Why Luxembourg?

Why Luxembourg?

When it comes to quality of life, Luxembourg ranks among the top 20 countries worldwide. Learn more about what makes the Grand Duchy such an attractive place for individuals and businesses to call home.

AAA sovereign rating

Political stability & healthy public finances

Luxembourg, a constitutional monarchy with a democratically elected government, ranks among the top 10 most politically stable countries globally and is the 15th safest country worldwide. This stability has been crucial in supporting its consistent long-term policy approach.
Luxembourg ranks 20th in the most recent IMD World Competitiveness Yearbook. The ranking reflects to sound public-finance management, business-friendly legislation and a supportive societal framework. It also reflects Luxembourg's strategic focus on creating a conducive environment for business and innovation, essential components of the country’s competitive edge in the global market.
Among EU member states, Luxembourg has one of the lowest government debt-to-GDP ratios, standing at 25.7% at the end of 2023. That is far below the averages of both the euro area (88.6%) and EU (81.7%).

multicultural environment

International orientation

Luxembourg's trilingual foundation – with Luxembourgish, French and German as administrative languages, further enriched by the mandatory inclusion of English in school curricula – underscores the country's international orientation and openness to global engagement. Proficiency in multiple languages facilitates its role as a hub for international trade and investment. This is bolstered by Luxembourg's extensive network of double-tax treaties, which now encompasses over 80 jurisdictions, reinforcing its position as a center for financial transactions and multinational enterprises. The strategic use of language skills and tax agreements reflects Luxembourg's adaptability and strategic positioning in the global cross-border economy.

flexible and attractive legal framework

Advantageous regulatory and tax environment for entrepreneurs

Luxembourg's regulatory framework and tax environment are structured to support entrepreneurs and businesses, offering a competitive edge within the European Union. The country's financial sector, particularly the Professionals of the Financial Sector, benefits from a supportive regulatory framework that includes authorization and licensing procedures, as well as supervision by the Commission de Surveillance du Secteur Financier. Tax incentives for businesses are also a significant draw, with a progressive scale for corporate tax and municipal business tax rates that are considered attractive compared to other EU countries. This balance of favorable conditions and responsible governance makes Luxembourg an appealing destination for entrepreneurial ventures and financial growth.

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first mover advantage

Europe’s largest fund distribution center

Luxembourg's pioneering role in the asset management industry is a testament to its strategic foresight and robust regulatory framework. Over four decades, the country has cultivated a reputation as a premier hub for cross-border fund distribution, attracting a significant portion of the world's leading asset management firms. The Grand Duchy's ability to host a staggering €5.16 trillion in assets under management reflects its appeal as a stable and efficient domicile for investment funds. Moreover, with a commanding 34% market share in European UCITS, Luxembourg demonstrates its capacity to manage a substantial volume of assets, amounting to €12.3 trillion. The country's prominence extends to alternative investments, where it has become a preferred location for private equity, venture capital, hedge funds and real-estate funds, overseeing more than €962 billion in assets.

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