Foreign Portfolio Investment - FPI in Luxembourg

An attractive manner through which investors can open a company in Luxembourg is through the Foreign Portfolio Investment (FPI). The FPI designates a manner through which the businessmen can purchase various financial assets – such as bonds and shares, through which they can invest in a particular jurisdiction. Our team of company formation representatives in Luxembourg can offer in-depth advice on the main characteristics of the FPI. 

 

 

In many ways, the FPI is very similar with foreign direct investments (FDI). However, the FPI does not allow the investor to own the respective assets, as he or she does not have ownership rigths when investing here. However, the entrepreneurs interested in company formation in Luxembourg will be allowed to invest in various types of assets. 

 

For example, the businessmen will be able to invest in stocks, bonds or securities. 

 

One of the main reasons why the entrepreneurs prefer this method of investment refers to the fact that the FPI is a less risky procedure. It can also provide a rapid return on investment. Our team of company formation agents in Luxembourg can offer more details on the FPI. 

 

 

The FPI represents a part of the country’s capital and the index is included on the country’s balance of payments. 

 

The balance of payments represents a tool through which it is provided a clear image of the money flow from one country to the other. 

 

One of the main advantages of FPI in Luxembourg refers to the fact that it offers a high level of liquidity. The financial assets raised through FPI are included in the Luxembourg Stock Exchange. 

 

Investments in Luxembourg through FPI can have a positive effect on the economy of a country and, in Luxembourg, the FPI investments had a total value of $ 100 million and the top FPI investors were represented by American and German citizens.

 

Investors interested in further details on the foreign portfolio investments are invited to contact our team of company registration consultants in Luxembourg.