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Fiduciary Services in Luxembourg

Fiduciary Services in Luxembourg

Luxembourg is one of the most appealing investment destinations in Europe and foreign investors doing business here can appoint fiduciaries who can handle specific operations on their behalf. The role of a fiduciary in Luxembourg can be entrusted to a person, however, there are also companies and law firms that can represent local and foreign investors and other natural persons in need of such services.

The fiduciary will be appointed based on a contract and the services will be provided in accordance with the conditions stipulated in the respective agreement.

Below, we invite you to read about the fiduciary services you can obtain in Luxembourg. Our Luxembourg law firm offers various fiduciary services, so if you need us, do not hesitate to ask for support.

Fiduciary services provided by our lawyers in Luxembourg

There are various services that can be provided by a fiduciary in Luxembourg and our lawyers can assist with the following:

  1. trustee services which are quite popular in Luxembourg – one of the most appealing estate planning locations in Europe;
  2. legal fiduciary services which are provided by our lawyers in Luxembourg for various operations;
  3. financial fiduciary services which consist in representation in financial matters before the authorities;
  4. domiciliation agent which imply acting on behalf of a company or person in need of such services;
  5. nominee services which also consist in acting in representing clients’ interests.

All fiduciary services in Luxembourg are provided in full confidence, as our lawyers will act in the best interest of clients and by respecting the legislation of this country.

What to consider when appointing a fiduciary in Luxembourg

As mentioned earlier, the fiduciary can be a natural person or a company which provides such a service. There are many companies offering such services in Luxembourg, however, when appointing a fiduciary, the client needs to consider various aspects.

The fiduciary will have both duties and powers over assets or rights of the client. This is why when appointing a fiduciary in Luxembourg, a person must conclude a contract in which all the terms and conditions of the services obtained are clearly stated.

Among the duties a fiduciary will have, we can mention the obligation of acting in the best interest of the client and respecting all the requirements he or she is entrusted with. In order to perform these duties, the fiduciary will be given access to confidential information and/or assets which will give him or her certain powers. This is why, when appointing a fiduciary or asking for fiduciary services, a serious verification is required.

Our attorneys in Luxembourg have represented many natural persons and companies over the years and our services rely on complete confidence and respect towards our clients. We can also support those who want to create trusts in Luxembourg in order to protect their assets.

Fiduciary services associated with starting a business in Luxembourg

One of the most frequent cases in which the need for fiduciary services is related to opening a business in Luxembourg. Our law firm can represent local and foreign investors in the relation with the Trade Register, tax authorities and other institutions when it comes to company incorporation. We can also act as domiciliation agents, thus easing and completing the registration procedure in a short period of time.

We can also help with the creation of investment funds in Luxembourg, as this is one of the most important economic sectors of the Grand Duchy.

If you have any question about the fiduciary services provided by our Luxembourg law firm, feel free to ask any question.

Trustee services offered by a fiduciary in Luxembourg

The creation of trusts is widely spread in Luxembourg, many foreigners choosing this country for estate planning purposes. This is also where the services of a Luxembourg fiduciary are quite common.

A fiduciary can act as a trustee in charge of the following:

  • management of assets held in the name of the trust;
  • making decision with respect to the administration of the estate, in the limits imposed by the settlor;
  • representation of the settlor and beneficiary in various relations;

The trustee may also be referred to as the estate’s executor under the estate legislation.

It should be noted that the beneficiary is the owner of any estate left to him/her, which is why the trustee must act in the beneficiary’s best interests. The relationship between the trustee and beneficiary is very important when it comes to estate planning, which is why the appointment of such an officer should be exercised with care.

Our lawyers in Luxembourg can offer trustee services by acting as fiduciaries to Luxembourg and foreign nationals interested in setting up trusts.

Fiduciary services for companies in Luxembourg

Apart from offering business registration solutions, a fiduciary in Luxembourg can continue his or her work for the respective enterprise also after incorporation. In most cases, large companies use such services.

In such situations, the fiduciary has the role to act in the best interest of the shareholders and company, to report to all parties involved in the management of the business and to comply with the law and internal regulations of the respective entity.

Apart from this, it is also common for company directors and board members to have a fiduciary duty to the shareholders. Corporate managers may be regarded as fiduciaries for investors if they are part of a corporation’s board of directors or as trustees for depositors if they are a bank’s director.

Feel free to ask our Luxembourg lawyers about the duties and obligations of fiduciaries.

How to appoint a fiduciary in Luxembourg

When it comes to foreign citizens or investors seeking to appoint fiduciaries in Luxembourg, the first step should be a thorough verification of the selected person or company. Then, the terms of the contract should be discussed, and the agreement signed. It should be noted that in certain cases, a power of attorney needs to be granted to the fiduciary for representation.

The most important duties of Luxembourg fiduciaries

There are 3 important duties or obligations a fiduciary has:

  • the duty of care;
  • the duty of loyalty;
  • the duty to act in the best interest of the client.

Decision-making processes that have an impact on a company or private client’s future are subject to duty of care which must be exercised by the fiduciary. He or she has a responsibility to thoroughly research all potential actions and how they might affect the client.

fiduciary in Luxembourg also has a duty of loyalty to a corporation or private individual, and it is forbidden to support the positions of other parties in the detriment of the former. The interests of the client must always come first in the fiduciary’s professional activities.

The fiduciary must also act in good faith by putting the needs of the clients first. This is why when choosing such a representative, it is recommended to use specialized services that are available in Luxembourg. 

The business environment in Luxembourg

Luxembourg is one of the most important business destinations in Europe for foreign investors, according to data gathered by the Organization for Economic Co-operation and Development (OECD):

  • the country’s Gross Domestic Product (GDP) is expected to register a growth of 0.8% in 2023, after an increase of 1.6% in 2022;
  • however, the economy is projected to grow by 2% in 2024;
  • the growth is expected to be driven by private consumption in 2023 and 2024;
  • net exports and investments are also considered to boost Luxembourg’s economy in 2024.

If you need fiduciary services for starting a business in Luxembourg, please contact us.