Luxembourg is one of the most popular European destinations for establishment of alternative investment funds, including hedge funds, private equity, real estate funds and other types of secure investment structures.
Trusts are also a great tool for compliant international tax planning and for safeguarding your privacy. A trust offers a high level of privacy because they are not found on any public register, in contrast to most corporate structures.
The trust is not a legal concept existing under Luxembourg law, however there is the alternative of a fiduciary agreement. The use of a fiduciary contract can be helpful in many contexts including equity investment, wealth management, succession planning and the management of guarantees.
Luxembourg law defines the fiduciary contract as an agreement whereby the settlor agrees with the fiduciary that the latter will become the owner of certain fiduciary assets under agreed conditions.
Luxembourg law on trusts and fiduciary agreements only applies to fiduciary contracts where the fiduciary is a credit institution, an asset management company, an investment company with variable or fixed capital, a securitization company, the management company of a common investment fund or a securitization fund, a pension fund, an insurance or reinsurance company or a public institution of national or international character operating in the financial sector.
Although it is not possible to launch a Luxembourg trust, the law recognizes foreign trusts.
SIGTAX S.A. offers trust and fiduciary services in Luxembourg, including setting up a fiduciary agreement or managing foreign trust funds in Luxembourg.