G&G Law Firm
2, A Place de Paris
L-2314 - Luxembourg
Matricule: 2012402452
RCS N. B251098
(00352) 27409090 - (0039) 3292239643
gglawfirmsarl@gmail.com
Holding Luxembourg
The Family Wealth Management Company (FPM).
Holding Luxembourg: A strategic opportunity for wealth management
The choice to set up a holding company in Luxembourg represents a privileged solution for families and companies wishing to optimise the management of their wealth, while ensuring confidentiality and operational flexibility. This corporate model, known as a Société de Gestion de Patrimoine Familial (SPF), offers a particularly advantageous legal and tax framework. Its structure is designed to meet the needs of wealth planning and asset protection in an increasingly complex and competitive international context.
What is a Holding SPF?
A Société de Gestion de Patrimoine Familial (SPF) is a legal form specifically designed for the management and holding of family assets. An SPF does not allow for the conduct of commercial activities, but focuses exclusively on the management of financial holdings, investments and related activities. This structure allows for the centralization of wealth operations in a single entity, simplifying management and ensuring a personalized approach to the needs of the family or individual.
An SPF is an ideal option for families and individuals who wish to separate wealth activities from day-to-day operations, creating a legal barrier that offers greater security and control.
Advantages of a Holding in Luxembourg
Setting up a holding company in Luxembourg offers a number of distinctive advantages, including:
Flexibility in managing assets:
An SPF allows for the management of different types of holdings and financial instruments, including stocks, bonds, investment funds and other financial assets.
The structure can easily be adapted to the changing needs of the owners.
Preferential tax regime:
Full exemption from income tax and capital gains tax on shareholdings.
No VAT on financial transactions carried out by the SPF.
Exemption from inheritance tax for certain transfers of assets, facilitating estate planning.
Confidentiality and protection of privacy:
Luxembourg regulations guarantee a high level of confidentiality, protecting information relating to the holders of assets and the transactions carried out.
Political, economic and legal stability:
Luxembourg ranks among the most stable jurisdictions in the world, offering a transparent and favourable regulatory environment for international investment.
Its reputation as an international financial hub makes it an excellent choice for wealth management.
Access to a global treaty network:
Luxembourg has an extensive network of international tax treaties that facilitate cross-border investment and reduce the risk of double taxation.
Areas of application
The SPF is particularly suitable for:
Family wealth management:
The SPF allows all of a family's holdings and investments to be consolidated into a single entity, ensuring unitary and strategic management of the assets.
Succession planning:
Thanks to its flexible structure and favorable tax treatment, the SPF is an ideal tool for the orderly and optimized transfer of assets between generations.
Wealth protection:
Setting up a holding company in Luxembourg means creating a legal barrier that protects family assets from external risks, such as litigation or economic uncertainties.
Investment optimization:
The SPF facilitates the diversification and consolidation of international investments, improving the ability to seize opportunities on global markets.
Requirements and limitations
Despite the many advantages, the SPF has some specific restrictions that are important to consider:
Operational limitations:
The SPF cannot carry out any type of commercial or industrial activity.
Direct financing of third parties is prohibited, except for the financing of directly held participations.
Exclusive use:
The SPF is reserved exclusively for natural persons and cannot include corporate entities among its shareholders.
Regulatory compliance:
The SPF must strictly comply with anti-money laundering regulations and tax transparency requirements established by Luxembourg and international laws.
Why choose Luxembourg?
Luxembourg has established itself as one of the most attractive jurisdictions for the establishment of holding companies thanks to a unique combination of factors:
Excellent financial infrastructure:
The country is home to some of the most prestigious financial institutions in the world, offering high-quality services and privileged access to international markets.
Innovative regulations:
Luxembourg is constantly updating its regulatory framework to meet the needs of global families and investors, maintaining a balance between transparency and tax attractiveness.
Strategic location in Europe:
The proximity to major European economic centers makes Luxembourg an ideal choice for those who want to operate on an international scale.
Quality of life and international reputation:
Luxembourg is not only a financial centre, but also a country that offers a high quality of life, security and a multicultural environment.
Conclusions
LaSetting up a holding company in Luxembourg, and in particular a Société de Gestion de Patrimoine Familial, is a strategic choice for those who wish to manage their family assets effectively and safely. This structure guarantees numerous tax advantages, a high level of confidentiality and great operational flexibility, responding to the needs of wealth planning in an international context.
Relying on a team of experts to set up and manage a holding company in Luxembourg allows you to take full advantage of the opportunities offered by this jurisdiction, while ensuring regulatory compliance and a tailor-made approach for each asset need.
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