Opening a bank account in Luxembourg

Luxembourg is one of the nine countries in the world with an AAA rating, with a public debt of only 24.4 % of GDP and growth consistently above the EU average. It is one of the most politically and economically stable countries in the world. There are 141 international banks in Luxembourg, supported by insurance companies and complementary consulting, auditing and legal services. A cosmopolitan and multilingual environment, it relies on a continuous influx of professionals and skilled labour from abroad, who are credited with making a major contribution to the country’s wealth. The country’s stability is reflected in the banking sector, where banks are well capitalised and highly regulated. This high level of regulation ensures that banks operate in a safe and transparent manner, providing a secure environment for customer deposits. During times of global economic instability, the security offered by Luxembourg banks can be particularly reassuring.

Luxembourg private banks offer a range of products and services dedicated to UHNWI and family office clients.

Opening an account in a Luxembourg bank can offer several significant advantages for both individuals and companies. Luxembourg is renowned for its stable and secure banking environment, its confidentiality, efficient services and many other distinctive features.

The main reasons why we can consider it advantageous to have an account in Luxembourg is because of its stability and security: the country’s stability is reflected in the banking sector, where banks are well capitalised and highly regulated. This high level of regulation ensures that banks operate in a safe and transparent manner, providing a secure environment for customer deposits. During times of global economic instability, the security offered by Luxembourg banks can be particularly reassuring.

Furthermore, banking secrecy has been one of the hallmarks of the Luxembourg banking system, and although changes have been made to comply with international transparency standards, the banking system continues to offer a higher level of confidentiality than many other countries, with a significant commitment to protecting the privacy of its customers and a strict regulatory framework that ensures high standards of compliance and consumer protection, including international regulations against money laundering and terrorist financing, offering additional peace of mind to customers.

Luxembourg banks are known for the high level of service and professionalism they offer and are distinguished by their operational efficiency and ability to provide tailor-made financial solutions, working in ‘open architecture’, choosing products from competing companies if they perform better than ‘in-house’ products, making the banking experience smooth and stress-free, offering customers easy and convenient access to international investment opportunities.

Having a bank account in Luxembourg can be an effective diversification strategy, an essential component of financial risk management and reduce the risk associated with concentrating resources in one country or banking institution.

Luxembourg offers tax advantages for certain financial and investment structures, in compliance with international tax transparency regulations. An account held with a Luxembourg bank as a natural person will have to be reported in the RW form of the tax return.

Luxembourg is one of Europe’s leading centres for wealth management. Banks offer high-quality wealth management services, including personalised advice, portfolio management and wealth planning. These services are ideal for clients with significant assets who seek professional and sophisticated management of their assets.

In conclusion, opening an account with a Luxembourg bank offers numerous advantages ranging from security and stability to investment diversification, wealth management, access to international markets, tax benefits and financial innovation. For individuals and companies looking for a safe, efficient and highly professional banking environment, Luxembourg is an excellent choice.

Aeffe Capital can select the bank and accompany the client to:

– Prepare the KYC dossier;

– Describe the client’s wealth situation;

– Negotiate the rates applied to the portfolio under management.

– Make a consolidated report of all bank accounts

Our independence from banking groups guarantees an effective and independent result.

Aeffe Capital’s added value lies in its ability to assist clients in structuring their asset portfolios and preparing consolidated management reporting tailored to their specific needs, helping them in selecting banking and financial partners and maintaining the relationship with them.