How to set up a business in Luxembourg 

Luxembourg is an attractive place to live and offers an excellent work-life balance. Short commutes enable you to maintain a healthy and well-balanced family and social life. Luxembourg City ranks 1st out of 230 cities in terms of safety according to Mercer's Quality of Living Survey, 2019.

All companies need to fill in an operating declaration and a declaration of start of employment to the Joint Social Security Centre, which handles the data, registration of affiliations and collection of contributions for the different insurance funds.

Companies in Luxembourg are subject to corporate tax and have to apply value added tax (VAT) to their products and services. Individuals are taxed based on their personal situation.

Companies that establish a sustainable presence in Luxembourg can draw on several financing and support measures that help them expand their activities, develop innovative concepts and products and strengthen their competitiveness. (Investment aid, Young innovative enterprise measure, R&D and innovation, PHD and Postdoctoral research).

Any third-country national (a person who is not an EEA national – i.e. from an EU Member State, Iceland, Norway and Liechtenstein – or a Swiss Confederation national) planning to stay in Luxembourg for a period exceeding three months (90 days) must apply for a residence permit before entering the territory.

Whatever the size and nature of their business, it is crucial for entrepreneurs to choose a legal form that suits their activity (sole proprietorship or company).

All businesses established in Luxembourg must acquire the necessary governmental permits. Commercial, skilled craft and industrial activities as well as certain liberal professions are subject to a business permit.