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Business & Investment

Why Luxembourg?

One simple question to which there are many convincing answers  ! Luxembourg is much more than just a financial centre. It is a breeding ground for innovation and technology with a skilled multilingual labour force and - as European capital - in close proximity to institutions of the European Union. In short, it's your prime business location  !

Over the years Luxembourg has emerged as a sound hub for finance, logistics, ICT and automotive components. Located in the heart of Europe, Luxembourg is the ideal gateway to the European market with over 500 million consumers. The nation has one of the best locations in Europe with the continent's three top industrialised countries as its neighbours i.e. Germany, France and Belgium. Thanks to this strategic location, 80% of the European Union’s GDP can be serviced in a radius of 700 km.

No wonder Luxembourg is an attractive place for European headquarters. Beside the world-leading home-grown champions ArcelorMittal, RTL Group and SES, many other varied businesses from all over the world  are here, too. These range from the internet telephony leader Skype which has its global HQ in Luxembourg, with car components firm Delphi, online retailer Amazon and glass maker Guardian using the Grand Duchy as their European base.

Economic highlights
  • An open, diversified, stable economy
  • Top GDP performance
  • Sound macroeconomic fundamentals
  • State-of-the-art infrastructures
  • Excellent connectivity to markets in the EU and worldwide
  • Commercial neutrality
  • Central location within reach of 80 percent of total EU market in less than a day
A rewarding tax climate for business and employees

Luxembourg ranks 15th in the world and 3rd in the EU in terms of the “ease of paying taxes” in a PwC report based on the average tax liabilities and the time required to file tax returns. The “Paying Taxes 2010” study by the World Bank and PwC details the tax rates, focusing on how taxes are applied and the kinds of deductions available. On average, annual corporate tax returns can be completed in Luxembourg in 59 hours. The report also calculates a “Total Tax Rate” which takes all business taxes and compares this to pre-tax profits. By this measure, Luxembourg is ranked the lowest in the EU with a ratio of 20.9% compared to 44.9% in Germany, 57.3% in Belgium and 65.8% in France. Read more here  ...


Source: PWC, Paying Taxes 2010
Distance from capital to
  • France: 10 km (Paris 350 km)
  • Germany: 20 km (Frankfurt 275 km)
  • Belgium: 15 km (Brussels 200 km)
  • And just over one hour by plane to: London, Milan, Zurich, Munich, Amsterdam, Paris, Frankfurt, Vienna, Prague




Luxembourg: a skilled multilingual labour force

A melting pot of cultures and nationalities

  • 40% foreigners
  • 350,000 wage earners
  • 65% foreign labour force
  • 41.5% of total employment = cross-border commuters

Luxembourg & neighbouring regions

  • availability of 5 million experienced and qualified labour force