Luxembourg enjoys an excellent international reputation as one of the founder members of the European Union and home to the European Court of Justice (ECJ). It however suffers somewhat from its reputation as an overly bureaucratic country with an unduly complex and esoteric tax system. Luxembourg retains its historic position as the financial services capital of Europe and a centre of excellence for the fund industry despite some recent concerns about the adequacy of its consumer protection provisions. Luxembourg offers bearer shares companies and whilst most countries have outlawed the practice is one of the world’s few remaining countries to continue to permit their use. The future of this practise is uncertain and some question its benefits given the adoption by almost all countries of anti-money laundering (AML) and anti-terrorism (PFOT) procedures prohibiting the use of such companies. Luxembourg, along with some other European countries including Malta, the UK and Cyprus, enjoy a beneficial holding regime making it a popular choice for holding companies. Luxembourg foundations are also widely used for tax planning secondary to their philanthropic use. Luxembourg also offers generous incentives for the registration of Intellectual Property (IP) including an 80% tax exemption.