Overview of Luxembourg Economy – This page summarizes Doing Business 2015 data for Luxembourg. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages.

This economy profile presents the Doing Business indicators for Sweden. To allow useful comparison, it also provides data for other selected economies (comparator economies) for each indicator. The data in this report are current as of June
1, 2014 (except for the paying taxes indicators, which cover the period January–December 2013).

Economic growth in 2016 and 2017 will remain anchored around 3%, supported by the strengthening cyclical position of the euro area and rebounding activity in the financial sector.

For more than two decades, the Luxembourg economy has consistently performed at the highest levels, with strong growth, high international trade surplus, low unemployment and low inflation in a stable, innovative environment for business and consumers alike.

Luxembourg’s success can be attributed to government policies aimed at developing a business-friendly environment and diversifying the economy.

This site provides a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Luxembourg.

Information on company formation/incorporation/setting up in Luxembourg

A description of the business organization alternatives in Luxembourg

The most popular type chosen by foreign investors who want to set up company in Luxembourg is the limited liability company. 

The Corporate Tax Rate in Luxembourg stands at 29.22 percent. Corporate Tax Rate in Luxembourg averaged 33.11 percent from 1993 until 2015, reaching an all time high of 40.29 percent in 1995 and a record low of 28.60 percent in 2009.

Luxembourg taxes its corporate residents on their worldwide income and non-residents only on Luxembourg-source income.

The Personal Income Tax Rate in Luxembourg stands at 43.60 percent. Personal Income Tax Rate in Luxembourg averaged 43.01 percent from 1995 until 2014, reaching an all time high of 51.30 percent in 1996 and a record low of 39 percent in 2002. Personal Income Tax Rate in Luxembourg is reported by the Administration des Contributions Directs.

Individual income tax is levied on the worldwide income of individuals residing in Luxembourg, as well as on Luxembourg-source income of non-residents.

The Sales Tax Rate in Luxembourg stands at 17 percent. Sales Tax Rate in Luxembourg averaged 15.13 percent from 2000 until 2015, reaching an all time high of 17 percent in 2015 and a record low of 15 percent in 2001. Sales Tax Rate in Luxembourg is reported by the Administration des Contributions Directes.

Visa information for tourists, students and business

Whether or not you need a visa to enter Luxembourg 

 If you’re travelling in Luxembourg, here’s a guide to using Luxembourgtransport, including information on trains, buses and buying tickets

Luxembourg City is small enough that you can get almost anywhere you need to go on foot, or on bicycle if you so choose. But it’s good to know that the extremely efficient bus system is there if you need it. 

A listing of telecom companies in Luxembourg

Established in 1998, Telecom Luxembourg Private Operator is the first private global operator of the Grand Duchy of Luxembourg. 

Employers are required to verify that each foreign employee has temporary work authorization or a residence permit authorizing work before the employment start date. 

This site provides a detailed summary of some of the labor regulations that would apply to local entrepreneurs wishing to hire workers, organize working schedules, or make workers redundant for economic reasons in Luxembourg. 

The law provides for a working time of 40 hours per week and eight hours per day. Time spent travelling to or from work is not included.  The working day may not exceed 10 hours. 

Unemployment insurance is mandatory for all employees in Luxembourg, all taxpayers contribute to the unemployment insurance programme through an income tax surcharge.

Information on unemployment benefits, amounts, and special allowances for job seekers in Luxembourg

The dos and don’ts of business etiquette in Luxembourg

Cost of living information includes price indices for rent, food, utilities, transportation, restaurants, clothing and more

Cost of living expenses

Luxembourg ranks as the world´s top city for personal safety and security, according to a quality-of-life survey by Mercer Human Resource Consulting.

The Luxembourg constitution allows the state to organise education. This means most schools are public and tuitions do not have to be paid. There are, however, some private schools that follow a similar programme.

In the Grand Duchy school attendance is compulsory between the ages of 4 and 16 years. Compulsory schooling comprises eleven years of full-time attendance (two years of pre-school education plus nine years in primary and secondary education).

Schedule of National holidays and observances

Public holidays in 2015 and 2016

See “Etiquette and Customs in Luxembourg’ on this site

Luxemburg has a temperate maritime influenced climate with cool summers and moderate winters. Since the country is small there is little variation in climate from region to region. Rainfall is distributed throughout the year with a dryer period from April to September; Luxemburg has an average precipitation about 800 mm.

Nestling behind the barrier of the towering Ardennes mountains Luxembourg is protected from the cold North Sea winds and therefore has a temperate climate.

See “Safety and Security” on this site

Demographic information includes population, quality of life, health, sports, technology, energy and the environment

Features map and brief descriptions of the geography, people, government, economy, communications, transportation, military and transnational issues

While Luxembourg has had a trade deficit since the 1980s, the strength of the financial sector has meant that the Grand Duchy maintains a surplus in earnings.

Import and export regulations from Luxembourg customs

A comprehensive guide to export regulations and procedures

This site provides information on Luxembourg’s participation in the WTO. Luxembourg has been a WTO member since 1 January 1995 and  a member of GATT since 1 January 1948. It is a member State of the European Union (more info). All EU member States are WTO members, as is the EU (until 30 November 2009 known officially in the WTO as the European Communities for legal reasons) in its own right.

The majority of people live in the south of the country, known as the Gutland. In this region, 25 percent of the people (including most expats) live in Luxembourg or the surrounding area. The center of the city is the most expensive, with prices receding the farther you go toward the suburbs. With the excellent transportation options and small distances to be traveled, commuting is a popular option.

Finding accommodation in Luxembourg can be somewhat of a challenge depending on where you want to live and your budget, 

A travel guide to a number of cities in Luxembourg

Expert picks for your Luxembourg City vacation, including hotels, restaurants, entertainment, shopping, top attraction