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 Home > Market Coverage > Europe > Luxembourg
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Luxembourg
IFAs who relocate to Luxembourg are likely to be very pleasantly surprised that
this diminutive nation offers a virtual goldmine of opportunities – both in monetary
and non-monetary terms.
Luxembourg is a small landlocked country in Western Europe, bordered by France,
Germany, and Belgium. The world’s only ‘Grand Duchy’ (i.e. one that has a Grand
Duke or Grand Duchess as head of state), Luxembourg is the second-smallest country
in the European Union, larger only than Malta.
The country houses a population of less than a half million people in an area of
about 2,500 square kilometers.
Ruled by a Grand Duke, Luxembourg is a legislative representative democracy. The
nation was a founding member of the European Union, NATO, the United Nations, and
the Western European Union. The country is trilingual; French, German, and Luxembourgish
are official languages. English is also widely spoken there.
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According to significant surveys, the country scores high in the rankings in ‘Quality
of Life’ listings. The surveys included such subjective factors as ‘life-satisfaction’,
as well as objective determinants such as material well-being, health, and political
stability.
Luxembourg’s capital, the city of Luxembourg, ranks as the number one city in the
world for “personal safety”, rating various criteria, including crime, health, education,
and transport. Also, Luxembourg City was listed by the European Union as a leader
of Europe’s cleanest cities.
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Stable, Robust Economy
The economy of Luxembourg is noteworthy for its close links with the rest of Europe,
since the country is not large enough to maintain a self-sustaining domestic market.
Luxembourg’s wealth was initially based on the iron and steel industry, which in
the 1960s accounted for as much as 80% of the total value of exports.
By the late 1900s, however, the nation’s economic dynamism stemmed chiefly from
its involvement in international banking and financial services, and in various
non-commercial activities, including hosting Europe-wide political activities.
Luxembourg's steady, dynamic economy is characterised by reasonable growth, low
inflation, and low unemployment. The industrial sector has become more expansive,
and includes chemicals, rubber, and other products.
The country’s financial sector has undergone tremendous growth during the past decades.
Services, in particular banking, account for the majority of the generated revenue.
The financial sector now accounts for about 28% of Luxembourg’s GDP.
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Highest GDP
Luxembourg maintains markedly close financial ties to Belgium and the Netherlands
and, as an EU member, reaps the rewards of the open European market.
As of 2006, the nation possessed the largest GDP per capita in the world – at US$87,995.
And, in 2007, unemployment was just under 5% of the labour force.
Doing Business in Luxembourg
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Expat investors, employees and others report an extremely long list of incentives
that draw them to Luxembourg as a business locale. Among them:
- Strategic location
- Impartiality
- Security
- Country’s financial health
- Skilled multi-lingual workforce
- Outstanding infrastructure
- Superior IT Framework
- Flexible authorities
- Appealing lifestyle
Enthusiastic expats almost always describe their stay in Luxembourg in the most
superlative terms.
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For further information about Luxembourg we recommend that you visit
http://en.wikipedia.org/wiki/Luxembourg where you will find many useful
links and informative articles to prepare you for your move.
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