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A tax haven is a jurisdiction in which taxes are either applied at a low rate or not at all. Luxembourg is a small central European country bordering Belgium, France and Germany. It is renowned for its business-friendly environment and corporate tax regulations, which together allow foreign companies to reduce the amount of tax payable by incorporating within its borders. Approximately 33% of the United States Fortune Top 500 businesses have subsidiary companies in Luxembourg, which offers many options for foreign investment. One of the most well-known legal structures in Luxembourg is the investment fund. Over the last 50 years, around 3500 investment funds were incorporated in Luxembourg.
