What Are the Advantages in Set Up a Business in Luxembourg?
Investors are looking to set up business in Luxembourg mainly due to its geostrategic position in the heartland of Western Europe. Luxembourg’s positional importance has drawn many foreign investors to set up businesses in the country.
Luxembourg is a landlocked state at the centre of Western Europe, it borders Germany, Belgium, and France. Luxembourg earns many plaudits as the gateway to some of Europe’s largest markets. On top of holding a strategically located investment destination, Their government is seeking investors interesting in trying to set up a business in Luxembourg. They have encouraged economic diversification with their strategies and plans. The government stated aims were to build a strong investment environment with tremendous growth potential, stable macroeconomic institutions, diversified business and great market connectivity. All of this is built on a foundation of strong institutional, juridical, and financial frameworks. Moreover, the country is politically and socially stable, which makes it even more attractive to foreign investors.
The four key reasons people are setting up a business in Luxembourg.
As we have mentioned before Luxembourg is very well located in the centre of Europe. It has excellent transport hubs, which allow the easy flow of people and products all across the EU.
They Actively Seek New Businesses
Foreign investors are becoming increasingly confident that Luxembourg is a great destination for a startup or an offshoot of an already established company. The Government is extremely pro-business and has been encouraging foreign investment for years. The government recently released its framework to attract (FDI) Foreign Direct Investors, particularly in the services sector. They have detailed a series of incentives that include, capital investment grants, reduced corporate tax payment programs, funding for equipment and further financial assistance.
Business Setup is Heavily Incentivized
The administration actively provides investment stimuli via low and attractive tax policies, as well as providing many grants and investments. In 2019, they set a corporate tax rate of 15% on businesses that earn revenues of less than 175,000 Euros. For businesses that earn revenues higher than that the corporate tax rate falls somewhere between 16% and 18%. They also have one of the lowest VAT rates in the EU at 17% as of 2016. As well as being an attractive option for tax, Luxembourg has many other incentives for potential investors, such as low and reduced rates that are government-guaranteed, grants to help develop real estate that is to be used for either industrial or commercial purposes, grants of cash for businesses who work in the high-tech sector or research and many more.
High Skill Workforce
One of the main concerns for any business is the availability of skilled staff. Luckily Luxembourg boasts one of the highest standards of education in Europe. It is also an easily accessible and attractive place for any workers to migrate to. This has resulted in the establishment of a highly productive economy.
In conclusion, you should choose set up business in Luxembourg as it has worked hard to establish itself as a service and financial hub in the heart of the EU, it is actively seeking and encouraging foreign investors today and into the future.