Expanding into
Luxembourg
Global expansion is a step to make for any business, regardless of what you wish to achieve. The opportunities that can come with an expansion can be both incredibly exciting as well as intimidating and confusing, especially when you consider all of the registration procedures that needs to be done and documentation required.


Get the Support You Need
Expanding to countries such as Luxembourg – which is characterized by a multicultural and multilingual workforce, multifaceted employment and tax laws, a robust infrastructure network, and leading sectors in finance, agriculture, creative industries, automotives, and information technology – can bring both excitement to the possibilities, but also significant stress to ensuring the entity with the country’s rigorous legal structures and laws.
Ensuring compliance without the sufficient knowledge of the country’s laws also adds to the stress of getting your new entity off the ground and ready to test new markets. Going at it without the proper support can increase the costs, time and risks involved.
Each new markets bring new challenges, and these can be worked through more efficiently and cost-effectively with the support of an International Professional Employer Organization (PEO) such as Bradford Jacobs, especially through our Employer of Record (EOR) framework.
This can be best utilized when businesses are just beginning their expansion process and require more information before committing to incorporating an entity and fully establishing themselves in that market.
Hiring Staff
in Luxembourg
Luxembourg’s economy is characterized by its fiscal system and a high degree of international openness. The financial sector is the main driving force behind the Grand Duchy’s economy, representing about one-third of the country’s GDP, making the country vulnerable to external shocks.
Luxembourg is the second-wealthiest country in the world in terms of GDP per capita (the first in the EU – PPP) and has one of the highest current account surpluses as a share of GDP in the eurozone. It generally maintains a healthy budgetary position, nevertheless, the measures taken to address the pandemic, partially offset by an increase in revenues, caused the general government balance to slip into a deficit of -1% of GDP in 2021.
Although Luxembourg in tourist literature is aptly called the “Green Heart of Europe”, its pastoral land coexists with a highly industrialized and export-intensive area. Luxembourg’s economy is quite similar to Germany’s. Luxembourg enjoys a degree of economic prosperity very rare among industrialized democracies.
The economy of Luxembourg is largely dependent on the banking, steel, and industrial sectors. Luxembourgers enjoy the highest per capita gross domestic product in the world (CIA 2018 est.).
The government has been aiming at economic diversification for a few years and has been encouraging the development of sectors such as communication and information technologies, logistics, e-commerce, and biotechnologies. The number of foreign citizens in the labor market outweighs the number of Luxembourgish nationals.
Luxembourg is a founding member of the European Union, OECD, United Nations, NATO, and Benelux. The city of Luxembourg, which is the country’s capital and largest city, is the seat of several institutions and agencies of the EU.
Luxembourg served on the United Nations Security Council for the years 2013 and 2014, which was a first in the country’s history. As of 2020, Luxembourg citizens had visa-free or visa-on-arrival access to 187 countries and territories, ranking the Luxembourgish passport fifth in the world, tied with Denmark and Spain.
SMEs in Luxembourg play an important role in the non-financial business economy, especially in terms of their contribution to total value added, which at 67.7% is substantially higher than the EU average of 56.4%.
The SME contribution of 67.0% to employment is exactly in line with the EU average, however, indicating that SME productivity, measured as value added per person employed, is substantially higher in Luxembourg than in the EU as a whole.
SMEs in Luxembourg also employ more people, an average of 5.5 compared with the EU average of 3.9. SMEs in Luxembourg’s non-financial business economy have generated solid growth in recent years, with SME value added rising by 14.4% and employment by 11.8% in 2014-2018. In 2017-2018, overall SME growth has been strong, with growth in value added of 8.7% and in employment of 3.3%.
Social Security Number/Card
Luxembourg National Identification Number (LNIDN)
VAT Number
Hiring Staff
in Luxembourg
Luxembourg’s economy is characterized by its fiscal system and a high degree of international openness. The financial sector is the main driving force behind the Grand Duchy’s economy, representing about one-third of the country’s GDP, making the country vulnerable to external shocks.
Luxembourg is the second-wealthiest country in the world in terms of GDP per capita (the first in the EU – PPP) and has one of the highest current account surpluses as a share of GDP in the eurozone. It generally maintains a healthy budgetary position, nevertheless, the measures taken to address the pandemic, partially offset by an increase in revenues, caused the general government balance to slip into a deficit of -1% of GDP in 2021.
Although Luxembourg in tourist literature is aptly called the “Green Heart of Europe”, its pastoral land coexists with a highly industrialized and export-intensive area. Luxembourg’s economy is quite similar to Germany’s. Luxembourg enjoys a degree of economic prosperity very rare among industrialized democracies.
The economy of Luxembourg is largely dependent on the banking, steel, and industrial sectors. Luxembourgers enjoy the highest per capita gross domestic product in the world (CIA 2018 est.).
The government has been aiming at economic diversification for a few years and has been encouraging the development of sectors such as communication and information technologies, logistics, e-commerce, and biotechnologies. The number of foreign citizens in the labor market outweighs the number of Luxembourgish nationals.
Luxembourg is a founding member of the European Union, OECD, United Nations, NATO, and Benelux. The city of Luxembourg, which is the country’s capital and largest city, is the seat of several institutions and agencies of the EU.
Luxembourg served on the United Nations Security Council for the years 2013 and 2014, which was a first in the country’s history. As of 2020, Luxembourg citizens had visa-free or visa-on-arrival access to 187 countries and territories, ranking the Luxembourgish passport fifth in the world, tied with Denmark and Spain.
SMEs in Luxembourg play an important role in the non-financial business economy, especially in terms of their contribution to total value added, which at 67.7% is substantially higher than the EU average of 56.4%.
The SME contribution of 67.0% to employment is exactly in line with the EU average, however, indicating that SME productivity, measured as value added per person employed, is substantially higher in Luxembourg than in the EU as a whole.
SMEs in Luxembourg also employ more people, an average of 5.5 compared with the EU average of 3.9. SMEs in Luxembourg’s non-financial business economy have generated solid growth in recent years, with SME value added rising by 14.4% and employment by 11.8% in 2014-2018. In 2017-2018, overall SME growth has been strong, with growth in value added of 8.7% and in employment of 3.3%.
Social Security Number/Card
Luxembourg National Identification Number (LNIDN)
VAT Number
The Main Sectors of the Luxembourg Economy
The country focuses on the following key sectors, which all have a significant impact on the country’s economy:
The Main Sectors of the Luxembourg Economy
The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

Commercial Laws in
Luxembourg
Commercial Laws in
Luxembourg
