The new changes to the road transportation legislation in Luxembourg will ease the work of business owners who manage transport and shipping companies. Cross-border transportation among the Benelux countries (Luxembourg, Belgium and the Netherlands) will now be easier thanks to an agreement signed by the three countries.
A recent study regarding the emerging trends in real estate for the year 2014 indicates that the real estate market in Luxembourg will show signs of growth and foreign investors are beginning to turn their attention once more to various properties, secondary properties or properties located in regional cities.
Next year will bring new changes for small and medium sized companies in Luxembourg. The changes were proposed by entrepreneurs and representatives of the small and medium sized enterprises in Luxembourg and the modifications include various issues, such as promotion, communication strategies and legislative changes.
Luxembourg’s new budget plans may bring important changes and increases. The main possible changes are an increased VAT rate and additional contributions for tax payers regarding education programmes. While Luxembourg’s Finance Minister has not made any official announcements, these measures are likely to cause certain changes for investors in Luxembourg.
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.
On July 2014, one of the major rating agencies, Fitch, affirmed that Luxembourg has a stable outlook and rated the Grand Duchy of Luxembourg with ”AAA”. This is the highest possible rating assigned to bonds of an issuer and it reflects a high credit quality, creditworthiness and easiness to meet the necessary financial commitments.
Luxembourg was ranked second in the 2014 Environmental Performance Index. The overall rank marks the Grand Duchy in second place out of 178 countries and this state has an overall score of 83.29% out of 100. First place was occupied by Switzerland.
Luxembourg's Parliament has agreed to allow the Government to issue its first Islamic bond. This would make Luxembourg the second European country after Great Britain to do so.
At a seminar held in Singapore in July 2014, the participants recognized similarities between Luxembourg and Singapore and they launched the idea of a greater strategic cooperation between the two countries in the field of international finance.