Luxembourg is the euro area's largest investment fund domicile and a hub for private banking, cross-border e-money and payment institutions. Many international groups use a Luxembourg licence as their EU passporting base, supervised by the CSSF with the ECB for banks.
Risk flagStandard
FATFNot listed
EU AML high-risk listNot listed
EU tax listNot listed
Licence regimes5
CurrencyEUR
S&P ratingAAA
Next electiondue by 2028
Luxembourg is not on the FATF grey or black lists (plenary of 19 June 2026); as an EU Member State it is outside the scope of the EU high-risk third-country list (Delegated Reg. 2016/1675, consolidated 29 January 2026) and the EU tax list (Annex I, updated 17 February 2026). Checked 7 October 2026.
Luc Frieden (Christian Social People's Party (CSV))
Governing parties
Christian Social People's Party (CSV), Democratic Party (DP)
Last election
Legislative election, 8 October 2023
Next election
Legislative election, due by 2028
Legislature
Chamber of Deputies (60 seats, unicameral)
Legal system
Civil law
Economy and finance
Population
687k (2025)
GDP
USD 101.1bn (2025)
GDP per person
USD 148,247 (2025)
Currency
Euro (EUR), euro (floating, managed by the ECB as part of the Eurosystem)
Central bank
Banque centrale du Luxembourg (part of the Eurosystem)
Credit rating
S&P AAA (stable) · Moody's Aaa (stable) · Fitch AAA (stable) (as of February 2026)
A financial centre economy with Europe's largest investment fund industry, a large international banking sector and a growing role in cross-border insurance, supervised by the CSSF.
Bank
Credit institution authorisation
Minimum capitalUSD 9.7m
TimelineCSSF states a 12-month legal deadline for licensing decisions; CRD art. 15 sets 6 months from a complete file
AuthorityECB on proposal of the CSSF
EUR 8.7 million subscribed and fully paid-up share capital (LFS art. 8), above the EU floor of EUR 5 million
Law
Law of 5 April 1993 on the financial sector, arts. 2 and 8 (capital base); Regulation (EU) No 1024/2013 (SSM) art. 14
Fees
CSSF fees are set by the Grand-ducal Regulation of 23 December 2022; amount not stated on the authorisation page
Passporting
Yes: EU passport under CRD (Arts. 33 to 39) for branches and cross-border services
Key requirements
Central administration and registered office in Luxembourg (Circular CSSF 12/552 on central administration, governance and risk management)
Application filed through the ECB IMAS portal after preliminary discussions with the CSSF banking department
Fit and proper management body and suitable qualifying shareholders
Crypto-asset service provider (CASP) authorisation under MiCA
Minimum capitalUSD 56k
TimelineMiCA Art. 63: 25 working days to check completeness, then 40 working days to decide on a complete application (clock can be suspended for information requests)
AuthorityCSSF
MiCA Art. 67 and Annex IV: EUR 50,000 (class 1: order execution, placing, transfer services, reception and transmission, advice, portfolio management), EUR 125,000 (class 2: adds custody and administration, and exchange for funds or other crypto-assets), EUR 150,000 (class 3: adds operating a trading platform); or one quarter of prior-year fixed overheads if higher
Law
Regulation (EU) 2023/1114 (MiCA), arts. 59 to 63; Luxembourg law designating the CSSF as competent authority
Passporting
Yes: MiCA authorisation can be passported across the EU/EEA by notification (MiCA Art. 65)
Key requirements
Registered office in the Member State where at least part of the services are provided, place of effective management in the EU and at least one director resident in the EU (MiCA Art. 59(2))
Fit and proper management body and suitable qualifying shareholders
Safeguarding and segregation of client crypto-assets and funds, complaints handling, conflicts of interest policy
AML/CFT framework and compliance with the Transfer of Funds Regulation (EU) 2023/1113 travel rule
Preliminary dialogue with the CSSF encouraged before filing; detailed business plan and wallet and transaction flow diagrams
TimelineDecision notified within 6 months of a complete application; final deadline 12 months, silence equals refusal
AuthorityCSSF
CSSF: EUR 75,000 for firms not holding client money or securities and EUR 150,000 for firms holding them; IFD art. 9 sets EUR 750,000 for dealing on own account or firm-commitment underwriting
Law
Law of 5 April 1993 on the financial sector, arts. 13 to 24-9; Regulation (EU) 2019/2033 (IFR)
Passporting
Yes: MiFID II passport (Arts. 34 and 35) for services and branches
Key requirements
Subscribed and fully paid-up capital evidenced at authorisation
Ongoing own funds and liquid assets under the IFR
Central administration in Luxembourg and fit and proper management
Commission de Surveillance du Secteur Financier (CSSF) · websiteBanks, E-money institutions, Payment service providers, Investment firms, Virtual asset service providers (VASPs), Funds
European Central Bank (Single Supervisory Mechanism) (ECB) · websiteBanks
Ministry of Justice (gaming authorisations under the Law of 20 April 1977) (MJ) · websiteOnline gaming
MiCA: Luxembourg applied an 18-month transitional period for existing virtual asset service providers, which ended on 1 July 2026; since then crypto services require a MiCA authorisation. Online gaming: there is no licensing regime for online casino or remote gaming. The Law of 20 April 1977 prohibits the operation of games of chance except authorised casinos, and sports betting requires prior authorisation of the Minister of Justice; a 2026 bill to amend the 1977 law was filed but its content was not verified here. Luxembourg is also a leading centre for investment funds (UCITS and AIFs) supervised by the CSSF.
General information
About Luxembourg
Natural Earth boundaries. Map is indicative.
Status
Sovereign state
Capital
Luxembourg
Area
2,586 km²
Official languages
Luxembourgish, French, German
Time zone
UTC+01:00 (UTC+02:00 in summer)
Main exports
financial services (banking and investment funds)
iron and steel products
gas turbines
plastic products
rubber tyres
Main export partners
Germany
France
Belgium
Netherlands
Italy
Sources for the country information(8)
Country information checked 9 October 2026. Licensing data updated 7 October 2026. Information only, not legal advice; requirements change. Regulatory notice.
