Tax advisory services for Chinese investors

The Grand Duchy of Luxembourg is becoming increasingly well-known in the Chinese financial sector. Luxembourg is now the  second-largest investment Location for Chinese Investors after Hong Kong.

At the beginning of August 2017 the China Everbright Bank was authorized by the Luxembourg Financial Services Commission (CSSF) to get a banking licence for Luxembourg. Thus, China Everbright Bank is now already the seventh Chinese credit institution which is domiciled in Luxembourg after the other Chinese banks (Bank of China, ICBC, China Construction Bank, Bank of Communication, China Merchants Bank and the Agricultural Bank of China).

In addition to the fact that Luxembourg is a stable and (secure) European country, the advantages for Chinese investors for a Luxembourg holding company are that the Grand Duchy of Luxembourg has the capacity to offer Chinese investors the same services and benefits as other financial centers such as London. The Grand Duchy of Luxembourg is attractive to Chinese investors because it is a gate to get in to Europe.

There are also tax advantages for Chinese investors both for the so-called “inbound” case, ie. Chinese investors are investing in European countries such as Germany and Luxembourg to China as well as for the so-called “outbound” case. Chinese investors are investing from China / Hong Kong via Luxembourg to Germany or other European countries. The inclusion of Luxembourg as a holding company offers the Chinese investors (tax) advantages.

We support and advise our Chinese clients on the establishment of holding structures in Luxembourg. By working with various cooperation partners, we are able to offer tailor-made solutions for our Chinese customers. For more details, see the attached presentation.