When foreign investors open subsidiaries of international companies in other countries, they benefit from the parent-subsidiary regime that applies to income, capital gains and shareholdings. The purpose of this regime is to avoid double taxation. Because subsidiaries are opened as any other legal entity in Luxembourg, they still have to observe the taxation system for companies in Luxembourg.
A business owner in Luxembourg who wants to hire personnel and needs help can declare a job vacancy at the National Employment Administration. This can be done online or by filling a form (declaration of vacant position). Employers should always keep in mind that Luxembourg has a special employment legislation for certain categories of workers.
Luxembourg is an important business destination and many people who work in the country or come for various business activities commute between the small country and its neighboring regions. Luxembourg Findel Airport is the main airport in Luxembourg and the only international one in the country. Last year the airport registered a record number of passengers that passes through its gates. This increase can be partially attributed to new airlines that expanded their business in Luxembourg.
Luxembourg is taking over the presidency of the European Union this summer and the Economy Minister has already declared that he intends to make small and medium sized enterprises (SMEs) a priority. It is not the first time when the small country shows its appreciation for the importance of SMEs. The Grand Duchy has already started to outline some of the important aspects that will be a priority during its six month presidency.