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Luxembourg

Luxembourg offers a unique blend of innovation, quality of life, and economic opportunity within the European Union.

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Luxembourg

Sources: DG for Communication

Euro

Sources: DG for Communication

French, German, Luxembourgish

Sources: DG for Communication

0.7M

Sources: Eurostat

Corporate Tax Rate 23.87% (2025)

Includes CIT, solidarity surtax, and municipal tax in Luxembourg City. 2024.

Luxembourg's aggregate corporate tax rate of 23.87% combines federal and local taxes, creating a transparent and highly stable framework at the heart of Europe's financial centre.

R&D Tax Credit 12% (2025)

For Generic projects. 2025.

Luxembourg offers a 12% tax credit on qualifying new investments and an 18% credit for digital or ecological transformation projects. These incentives, effective since 2024, aim to foster business innovation and sustainability.

ESNA SNS#1: Fast Startup Creation Score 84% (2025)

Efficiency of starting a business and administrative support. 2024.

With a high score for startup efficiency, Luxembourg offers an extremely fast and streamlined digital process for entrepreneurs to launch their businesses.

GDP Growth 1.2% (2025)

Annual real GDP growth rate forecast. 2025.

Luxembourg's highly sophisticated, finance-driven economy is projected to see steady growth, reinforcing its position as a global hub for investment and banking.

ESNA SNS#6: Access to Finance Score 89% (2025)

Availability of public and private funding for startups. 2024.

As a leading global financial centre, Luxembourg provides startups with unparalleled access to a deep and diverse pool of venture capital and other funding instruments.

Economic Sentiment Indicator (ESI) 91,5 (2026)

A Structured Framework with Targeted Efficiencies.

While known for its robust regulatory environment, Luxembourg has streamlined many processes, making it particularly easy to trade across borders and resolve insolvency.

€53.90/hr Labour Cost €55.20/hr (2024)

A Reflection of a High-Value Workforce.

Luxembourg's high labour costs are a direct reflection of its highly skilled, multilingual, and exceptionally productive workforce, driving a world-class service economy.

Top Personal Income Tax Rate 42% (2025)

A solidarity surcharge of 7-9% also applies to income tax. 2025.

Luxembourg's progressive personal tax system funds its extensive social security system and high-quality public services, supporting one of the world's highest standards of living.

Euro Health Consumer Index Score 7th (2026)

Overall measure of national health system performance. 2025.

With a top-7 ranking in Europe, Luxembourg offers a world-class healthcare system known for its excellent access, quality of care, and patient outcomes.

Global Cost of Living Rank 13th (2026)

Measures relative costs of goods and services. 2025.

Luxembourg's high living costs are offset by exceptional purchasing power, driven by some of the world's highest salaries. This financial strength, paired with top-ranked quality of life and free public transport, creates a highly attractive environment for residents.

Global Happiness Rank 9th (2024)

Evaluates national wellbeing and overall life satisfaction. 2024.

Ranking in the top 10 happiest nations, Luxembourg's high life satisfaction is driven by its economic prosperity, social support systems, and multicultural environment.

Global Peace Index N/A

Assesses national peacefulness, safety, and security levels. 2024.

Renowned for its political stability and low crime rates, Luxembourg is one of the world's most secure countries, offering a safe and peaceful environment for all.

74.2% Working-Age Employment Rate 74.2% (2024)

Percentage of population aged 20-64 that is employed. 2024.

With a robust employment rate driven by its powerful financial and service sectors, Luxembourg's international labour market offers extensive opportunities.

ESNA SNS#8: Digital First Score 100% (2025)

Measures the digital-by-default availability of key public services. 2024.

Luxembourg is a leader in digital government, offering comprehensive online services that enhance efficiency and accessibility for its international population.

Annual Inflation Rate 2.5% (2025)

Measures the change in consumer prices over time. 2024.

With one of the lowest inflation rates in the Eurozone, Luxembourg's economy provides outstanding price stability, ensuring a secure financial climate for all.

Non-EU citizens need a valid passport and may require a Schengen visa for short stays up to 90 days. For longer visits, a temporary authorisation to stay must be obtained before arrival, followed by a formal residence permit application upon entry.

EU/EEA citizens can enter Luxembourg with a valid ID card or passport. If staying over three months, they must register as a resident with the local municipal administration (commune) within eight days of arriving in the country.

Luxembourg offers a "residence permit for investors" and a self-employment permit, but not a specific startup visa. Entrepreneurs must apply as self-employed, which requires a business permit and proof of sufficient financial resources before arrival.

Luxembourg has embassies and consulates worldwide that offer visa services and assistance to its citizens abroad. A current list of these missions is available on the Ministry of Foreign Affairs website.