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In Brief

Luxembourg is a small, landlocked country in western Europe bordered by Belgium, France, and Germany. The government system is a constitutional monarchy; the chief of state is the grand duke, and the head of government is the prime minister.


Benefiting from its proximity to France, Belgium, and Germany, Luxembourg has a mixed economy in which the economy includes high levels of openness and entrepreneurial activity, combined with centralized economic planning and government regulation. Luxembourg is a member of the European Union (EU).

The Luxembourg House of Financial Technology (LHoFT) was set up as a Foundation, a not for profit to be the central platform for driving digitalisation in financial services within Luxembourg.


The LHoFT acts as the focal point for all things Fintech, facilitating the needs of the traditional financial services as well as technology companies in the sector. This includes assistance in capital raising (Equity through VCs and subsidies/grants from Government) as well as connectivity to key stakeholders and potential customers and partners in the ecosystem.


The LHoFT collaborates with the key financial services associations, Government, the regulator and the Chamber of Commerce.


The LHoFT Foundation is backed by both the public and private sector in Luxembourg to ensure the future competitiveness of the Luxembourg Financial Services Industry with a focus on digitalisation. The LHoFT is the focal point for all things Fintech in Luxembourg, and has a large facility that includes co-working and event facilities in the centre of Luxembourg City.

All of Luxembourg’s competence is in cross-border distribution. It is the leading cross border centre in Europe. Over 70% of UCITS sold in key Asian centres such as Singapore and HK originate from Luxembourg.

Market Summary


Luxembourg is a small country, just over 600,000 residents, that punches above its weight. Over 50% of the residents are foreigners and 200,000 people commute into Luxembourg every day from Belgium, France and Germany to work here.


The core sector of the economy is Financial Services, though there is considerable growth in in space technologies (Luxembourg’s SES Satellites is the world’s leading provider of Satellite equipment) and IoT. Steel is still a key part of the economy, with Arcelor Mittal HQ’d in Luxembourg, alongside a host of other large multinationals choosing Luxembourg as their European HQ.

Luxembourg has a AAA rating, largely due to a strong balance sheet and political stability. It has the highest number of languages spoken fluently per person, 4.2. French and English predominate in the capital, Luxembourg City, and in Financial Services. German, Luxembourgish, Portuguese and Italian are also very common.


Luxembourg is also home to key European Institutions, such as the European Investment Bank (EIB), the European Investment Fund (EIF), the European Stability Mechanism (ESM), the European Court of Auditors and the European Courts of Justice. The European Parliament also operates in Luxembourg.


Luxembourg is the largest Investment Management sector in the world outside the US, catering for over €5.3 Trillion in assets under management (AuM).


It is a product factory – the middle and back offices of fund managers are in Luxembourg, while the front office, the portfolio managers, reside in other centres, delegating functions back to Luxembourg entities. Core entities of the Investment management value chain reside in Luxembourg; Management Companies, Depositories, Custodians, Administrators and all other ancillary services. 


Luxembourg is the leading country for UCITs, with significant recent growth in Alternatives (AIFs), particularly in Real Estate and Private Equity. Luxembourg has core competency in cross-border distribution, with the fund products being sold all over the world. Luxembourg also has a large Life Insurance sector with its obvious links to the Investment Management industry.


Sustainable Finance has become a key strategic driver of change in Luxembourg financial services, and the industry has taken a leading role in the area. Luxembourg has the world’s leading Green Exchange, where over 50% of the world’s Green bonds are listed.


Fintech firms in Luxembourg principally work in the B2B space, servicing the numerous and easily accessible Financial institutions in the country. As such, the predominant demand is for Regtech solutions, followed by Fundtech and Insurtech.


Technologies in demand include Blockchain and Machine Learning. In parallel, Luxembourg has the leading B2C and B2B payments sector in the EU.


Highly multicultural and welcoming of foreigners who are key to the economic prosperity of the country.


The Country’s slogan is “Lets Make It Happen”, and it stands by this principle.


Luxembourgers have strong national pride and they value their independence and autonomy. Personal values revolve around modesty, friendship, and above all family.

Fast facts

Population: 640,000

Languages: French, English (main), German, Luxembourgish, Portugese & Italian

Currency: Euro (EUR)

Political System: Parliamentary democracy in the form of a constitutional monarchy

Legal System: Civil Law

IA Partner & FinTech Hub

The LHoFT is Luxembourg’s dedicated Fintech centre where finance and technology interact to foster innovation and develop solutions to shape the future of financial services. Offering Fintech incubation, co-working and a soft-landing platform, the LHoFT also connects, engages with and creates value for the broader Fintech ecosystem: financial institutions, IT industry, investors, research and academia as well as regulatory and public authorities.

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