So I’m a millionaire…now what?

At some point in our lives, we’ve all dreamt of being fabulously rich and asked how we might indulge ourselves with that kind of money. Were such a scenario to occur, however, the best thing to do is keep a cool head. Whether it’s tax, investments, inheritance or spending, there are plenty of things to consider and preferably discuss with experts if you don’t want your new-found wealth to be a flash in the pan. Here’s a starting point.

Being a millionaire is actually something of an abstract concept. What does it actually mean? There’s a big difference between €2 million and €50 million, particularly in a country like Luxembourg, where it will cost you more than €1 million on average to buy a house in the capital.

In other words, if you live in Luxembourg and inherit €2 million, you will still need to be prudent. Such an amount can enable you to build an estate, make investments and indulge in a few luxury items, but it won’t be life-changing, and in all likelihood it will not free you and your family completely from want for the next three generations.

If your business earns you several million euros every year or you have won €60 million in the EuroMillions lottery, it’s an entirely different story. Just imagine, for the purposes of this article, that this is the case, with the proviso that it is always sensible to ask the right questions, irrespective of the sums involved.

First, be aware that being a millionaire in Luxembourg is not exactly an exclusive club. According to a survey by consultancy Capgemini, the country had around 43,600 millionaires – people with net wealth exceeding €1 million, not counting their main residence – in 2025, almost one in every 15 people. According to a survey by UK real estate and wealth management consultancy Knight Frank, in 2020 there were as many as 404 ultra-high net worth individuals (with net assets of more than $30 million).

Becoming a multimillionaire overnight can be difficult to deal with while maintaining mental stability.

Beware of the shock factor

There’s a reason why operators of big lotteries offer psychological services to their winners. Becoming a multimillionaire overnight can be difficult to deal with while maintaining mental stability. If you can suddenly buy anything your heart desires, life may seem relatively meaningless and without motivation.

There are always stories in the media about jackpot winners who fritter away their entire windfall fortune. Having a bucketload of money but no life plan can be a dangerous combination. But things may be different if you have acquired your wealth through hard work, or if you use it to fund a new personal or professional project.

Work and satisfaction

Once your jackpot win has been confirmed, one of your first thoughts is likely to be: “Great! I won’t have to work anymore!” Now that you’re rich, work becomes a choice rather than a necessity. But before you hand in your notice, take a moment to consider what is really important to you.

If pursuing a career is no longer necessarily important from a financial perspective, it could still be from a psychological standpoint in terms of your mental health. Work not only helps to keep you occupied and gives your life structure, it can also prevent social isolation. After all, no matter how generous you are, you can’t always take all your friends and family along on your travels. Not everyone will be able to participate in your new lifestyle. In addition, there’s a strong chance that you won’t want to sit around at leisure all day.

What your new-found wealth should enable you to do is engage in things that make you happy. You’re in a privileged position to be able to work for pleasure, so make the most of it. Why not work part-time, retrain or help others by working for a charity, for example? Take some time to think it over. Have you had a business idea that you’ve never had the time to explore further? Now could be the time to throw yourself into it.

Wealth tax on individuals was abolished by Luxembourg for both resident and non-resident individuals in 2006

Tax

Unfortunately, tax is something you will need to think about. If you are a Luxembourg national or resident in the country, you should be aware that wealth tax on individuals was abolished by Luxembourg for both resident and non-resident individuals in 2006.

Certain companies are also exempt; a net worth tax that remains in force applies only to opaque companies, which include public limited (société anonyme, or SA) and private limited liability (société à responsabilité limitée, or SARL) companies. Where your wealth comes from is your business alone. However, tax on real estate assets is separate, and you should be particularly careful if some of your income comes from abroad.

When it comes to tax, you should leave nothing to chance. Always get expert advice, and find out more on Guichet.lu.

Establishing short-term and long-term budgets

You might be a millionaire, but you still need to think about your outgoings. Establishing a framework and marker points will prevent you from frittering away your fortune. Above all, setting a monthly budget will enable you to maintain visibility of your money and set limits, even if you feel these are merely notional. Ask your financial adviser to help draw up a roadmap for day-to-day spending as well as your long-term ambitions.

You may very prefer to leave your money in traditional bank accounts rather than put it at excessive risk. After all, you may now have so much money that even a low interest rate will earn you quite a lot.

lot. Otherwise, ask an expert adviser for help in investing your money to ensure the highest possible return. They will be able to offer you a range of different solutions to meet your needs. Ask them to help you project how your wealth will evolve.

Ask your bank to help you project how your wealth will evolve.

Whether it’s property, life insurance, the stock market or investment funds, there is no shortage of ways to invest your money. There are pros and cons to investing in the stock market or real estate, which will be down to your judgement. For equities and bonds, and other financial investments, decisions can be delegated to external experts through discretionary management.

You can also make money from things you enjoy by investing in certain types of asset. Art immediately springs to mind, and there is also wine or certain luxury items such as watches and prestigious cars.

Estate planning

However difficult it may be, the day will come when we all must think carefully about inheritance, regardless of the size of our estate, in order to avoid family arguments in the future as well as to protect and develop your assets for future generations.

This is particularly important if you have become a millionaire. It would be a pity if your descendants did not manage to profit from your wealth, or worse, if they were to squabble over your legacy. Whether it’s real estate, financial or tangible assets, your new-found wealth will almost certainly provide you with a substantial estate, which you will need to dispose of thoughtfully.

Talk to a wealth adviser, a notary or your bank adviser – all experts who can provide you with impartial advice and guide you through the procedures you will need to put in place.

While becoming a millionaire will be great in some ways, it should not prevent you from remaining vigilant and asking yourself a few fundamental questions about your assets and their future. It’s the best mindset if you find yourself with a vast fortune, at least if you want to protect it. And whether or not you are a millionaire, always remember the old adage: although it probably makes life a little easier, “money can’t buy happiness”.