Luxembourg ranked third-largest international financial hub in Europe

Published in July 2026, the international financial centres index evaluates the size and growth of financial markets across 65 economies. Unlike perception-based rankings, this index measures the hard market value of financial activity and clearly distinguishes between domestic business and cross-border international flows.

The United States and the United Kingdom lead the world by a wide margin. Hong Kong, Germany, and Singapore round out the top five, with Luxembourg following closely in sixth place. France, China, Canada, and the Netherlands complete the top ten.

Several other European centres feature in the top 20, including Ireland and Switzerland just outside the top ten, followed by Spain, Sweden, Italy, and Belgium.

The world’s top 20 international financial centres

Source: The New Financial international financial centres index

A highly international financial centre

The report highlights that approximately half of all financial activity in Luxembourg is international. While the US is the largest international financial centre in the world, cross-border flows play a proportionally larger role in economies like the UK, Hong Kong, and Luxembourg. In contrast, international activity accounts for only a quarter of all financial flows in the US.

The index notes that Luxembourg is:

• The number one recipient of foreign direct investment in financial services.
• The second-largest hub worldwide for investment funds.
• The third-largest exporter of financial services.

The report also points out, however, that Luxembourg 'has a very small market,' ranking 39^th for domestic financial activity, a more modest standing.

A top-rated business environment

Alongside the market-activity rankings, New Financial also assessed the wider business environment for financial markets based on 15 business metrics measuring economic, financial, regulatory and tax attractiveness. Luxembourg came out on top of that assessment, just behind Switzerland, for having the most attractive environment for financial markets among the economies studied.

A decade of growth

Global international financial activity grew by 17% in real terms between 2015 and 2025. Over this decade, Luxembourg’s international activity grew by 36%. It maintained a steady position, ranking sixth internationally in both years and holding steady in its domestic rankings (42^nd and 37^th respectively), underscoring its enduring strength as a leading global financial hub.