01
Available instruments
Private-wealth planning may use SPFs, SOPARFIs, investment funds, insurance solutions, fiduciary arrangements and recognised foreign trusts; the tool depends on owners, assets, governance, succession, regulation and tax
02
Legal constraints
An SPF is restricted to eligible investors and personal asset management and should not conduct an ordinary commercial business. A SOPARFI is not a special preferential status; funds and managers remain subject to the applicable product and licensing framework
Asset protection starts with a permitted legal form and real governance. Private-wealth planning may use SPFs, SOPARFIs, investment funds, insurance solutions, fiduciary arrangements and recognised foreign trusts; the tool depends on owners, assets, governance, succession, regulation and tax.
03
Governance and succession
A legal address does not replace the centre of effective management. Board process, authority, local decisions, directors, people, premises, expenditure, agreements and risk control should match the company's role. Formation connects the name, notarial deed for capital companies, capital, registered office, RCS and RESA, business permit, Register of Beneficial Owners, tax registration, accounting and annual reporting.
04
Banking perimeter
Banks, investment firms, payment and e-money institutions and managers are checked in the CSSF's official database; private banking, custody, corporate accounts, fund services and payments depend on authorisation and client policy. A bank reviews UBOs, RBE evidence, tax residence, source of wealth and funds, capital history, business plan, financials, markets, counterparties, expected flows, PEPs and sanctions risk and is not obliged to open an account.
05
Tax map
From 2025 the headline corporate income-tax rate for profit above EUR 200,000 is 16%; with the employment-fund surcharge and communal business tax the Luxembourg City combined example is 23.87%. Individuals face progressive taxation based on class, family, residence and municipality; dividends, gains, structural distributions, wealth and other countries' taxes require separate analysis.
FAQ
FAQ
Where should a private wealth: foundations and trusts project in Luxembourg start?
Private-wealth planning may use SPFs, SOPARFIs, investment funds, insurance solutions, fiduciary arrangements and recognised foreign trusts; the tool depends on owners, assets, governance, succession, regulation and tax
Can formation or account opening be guaranteed?
This material is general information. Formation, licensing, tax outcomes and account opening depend on the facts and the decision of the competent authority or financial institution.
Why are tax and banking reviewed together?
From 2025 the headline corporate income-tax rate for profit above EUR 200,000 is 16%; with the employment-fund surcharge and communal business tax the Luxembourg City combined example is 23.87%. A bank reviews UBOs, RBE evidence, tax residence, source of wealth and funds, capital history, business plan, financials, markets, counterparties, expected flows, PEPs and sanctions risk and is not obliged to open an account.
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Related routes
- Company formation
- Open primary source
- Bank accounts and private banking
- Open primary source
- Tax strategy
- Open primary source
- Relevant practice
- Open primary source