The Grand Duchy of Luxembourg has an open economy and a welcoming attitude towards foreign direct investments. The country’s economic and political stability (even during the financial crisis) has attracted numerous foreign investors who prefer to bring their own staff when working in Luxembourg. However, intra-corporate transfers can be strenuous, especially for the employee’s family. Luxembourg officials have announced a proposal to ease the work permit conditions for third-country nationals.
The Luxembourg tax law was amended so that corporations in Luxembourg are allowed to determine their taxable income in the currency of their corporate capital, other than Euro. The circular issued by the Luxembourg tax authorities announcing this change provides guidelines on the procedure. This will allow taxpayers to avoid exchange differences between euros and other currencies.
Luxembourg offers many investment opportunities for foreign investors. The number of new banks and bank branches opened in Luxembourg increased last year with approximately 100 new units, compared to 2012. The profits recorded in the banking sector have stabilized during 2013, as revealed by a report published by KPMG Luxembourg.
Luxembourg’s Foreign Affairs Minister, Jean Asselborn, and John Kerry, Secretary of State of the United States of America, examined the economic and trade relationships between the two countries during an official meeting. The two officials focused on the Transatlantic Trade and Investment Partnership (TTIP) and how to overcome certain concerns.