General Information

The Grand Duchy of Luxembourg is a highly open country offering numerous advantages, including political and social stability, a favourable legal environment, an attractive tax regime, a financial sector well-equipped to welcome foreign capital, high-quality infrastructure, as well as a highly-qualified, multilingual population with a very high quality of life.

Numerous branches of multinational businesses set up shop there to establish a starting point for developing business in Europe. Other businesses specialised in innovation and R&D are attracted by the financial support offered to them, similar to certain SMEs that benefit from subsidiaries.

To foster future growth, the Luxembourg government is focusing on Fintechs, but also on the diversification of its economy, a process which has been underway for several years now, in order to reduce its dependence on the financial sector (focussing instead, in particular, on the aerospace, logistics, chemical, ICT and environmental technology sectors). Furthermore, in the context of the COVID-19 crisis, the government has shown its willingness to invest in the ecological transition of the economy. More specifically, the measures will encourage sustainable energy renovation of housing, the transition to soft and sustainable mobility and investment in renewable energy.

France is Luxembourg’s 3rd-largest supplier.

Furthermore, it is important to know that networking is often very important for conducting business in Luxembourg.

Means of Payment & Banking Specificities

Swift and SEPA transfers are very frequently used.

Transactions can be guaranteed, if required, by an insurance credit or bank guarantee. SBLC is not used very frequently.