International European Investment Licence

Luxembourg is a member country of the EU since January 1, 1958 with its geographic size of 2,586 km², and population number 562,958, as per 2015. Luxembourgers comprise 0.1% of the total EU population. Its capital is Luxembourg and the official languages in Luxembourg are French and German. The Gross Domestic Product (GDP) is €52.112 billion, as per 2015. Luxembourg’s currency is Euro (€) since it became a member of the Eurozone on January 1, 1999. The political system is a parliamentary constitutional monarchy. Luxembourg holds 6 seats in the European Parliament and held the revolving presidency of the Council of the EU 12 times between 1960 and 2015. Luxembourg is a member country of the Schengen Area since March 26, 1995.

Section 19.2 — Institutional Investment & Sovereign Market Profile

Luxembourg stands as a prime global financial hub, positioned in the center of Europe. Operating as a founding member country of the European Union, the Grand Duchy provides direct marketplace channels to the entire Single Market landscape. Governed as a highly stable parliamentary constitutional monarchy with multiple official administrative languages, the nation features exceptional operational advantages, a AAA sovereign credit rating, and comprehensive wealth management ecosystems designed for global commercial enterprises.

Section 19.3 — Citizenship & Residence: Government Programs of the European Union

In accordance with the regulatory frameworks across the 27 EU Member States, Luxembourg maintains precise investment pathways for high-net-worth individuals. These strategic immigration programs grant legal residence permissions to qualified international allocators. Successful applicants secure comprehensive freedoms to live, operate corporate structures, and move without boundaries throughout the Schengen Area registry.

Section 19.4 — Invest in Luxembourg Framework & Sovereign Position

Luxembourg, officially known as the Grand Duchy of Luxembourg, occupies a strategic position in Western Europe, bordered by France, Belgium, and Germany. Despite its landlocked geography, it has transformed its scale into a tremendous commercial advantage, developing into a prime global investment destination. The country offers some of the highest living standards globally, supported by a stable macroeconomic environment, moderate growth rates, low inflation, and exceptionally low unemployment.

Infrastructure and Demographics: Backed by historically rich iron-ore reserves and world-class logistics (rail, road, air, and advanced satellite telecommunications), Luxembourg City serves as a major administrative capital. It hosts key European Union institutions, including the European Investment Bank. The marketplace features a highly diverse, multilingual, and skilled labor pool augmented significantly by a robust cross-border commuter workforce.

Section 19.5 — FDI Volumes & Strategic Transition Sectors

FDI & Growth Tiers: Since 1995, Luxembourg has maintained resilient macroeconomic growth, capturing substantial FDI capital inflows. Notably, inbound direct investment allocations from North American channels alone account for over $1.5 billion, making the country the largest US direct investment destination outside North America.

Strategic Sector Fields: Moving away from its traditional reliance on heavy iron and steel production, Luxembourg has evolved into one of the largest service-oriented, financial, and digital economies in the world. Key sectors offering high expansion potential for foreign entities include:

Inward Policy & State Subsidies: To incentivize inbound capital placements from both small and large enterprises, successive administrations have systematically lowered the standard basic corporate tax rate and abolished capital duties entirely. Foreign corporate networks can utilize targeted sovereign financial help, including non-repayable cash grants, structured credit help, and extensive tax rebate programs.

Section 19.6 — Custom Incentive Programs & Sovereign Assistance

There are also other incentives such as investment tax credits, venture capital investment certificates, regional and national incentives, R&D incentives and even environmental incentives. The government of Luxembourg is so dedicated towards encouraging foreign investment in the country that it offers a custom-made incentive program to international investors and provides an easy access to bureaucrats.

Section 19.7 — Resources & Institutional Promotional Framework

Resources: To encourage foreign investors and to bring huge investment in the country, the government of Luxembourg has set up an agency known as the Board of Economic Development. This agency provides all sorts of support to investors and helps them to analyse and evaluate the investment opportunities that are available in the country. This agency guides investors through every step of the investment process and provides accurate, immediate investment related information relevant to a particular business.

A sustainable economic growth, an investor-friendly government, massive infrastructure and abundant natural resources, all these features really make the country of Luxembourg a nation which is worth investing especially for people who want to establish their base in the Western Europe.

Section 19.8 — Macro-Competitive Ecosystems & Regional headquarters

Luxembourg (aka "Little Switzerland") is a small, landlocked country surrounded by Belgium, France and Germany. Luxembourg is ranked as the European Union's 6th most competitive country, having top GDP performance, an open stable economy, state-of-the-art infrastructure and excellent connectivity to EU markets. Luxembourg is a founding member of the European Union, OECD, United Nations, and NATO. Luxembourg City is the main seat for various European organizations and institutions. The country is very wealthy, stable, featuring a low inflation and high-income economy. Luxembourg is a major centre for banking and finance. Internet companies such as Skype, Amazon and Google have their major regional headquarters in Luxembourg. French and German are widely spoken and the currency is the Euro (€).

Section 19.9 — Economic Investment Residency Framework

International allocators seeking long-term business entry or specialized residence permissions can execute commercial and industrial activities across multiple targeted economic sectors:

Section 19.10 — Intracommunity Taxe sur la Valeur Ajoutée Identification Registry

For compliant cross-border commercial transactions, product logistics, and B2B trade routing within the European Economic Area, commercial entities require a fully verified, valid intra-community Value Added Tax identifier string (Taxe sur la Valeur Ajoutée / TVA intracommunautaire).

If an incorrect or unmapped tax number is provided, operational financial channels will halt under the official Luxembourgish tax administration notice: "TAXE A LA VALEUR AJOUTEE - Le numéro d'identification à la TVA que vous avez indiqué est inexact. Pour les ventes à l'intérieur de la CE, nous avons besoin de votre numéro d'identification à la TVA intracommunautaire. Ce numéro se compose de 8 chiffres. Nous vous serions reconnaissants de bien vouloir vérifier et inscrire le numéro correct dans la case ci-dessous et nous le renvoyer dès que possible. Merci." Immediate corporate review and formal digital submission of the corrected block are mandatory to maintain compliant clearance pipelines within the European Community parameters.

Section 19.11 — Alphanumeric Sequence Rules of the Luxembourgish TVA Identifier

The Registration Duties, Estates and VAT Authority (AED) strictly regulates the sequence formatting and configuration rules of business tax identifiers:

Sovereign Fee & National Fiscal Tariff Matrix

Section 19.14 — Corporate Income Tax (CIT) Systems & Global Surcharges

Corporate tax rates in Luxembourg 17%. The tax rate is CIT rate is 17%.

Luxembourg holding companies must pay a Corporate Income Tax rate (also known as a CIT), which is 21%. Furthermore, companies must pay 4% into the government’s unemployment fund. This means that the total CIT usually costs companies 21.84%. Also, the CIT tax is applied to worldwide income.

Section 19.15 — Value Added Tax (TVA) Classifications

Luxembourg VAT rates: The statutory tax codes of the Grand Duchy separate consumer commodities, domestic services, and cross-border trades across five distinct core rate percentage tiers: