Doing Business in Luxembourg
Finding the Right Law Firm
Legal System
Founding member of the European Union in 1957, the Grand Duchy of Luxembourg is a key country at the heart of Europe, where many European institutions are established (Court of Justice of the European Communities, European Investment Bank.).
It has also one of the highest living standards in the world. National currency is the Euro. Luxembourgish law is a statutory and codified law, based on a constitution dated of 1868, and modified several times. The legal system has been influenced by Germany, France and Belgium.
The three official languages are Luxembourgish, French, and German. English is widely spoken as Luxembourg is a country of intense business.
EU law is directly applicable and Luxembourg is a very active member of the E.U.
Foreign Businesses and Investments
As a small country, Luxembourg is a widely open economy. It can be considered now as one of the leading financial places in the world, widely recognize for its high standards of quality and productivity in this sector.
This leadership is the result of many factors including an advantageous legal and fiscal system, the efficiency of the financial sector monitoring, competitive operational costs, and an active struggle against money laundering.
Luxembourg's economy is an open economy favouring foreign investments.
An asset of the Grand Duchy is its low taxation making the country highly competitive.
Contracts and commercial
The EC directive on product liability has been implemented by a law of 1989. Many agreements in Luxembourg involve several countries, therefore. private international law has a major role in the grand Duchy.
Taxation
Luxembourg is one of the European countries with the lowest taxes. According to a survey realized in 2002 by the Organization for Economic Co-operation and Development (OECD), the Grand Duchy of Luxembourg has the lowest taxes rate concerning taxation of individuals and the second lowest concerning companies.
There are many possibilities for tax allowance and no wealth tax exists for individuals.
Since 2004, as a result of the Economic and Financial Affairs European Council (ECOFIIN) dated January 21st 2003, Luxembourg applies withholding tax on income from savings.