Spanish fund managers shift €12.7B to Luxembourg, assets up 68%

Spanish fund managers are relocating operations to Luxembourg, with managed assets there surging 68% to a record €31.5 billion, reflecting a €12.7 billion net transfer. This continues a trend of regulatory arbitrage and tax optimization within the EU, likely driven by Spain's tax and regulatory environment. The shift may signal capital outflows from Spain, affecting domestic asset management and potentially influencing policy.