Advantages of setting up your company in Luxembourg
Luxembourg is often chosen when setting up a company. Its particular geography is not the only reason to consider when setting up a business in Luxembourg.
If you are considering setting up your business in Luxembourg, you will consider these 8 advantages:
Political and social stability under a parliamentary monarchy
– A high standard of living where Luxembourg ranks first in terms of GDP per capita even before Switzerland, the United States, Japan and the Emirates. In addition, Luxembourg also has a high growth and low unemployment rate (around 5%).
– A population of 590,667 inhabitants and 47.7% of its inhabitants are of foreign nationality and speak different languages such as French, German, Luxembourgish, English, Dutch…
– Perfect for data centres because of its geographical location and low electricity costs. It is the ideal location for technology companies, video game companies and e-commerce companies.
– Exemplary fiscal and social competitiveness:
Weekly working hours: 40
The social security rate for employees is 12.45% and for employers is 12.16%. The combined social security rates vary between 25.72% and 28.25%, which is one of the lowest rates in Europe.
– The corporate tax rate is 15% of the operating result for income below €175,000 and 17% for income above €200,000
– The basic municipal business tax is 3%.
– VAT (value added tax.):
Super discounted rate: 3% for food (including restaurants except for alcohol) and some products and services such as shoes or children’s clothes, transport of persons.
Reduced rate: 8% for hairdressing, certain works of art, flower sales…
Intermediate: 14% for printed advertisements and made-to-measure clothing;
Normal: 17% for all other goods and services
Luxembourg is often chosen when setting up a company. Its particular geography is not the only reason to consider when setting up a business in Luxembourg. If you are considering setting up your business in Luxembourg, you will consider these 8 advantages: Political and social stability under a parliamentary monarchy - A high standard of living where Luxembourg ranks first ...
Advantages of setting up your company in Luxembourg
Luxembourg is often chosen when setting up a company. Its particular geography is not the only reason to consider when setting up a business in Luxembourg.
If you are considering setting up your business in Luxembourg, you will consider these 8 advantages:
Political and social stability under a parliamentary monarchy
– A high standard of living where Luxembourg ranks first in terms of GDP per capita even before Switzerland, the United States, Japan and the Emirates. In addition, Luxembourg also has a high growth and low unemployment rate (around 5%).
– A population of 590,667 inhabitants and 47.7% of its inhabitants are of foreign nationality and speak different languages such as French, German, Luxembourgish, English, Dutch…
– Perfect for data centres because of its geographical location and low electricity costs. It is the ideal location for technology companies, video game companies and e-commerce companies.
– Exemplary fiscal and social competitiveness:
Weekly working hours: 40
The social security rate for employees is 12.45% and for employers is 12.16%. The combined social security rates vary between 25.72% and 28.25%, which is one of the lowest rates in Europe.
– The corporate tax rate is 15% of the operating result for income below €175,000 and 17% for income above €200,000
– The basic municipal business tax is 3%.
– VAT (value added tax.):
Super discounted rate: 3% for food (including restaurants except for alcohol) and some products and services such as shoes or children’s clothes, transport of persons.
Reduced rate: 8% for hairdressing, certain works of art, flower sales…
Intermediate: 14% for printed advertisements and made-to-measure clothing;
Normal: 17% for all other goods and services
