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Why is Luxembourg an attractive country for investors?

Updated on Tuesday 07th June 2016

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Many foreign investors choose to open a company in Luxembourg because the country has various business opportunities to offer. Investors are attracted by the stable economy in Luxembourg which offers very good chances for small, medium and large business to develop and grow from year to year. Luxembourg is also a founding member of some of the largest organizations in the world, such as the Organization for Economic Co-operation and Development (OECD) and the World Trade Organization (WTO).

The many business advantages offered by Luxembourg

Luxembourg is a small country with large potential. It has an open and stable economy as well as a good legal framework that encourages foreign investors and allows foreign entrepreneurs to benefit from the same rights as local ones. Its position in Europe is favored by its geographical location but also by its involvement in the founding and functioning of the European Union.

The most important characteristics that make Luxembourg an attractive country for investors are:

  • - a stable economy and good GDP performance;
  • - excellent location in Europe that allows for good connectivity;
  • - multilingual workforce and business environment: there are three recognized languages in the country – Luxembourgish, French and German;
  • - good tax system and legal framework for investments;
  • - good infrastructure: transport, development and ICT structures.;
  • - good quality of life.
 
Our local agents invite you to watch a video about the main benefits enjoyed by foreign investors in Luxembourg:

Business sectors open for foreign investments in Luxembourg

Luxembourg welcomes foreign direct investments and there are a large number of business sectors that are attractive for foreign entrepreneurs:

  • - the financial sector;
  • - shipping and logistics;
  • - automotive and aerospace;
  • - ICT (information and communication technologies) and high-tech;
  • - research and development.

The company incorporation process is easy and it is another reason why investors choose to open a company here. Each type of company needs to apply for a business permit with the General Directorate for SMEs and Entrepreneurship belonging to the Ministry of Economy. Our company formation agents in Luxembourg can help you apply for a regular business permit and for additional specific ones, required for some liberal professions.

After the company has the necessary permits for functioning, it is registered with the Luxembourg Trade and Companies Register. Additional steps are registration with the social security (if hiring employees), renting or purchasing an office space in Luxembourg and registering with the tax authorities.

 FDI in Luxembourg

The 2016 study issued by fDi Magazine places Luxembourg City on the 9th position among European cities of the future and despite the economic uncertainties at macro-economic level, the Grand Duchy remains one of the most attractive European countries for foreign direct investment (FDI). This is partially due to the fact that the Government recently enabled several facilities for FDI. Among these are:

  • -       tax benefits;
  • -       subsidies for purchasing equipment;
  • -       advantageous financing options;
  • -       capital investment deductions;
  • -       the creation of new construction projects in order to rise this sector.

 

If you have decided to open a company in Luxembourg and need qualified assistance during the company incorporation process and afterwards, you can contact our agents in Luxembourg.

 

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Set up an appointment with us at (+352)278 617 15. Alternatively you can incorporate your company without traveling to Luxembourg.
 

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