FATCA: Luxembourg chooses Model I
In the context of its FATCA negotiations with the United States of America, Luxembourg has chosen the Model I which will provide automatic exchange of information between the Luxembourg and American fiscal authorities on bank accounts held in Luxembourg by citizens and residents of the United States.
This decision will put Luxembourg’s relations with the US in line with the declaration of 10 April 2013 by which Luxembourg announced that it will introduce, on 1 January 2015 and within the scope of the 2003 EU Savings Directive, the automatic exchange of information within the European Union.
Luxembourg wishes to see the same conditions apply to all competing financial centers and to see the automatic exchange of information accepted as the international standard. It has therefore agreed on 14 May 2013 to grant the European Commission a mandate to negotiate with Switzerland, Liechtenstein, Andorra, Monaco and San Marino.