Luxembourg
A STRATEGIC LOCATION
The Grand Duchy of Luxembourg is one of the founding members of the European Union as well as the seat of several European institutions such as the European Court of Justice, the European Parliament, the European Investment Bank and the European Investment Fund, which maintains a reasonable level of political and social stability.
Luxembourg is an internationally renowned economic and financial center in the heart of Europe.
A VERY FAVORABLE TAX SYSTEM
The tax system attracts companies wishing to set up their headquarters in Luxembourg.
Company tax outside the capital is 29.22%, whereas in Luxembourg city it goes up to a maximum of 28%.
According to the report recently published by the World Bank, the Grand Duchy of Luxembourg has the lowest rate of company tax in the European Union.
Luxembourg also ranks 15th out of 189 countries and shows the best performance in Europe regarding fiscal duties and time spent filling in tax returns.
Luxembourg’s economic policies contribute to maintaining a stable and suitable environment for investments. It has one of the lowest tax rates in the Euro Zone: 3%, 6%, 12% and 15%. The VAT rate, at 17%, is also very low.
This is why several world renowned industry groups are established in Luxembourg, including Arcelor Mittal, Goodyear, Exxonmobile, Ferrero, Microsoft, Skype or Itunes (Apple) etc….
Luxembourg ranks second worldwide behind New York for its range of Investment Funds.
Foreign income taxation in Luxembourg is simplified due to Double Tax Treaties, designed to avoid double taxation. Where there is no treaty between countries, the law foresees a foreign tax credit.
Luxembourg’s state finance is also very stable. Just like taxes, public debt is very low: in 2013 it was only 18% of the GDP, which is one of the lowest rates in the European Union.
A MULTI-CULTURAL ENVIRONMENT
Citizens coming from more than 170 nations currently live in Luxembourg, which is frequently classified as one of the safest capital cities in the world, and people have moved here, from every corner of the globe, to experience the quality of life, the school system and the country’s vast employment choices.
A COMPANY FRIENDLY REGULATORY FRAMEWORK
The country’s legislation is geared towards helping companies: cutting-edge legal and regulatory framework, permanent dialogue between the government, and the private sector, adapting to the economic environment. Extreme flexibility of public administrative institutions are the key words in a constantly changing market.
As Luxembourg is a very attractive country on numerous counts, it appeals to both a prestige international clientele and well-known multinationals wishing to establish their headquarters there.