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Luxembourg

Luxembourg: Business Overview

About Luxembourg

Luxembourg is a small, landlocked country in Western Europe, bordered by Belgium, France, and Germany. With a population of around 634,000 (2020), it is known for its strong economy and strategic location. Luxembourg is a global financial hub with a business-friendly environment, multilingual workforce (Luxembourgish, French, German, and English), and advanced infrastructure.

Major Cities and Financial Hubs

Luxembourg City, the capital and largest city, serves as a major financial center renowned for its banking, finance, and investment funds sectors, attracting numerous international institutions. Its robust financial infrastructure and favorable regulatory environment make it a prime location for global financial services. Esch-sur-Alzette, the second largest city, is known for its historical steel industry and is rapidly emerging as a hub for technology and innovation, supported by initiatives to foster research and development.

Infrastructure and Connectivity

Luxembourg boasts excellent infrastructure and connectivity, making it an ideal hub for businesses. The country has a well-developed transport network, including modern highways, extensive rail connections, and Luxembourg Airport, which offers numerous international flights. The logistics sector is particularly strong, supported by state-of-the-art facilities and strategic location in the heart of Europe. Additionally, Luxembourg is a leader in digital infrastructure, providing high-speed internet and advanced communication networks, further enhancing its attractiveness for international business operations.

Economic and International Relations

Luxembourg's diverse, highly developed economy excels in financial services, logistics, and technology. As a global financial hub, it attracts international banks and investment funds. Its strategic location, political stability, and efficient governance support strong global trade relations. As a founding EU member and active participant in NATO and the UN, Luxembourg offers a conducive environment for international business.

Language and Legal System

Luxembourg is a multilingual country with three official languages: Luxembourgish, French, and German. This linguistic diversity facilitates international business and communication. The legal system is based on civil law, incorporating aspects of both German and French legal traditions. As a member of the European Union, Luxembourg also adheres to EU regulations and directives, providing a stable and predictable legal framework for businesses. English is widely used in business and finance, further enhancing the country's appeal to international investors and companies.

Business Environment and Regulations

Luxembourg offers a highly favorable business environment characterized by political stability, efficient governance, and a transparent regulatory framework. The country ranks high in ease of doing business, with streamlined procedures for company formation and operations. Luxembourg's regulatory environment is business-friendly, providing strong protection for intellectual property and ensuring compliance with EU standards. Additionally, the government actively supports innovation and entrepreneurship through various incentives and grants, making it an attractive destination for both established companies and startups.

How Can We Help You Establish and Operate in Luxembourg

Jürgen Astor is your trusted partner for establishing and operating your business in Luxembourg. With our deep expertise in the region and comprehensive service offerings, we simplify the process of setting up and managing your business in Luxembourg.

Our Services Include:

  • Business Setup in Luxembourg

  • Corporate Services in Luxembourg

  • Accounting and Bookkeeping Services in Luxembourg

  • TAX and VAT Advisory in the Luxembourg

  • HR and Payroll Management in Luxembourg

  • IT and Digital Solutions in Luxembourg

  • Legal and Compliance in Luxembourg

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Investments Opportunities
and Key Sectors:

  • Financial Services: Luxembourg is a global leader in the financial sector, excelling in investment funds, private banking, and insurance. It hosts numerous financial institutions, benefiting from a favorable regulatory environment that supports financial stability and growth.

  • Technology and Innovation: The government actively supports innovation through various initiatives and funding programs, making Luxembourg an attractive destination for tech startups. The focus areas include fintech, cybersecurity, and data management, bolstered by a supportive ecosystem and advanced digital infrastructure.

  • Logistics and E-commerce: Luxembourg serves as a strategic logistics hub in Europe, offering top-notch facilities and connectivity. The e-commerce sector is expanding rapidly, driven by favorable regulations and robust infrastructure, making it a prime location for logistics and online retail operations.

  • Green Technologies: Committed to sustainable development, Luxembourg provides ample opportunities in renewable energy, environmental technologies, and sustainable finance. The country promotes green initiatives and offers incentives for businesses investing in sustainability.

Tax Advantages
and Incentives:

  • Luxembourg offers numerous tax advantages and incentives, making it an attractive destination for businesses. The country has a competitive corporate tax rate of 24.94%, with various deductions and allowances available to reduce the effective tax burden.

  • An extensive network of Double Taxation Treaties (DTTs) with over 80 countries minimizes tax liabilities for international businesses and prevents double taxation. This network enhances its appeal as a hub for multinational companies.

  • Significant tax incentives for research and development (R&D) activities, including tax credits and grants, foster innovation and technological advancement. Additionally, the Value Added Tax (VAT) rate is one of the lowest in the European Union at 17%, with reduced rates applicable to specific goods and services.

  • Tax exemptions on capital gains and dividends under certain conditions further enhance the attractiveness for holding companies and investors. These favorable tax policies, combined with a stable regulatory environment, make Luxembourg a prime location for establishing and growing businesses.

Why Choose Us?

Expertise in Luxembourgish Market: Extensive knowledge of the Luxembourgish market and  regulatory environment, providing you with expert guidance.

Efficiency in Business Setup: We are streamlining the business setup process in Luxembourgish reducing time and effort, so you can focus on growing your business.

Customised Solutions: We offer tailored solutions to meet the unique needs of your business, ensuring optimal results.

Continuous Support: From initial setup to ongoing operations, we provide continuous support to help your business thrive in Luxembourg.

Frequently Asked Questions:

How easy is it to start a business in Luxembourg?

What are the main benefits of setting up a company in Luxembourg?

What is the corporate tax rate in Luxembourg?

Are there any special incentives for foreign investors?

What are the main sectors for investment in Luxembourg?

Is Luxembourg a good location for company headquarters?

Are there specific programs for startups in Luxembourg?

What kind of support does the Luxembourg government provide to businesses?

Start Your Journey

We’re here to assist you. Click the button below to complete our contact form, and our team will get back to you promptly.

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