as opposed
to tax fraud, is not a crime in Luxembourg.
So, information will not be released to outside
parties in the event of such an accusation.
Nonetheless, as a responsible company, we strongly
recommend that you follow the tax laws in the
jurisdictions in which you are obligated.
Luxembourg bank privacy is strong but not as
strong as some other jurisdictions. In Switzerland,
for example, violating the privacy laws is a
criminal offense. However, in Luxembourg it
is merely a civil offense. Luxembourg bank accounts,
while private, do not possess the as strong
of a penalty for violating privacy laws as Switzerland.
Mainly due to the strength of the Luxembourg
banking industry, the per capita income in Luxembourg
is higher than any other country in the world,
including the United States. The Luxembourg
banking sector has grown and has replaced its
former reliance on iron and steel.
The Luxembourg holding company is the most
popular type of legal entity. This vehicle is
free of taxes in Luxembourg. The holding company
is used to own passive investments such as stocks,
bonds, trademarks and patents as opposed to
operating a going concern.
The Luxembourg holding company is also used
to manage mutual funds. The country has more
managed funds than any other country in the
world.
Luxembourg holding companies are used to own
one’s Luxembourg bank account. They offer
enhanced privacy because the Luxembourg bank
account is owned in the privately held company,
which makes wire transfers in and out of the
account private. The wire transfers are recorded
in the privately owned company name rather than
the person’s name behind the company.
A standard holding company does not pay taxes
except for a negligible 2/10ths of a percent
annual tax on issued bonds and a 10% registration
tax on issued shares of the company. This small
amount is equivalent to the annual corporate
registration fee in most other jurisdictions
and may account for only about $300 to $700
per year depending on the share capital of the
corporation. The fee on company shares figure
has no connection to the amount of money inside
the company. It is simply an annual corporate
renewal fee.
There is not a withholding tax on Luxembourg
bank accounts. In some other European countries
there is, by contrast, a 35% withholding tax
on interest earned by nonresidents.
There are substantial tax breaks and other
financial incentives available. These breaks
are geared toward various industries and have
attracted mutual fund holding companies worldwide.
For more free information or to open
a bank account in Luxembourg, call 1-800-830-1055
or +1-661-253-3303. To establish a
Luxembourg Bank Account please click
here. To order an offshore company plus
account, please click
here.
