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Glossary

Double-Tax Treaty

A Double-Tax Treaty is an agreement between two or more countries that reduces the amount of tax that an international worker or company must pay, so they do not have to pay tax twice o the same income. Under Double-Tax Treaty, any tax paid in the country of residence will be exempt in the country in which it arises.

Autorisation d’Etablissement

The Autorisation d’Etablissement is a business license given by the Mininstry of Economy in Luxembourg. The main conditions to obtaining the license are professional qualifications, good standing, good character and domicile within a 2.5hr distance from Luxembourg.

CRS (Common Reporting Standard)

The CRS is new international information exchange standard that is being gradually phased in in 2017 and 2018. As a result, most financial institutions (banks) globally will automatically report basic account information to the beneficial owner’s tax domicile country tax authorities.

Beneficiary Owner

The Beneficiary Owner of an account or a company is any identifiable person that holds a participation (whether done directly or not) that gives rise to a share of profits and value.

Offshore Business

An Offshore Business is a business that is registered to take place in a jurisdiction that is physically outside that of the customer and the service provider.

Well-Informed Investor

A well-informed investor is a person who has declared in writing their adhesion to the status of well-informed investor, and
(i) Makes a a minimum of EUR 125,000 investment
(ii) has obtained a statement from a credit institution or from a management company testifying to his expertise, his experience and his knowledge to appraise in an appropriate manner an investment.”

Securitisation

Securitisation is a process turns an asset (or a pool of assets) into a security (bond) that may be effectively used by the business owner/investor (interested party) for a range of purposes, including wealth management and fundraising.

SPV (Special Purpose Vehicle)

An SPV is a company that has been formed to play a “technical” role in a structure or a deal. Usually, these companies are structured to be tax transparent in that they incur a yearly minimal tax.

S à.r.l. (Societe à Responsabilite Limitée)

The S à.r.l. (Societe à Responsabilite Limitee) is a type of company in Luxembourg limited by participations of shareholders. It requires a minimal capital of 12,500 Euros. It can have one or multiple shareholders which are made public.

S.A. (Société Anonyme)

The S.A. (Société Anonyme) is a type of company in Luxembourg limited by shares. It requires a minimal capital of 30000 Euros. It can have one or multiple shareholders which can either be made public or kept in an internal registry.

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