close
Share with your friends

Doing business in Luxembourg

Questions? You’d better call Jacques.

Advice for everything you need to know about doing business in Luxembourg—from Jacques, our resident expert.

Luxembourg on your mind? Well, you’re not alone. The number of companies registered in Luxembourg has been growing at quite a rate. In fact, the government has many initiatives in place to welcome businesses of all sizes. From startups to large corporations, I guarantee there’s a place for your firm here.

If you’re considering relocating your business to Luxembourg but have gotten lost in the administration of it all, I am here to help you make sense of it. So, stop your scrolling and ask me your questions directly.

Stability

Stability

AAA rating confirmed by S&P, Moody’s and Fitch

Economy

Economy

Highly open (OECD Economic Surveys)

Financial Center

Financial center

2nd in the EU, 12th worldwide (Global Financial Centers Index 28)

Why choose Luxembourg to do business

Businesses tell me that these factors are particularly important in their decision to relocate to Luxembourg. 

Select a factor below to see how Luxembourg is leading the way.

  • Stability ›
  • Tax and legal ›
  • Talent and people ›
  • Innovation ›
  • Infrastructure ›

When it comes to stability, Luxembourg:

  1. has a AAA rating confirmed by S&P, Moody’s and Fitch
  2. has maintained a AAA rating during the pandemic
  3. is ranked in the top 3 for political stability and safety by the World Economic Forum

When it comes to tax, Luxembourg:

  1. has competitive corporate tax rates
  2. offers a range of tax incentives to domestic and international businesses
  3. has a top VAT rate of 17%, the lowest in the EU

When it comes to talent and people, Luxembourg:

  1. is ranked 3rd in the IMD World Talent Ranking
  2. is ranked top 10 in the Global Talent Competitiveness Index
  3. is ranked in to the global top 20 for expatriate quality of life by Internations
  4. has a range of tax incentives to domestic and international individuals

When it comes to innovation, Luxembourg:

  1. is ranked a top 20 innovative economy in the Global Innovation Index
  2. is an innovation leader, according to the European Innovation Scoreboard
  3. tops the rankings for attractive research systems, according to the European Innovation Scoreboard
  4. is home to 40% of all Tier IV data centers in Europe

When it comes to infrastructure, Luxembourg:

  1. has made all public transportation free since 1 March 2020
  2. is ranked 3rd in the EU for connectivity
  3. has the most reliable electricity grid in Europe
  4. scored 83.6 for infrastructure quality in the FM Global resilience index

Frequently asked questions about business in Luxembourg

Here are the questions that we are asked most often about business in Luxembourg.

  • How long does it take to set up a company in Luxembourg?

    It takes around a week to get a company set up. You’ll need to make sure that you have all the information required, as well as a Luxembourg bank account. Once this is done, you can book an appointment with the notary to kick off proceedings.

  • How expensive is it to set up and maintain a business in Luxembourg?

    The cost of setting up a business can be as little as €4,000, depending on the company type. Maintenance, on the other hand, will set you back roughly €15,000 a year for domiciliation, accounting, tax compliance, minimal corporate secretarial services and a director.

    The cost of maintaining your company will be higher than €15,000 if your business requires office space, further staff members, a business licence or help with monthly obligations like VAT returns and interim financial statements.

  • Is Luxembourg competitive in terms of tax and social security?

    Yes, Luxembourg is competitive for both tax and social security. This is especially true of social security as contributions are capped for employers, employees, and the self-employed. For 2021, social security contributions are paid on annual remuneration of up to €132,115.80. Anything that you earn over this threshold is not subject to social security.

    Read more about tax and social security in our Luxembourg income tax guide 2020.

Contact Jacques

Jacques Bortuzzo

Director
KPMG Luxembourg
+352 22 51 51 5506
E-mail