Luxembourg might be a small country but its vibrant economy and recognized quality of life with a high sense of safety have made it an extraordinary country.
A decent geographical location, political and social vitality, and business incentives are just some of the motives why lots of investors choose to open a business in Luxembourg.
Its economic stability, in addition to the facts outlined below, is more reasons why businesses choose Luxembourg.
Strong economic performance
Thanks to the dominant political will to modify the economy and its typically favorable business climate, Luxembourg has over the years become a desirable location for companies wanting to invest in the development of their activities.
Luxembourg has a strong and diversified economy that has been growing rapidly over the years, continuously outperforming the EU average. It is also one of the three countries with the highest GDP per capita in the world.
Luxembourg ranks as the world’s 12th most active economy, in specific due to its global trade, domestic economy, employment, public finance, and business legislation.
Open and internationalized economy
Because of its size and small domestic market, companies are encouraged to think globally in most of their decision-making procedures. This characteristic and the existence of countless multinational workers make Luxembourg one of the most receptive economies in the world.
Investor-friendly ecosystem
Luxembourg has been a well-known fund industry center for decades with a reputation for captivating large cross-border investment platforms and reliable prominent fund and asset managers. The long-term stability of the country and ecosystem, in addition to a strong regulatory framework, and an adaptable company law regime are among the key features for facilitating this.
Performing labor market and Economic strength
One main aspect of the country’s attraction is the strength of its monetary sector. It is the dominating financial center in Europe and the 12th in the world, accommodating 128 banks of 27 different nationalities. Additionally, it has the 2nd highest labor productivity in the world as its unemployment level is relatively lower than the EU average.
Attractive business environment
Luxembourg’s economic policies encourage investments and private enterprise. The Luxembourg Government facilitates innovation and investments in specific business fields through a series of incentives for activities such as media, environmental and health technologies, and others.
Financial support in Luxembourg for businesses can be granted for unique projects and to medium and small-sized companies. The Luxembourg Government also gives capital grants, also other long-term loans are available in Luxembourg.
Political and social stability
Luxembourg is famous for having a decent economic environment, a stable political framework, and a government that is open to social exchange. It has one of the lowest degrees of public debt in Europe. And until now, Luxembourg has maintained its triple-A rating issued by the major rating agencies, which speculate that the country is capable of resisting the economic fallout of the health crisis.
If you want to register your business in Luxembourg, contact your Damalion expert now.
