Landlocked by Belgium, France and Germany, Luxembourg is a small country at 700km2. But it has one of the most successful economies in the world, proving that size doesn’t always matter. As a founding member of the European Union, the Eurozone and NATO, Luxembourg continuously commits itself to the promotion of both European and global integration, making it an obvious choice for business. As well as Luxembourgish as its official language, French, German and English are also widely spoken, reflecting Luxembourg’s multicultural nature.
Doing business in Luxembourg is a politically safe bet: stability is supported by a culture of consensus, whereby parties coexist while agreeing on broader key issues. Each government maintains a similar line to its predecessors, particularly regarding economic initiatives. This ensures a continuously progressive trajectory, making its economy one of the most reliable and successful worldwide. Indeed, Luxembourg’s motto ‘mir wëlle bleiwe wat mir sinn’ (‘we want to remain what we are’) reflects this strength.
This ‘Green Heart of Europe’ couples a pastoral countryside with highly industrialised and export-extensive centres, with a favourable tax environment and modern infrastructure. While Luxembourg is predominantly reputed for its banking sector, other large industries include steel, telecommunications, tourism and agriculture. Maintaining a good economic freedom score, the Luxembourgish economy actively encourages entrepreneurial activity. Its limited size compels it to have an outward-looking mindset, laying out the welcome mat for foreign investment.
Doing business in Luxembourg is not without risks, though: it’s a time-consuming affair without the correct information and expertise. Tax matters, property registration and securing credit are some of the more challenging aspects of expanding a company into one of Europe’s top business hubs. The World Business Culture website can aid with these challenges and more, while instructing on business culture, investment opportunities, and local laws and regulations.