Why Invest in Luxembourg

Luxembourg offers a favorable climate to foreign investment, remaining the most promising location for business investment in Europe. Investment opportunities are high in biotechnology and health technology, e-commerce or telecommunications, not to mention banking and insurance activities. Many international firms decide to locate European headquarters or holding companies in Luxembourg as a result of the country's openness to foreign cultures, the high standard of life and consumer purchasing power, together with the highly-qualified workforce. Approximately 55% of Luxembourg residents and over 60% of the workforce are composed of foreigners from EU countries (Italy, Portugal) and especially from neighboring countries, out of which 150,000 cross the border daily from Belgium, France and Germany to work in Luxembourg.

Economic and political stability 

In spite of the financial crisis, Luxembourg keeps its fiscal stability and strength in productivity. Luxembourg is also a popular center for corporate finance, with many multinational groups establishing their head offices in the country. This success can be attributed to an outward-looking mentality, which is augmented by the multilingual, multicultural workforce.

Infrastructure and telecommunications

With its first-class infrastructures and telecommunication networks, as well as a culture of trust and security reflected by an appropriate legal framework, Luxembourg plays an important role in e-commerce and broadcasting. Moreover, Luxembourg airport is the fifth largest air cargo hub in Europe. Luxembourg offers efficient railway connections to the ports of the North Sea, such as Antwerp, Zeebrugge, Amsterdam, Rotterdam and Hamburg. In addition, train in Luxembourg links the country to Southern Europe.

Taxes and laws

Luxembourg has an efficient tax system and it has agreements and taxation treaties with different countries. Recent abolition of withholding tax on dividends paid by a Luxembourg entity to a shareholder located in a foreign jurisdiction is another incentive for foreign investors. Besides, the VAT rate of 15% is the lowest in Europe, making Luxembourg a strong point of attraction on the international investments map. The major laws affecting incoming foreign investment are regularly updated. There are no limits on foreign ownership or control. On average, a company can expect to be registered within six months of application, especially with the support of the Luxembourg Chamber of Commerce, which requires all commercial enterprises to become members. 

BridgeWest offers assistance for setting up a company in Luxembourg, including virtual office and other related services.