Luxembourg is home to one of the most stable economies in the EU and, despite its small size, ranks as one of the wealthiest countries in the world in terms of GDP per capita. The transport infrastructure is well developed with direct access to the rest of Europe and North Sea ports. Its status as the home of the European Court of Justice makes it an important EU centre, and Luxembourg is a globally recognized hub for information and communications tech.
As one of the most competitive financial centres in Europe, the banking sector is the driving force behind Luxembourg’s economy, accounting for about one-third of the country’s GDP. The success of the financial industry is thanks to its cross-border financial expertise, range of financial services offered, political stability, and qualified multilingual workforce.
Although Luxembourg has favourable tax treaties with a number of countries and relatively low corporate tax rates, its business tax requirements can be difficult. Companies must face many different taxes each year, which collectively involve c. 55-60 hours annual admin time.
Luxembourg only ranks 72/190 for Ease of Doing Business, so there are issues to be aware of. The incorporation process is long and complicated, with different steps based on specific business activities. That said, in Jan 2021 Luxembourg achieved a new record of over EUR 5 billion in fund assets under management domiciled in the country. It’s definitely one of the most favourable domiciles in Europe, but local knowledge is essential to navigate the lengthy processes and intensive regulations.
AUXADI can become your ideal investment partner in Luxembourg. From our office, located in Luxembourg, we offer a One Stop Shop value added Outsourcing services in the areas of Accounting and Reporting, Tax Compliance, Payroll Management and Representation services, among others.