Foreign investors doing business in Luxembourg 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. 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.
| Quick Facts | |
|---|---|
| Availability of fiduciary services in Luxembourg (YES/NO) | Yes, fiduciary services are used frequently in Luxembourg. |
|
Definition of fiduciaries |
Fiduciaries are representatives in charge of acting on behalf of clients and in their best interest. |
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Who can provide fiduciary services in Luxembourg? |
– natural persons, – organizations or specialized companies, – law firms |
| Availability of fiduciary services for natural persons (YES/NO) | Yes |
| Types of services available for natural persons |
People can rely on fiduciaries to represent them in civil law matters, such as inheritance, sale, and acquisition of various assets. |
| Availability of fiduciary services for companies (YES/NO) |
Yes, companies can also use the services of fiduciaries in Luxembourg. |
| Types of services available for corporate clients |
Corporate clients usually rely on fiduciaries for trustee services and legal representation in various matters. |
| Can foreign natural persons and companies hire fiduciaries in Luxembourg? (YES/NO) |
Yes, both categories of clients can do it. |
| Are domiciliation services part of the fiduciary solutions available in Luxembourg? (YESNO) |
Yes |
| Are nominee services considered fiduciary services in Luxembourg? (YES/NO) | Yes, this is a service often employed by foreign clients. |
| Types of nominee solutions available in the Grand Duchy |
– nominee director, – nominee shareholder |
| How can a fiduciary be hired in Luxembourg? |
The fiduciary agreement is the basis of rendering such services. |
| Particularities of Luxembourg fiduciary services |
In Luxembourg, fiduciary services are often used in the financial and investment funds sectors. |
| Authority in charge of the supervision of fiduciaries (if available) |
Luxembourg has created the Register of Trusts and Fiduciary Contracts, with which such agreements must be submitted. |
| Fiduciary services provided by our lawyers in Luxembourg | Our lawyers can offer legal fiduciary services related to representation in civil law cases, trust creation, real estate acquisition, etc. |
Fiduciary services provided by our lawyers in Luxembourg
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.
There are various services that can be offered by a fiduciary in Luxembourg and our lawyers can assist with the following:
- trustee services which are quite popular in Luxembourg – one of the most appealing estate planning locations in Europe;
- legal fiduciary services which are provided by our lawyers in Luxembourg for various operations;
- financial fiduciary services which consist of representation in financial matters before the authorities;
- domiciliation agent which implies acting on behalf of a company or person in need of such services;
- nominee services which also consist of 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 that 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 the 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 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 in Luxembourg, 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.
The fiduciary agreement in Luxembourg
To appoint a fiduciary in Luxembourg the two parties must enter the agreement. This is usually a signed document that provides for representation of the client in matters related to the object of the contract. Through it, the contracting party appoints an external agent to take on one or more obligations. The agent must also accept these obligations, as established in the fiduciary agreement.
Such contracts usually contain:
- the details of the parties;
- the assets/rights that are the object of the contract;
- the rights and obligations of the fiduciary;
- instructions related to the administration of the assets or actions the fiduciary can take on behalf of the client;
- the start and end date of the agreement.
Depending on the case, other clauses can also be stipulated in a fiduciary agreement.
Here is also an infographic on this topic:
As a particularity of fiduciary contracts in Luxembourg, you should know that these are usually employed in relations between financial institutions and investors in the investment funds sectors. In most cases, the fiduciaries are:
- investment management companies;
- asset managers;
- securitization companies;
- insurance companies;
- pension funds;
- international companies in the financial field with operations in Luxembourg.
Should you need assistance in drafting or verifying such a document, you can rely on our Luxembourg lawyers.
Fiduciary services associated with starting a business in Luxembourg
One of the most frequent cases in which fiduciary services are employed is related to opening a business in Luxembourg. Our law firm can represent local and foreign investors in relation to 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 questions about the fiduciary services provided by our Luxembourg law firm, feel free to ask us.
Trustee services offered by a fiduciary in Luxembourg
The creation of trusts is widely spread in Luxembourg, and many foreigners choose 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 decisions with respect to the administration of the estate, within 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.
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 directors.
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 Register of Trusts and Fiduciary Contracts in Luxembourg
The Grand Duchy has created the Register of Trusts and Fiduciary Contracts as trustees and fiduciaries have the legal obligation of filing information about the beneficial owners of trusts and details about the agreements they enter.
The Register is kept by the Registration Duties, Estates and VAT Authority. The information filed by users must be accurate and updated every time a change occurs.
The following details must be submitted with the Registrar:
- the name of the fiduciary;
- the registration number of the fiduciary agent, when applicable;
- the date of creation of the fiduciary agreement or trust;
- identification information about the beneficial owner;
- details about the ownership of the majority of shares in a company or another legal entity entered into the fiduciary contract or passed to trust beneficiaries, where applicable.
Both natural persons and companies have the legal obligations to comply with the Register’s requirements. Our lawyers in Luxembourg can assist in respecting these obligations.
The most important duties of Luxembourg fiduciaries
There are three important duties or obligations a fiduciary has:
- of care;
- of loyalty;
- 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.
A 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 to 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. Here is also a video on this subject:
The business environment in Luxembourg
Luxembourg is one of the most important business destinations in Europe for foreign investors, according to the latest data:
- the economy is expected to grow by 2.3% in 2025;
- for 2026, projections indicate a 2.2% growth;
- inflation is expected to lower to 2.4% in 2025 and to 1.8% in 2026.
Please note that our legal services also expand to other areas. One of our most sought solutions is associated with immigration to Luxembourg.
If you need fiduciary services for starting a business in Luxembourg, please contact us.