Starting a Business in Luxembourg

Luxembourg has a very close relationship to its neighboring countries. This is due to not only the small size of the country, but the ability for countries within the European union to work together so successfully.

One of the most important things that Luxembourg and Belgium tie together is banking. Both countries are very important when it comes to the banking atmosphere in Europe. ING has a main office in Belgium, as well as branches in Luxembourg and many other areas throughout the world. The ability to access and transfer funds easily between the two countries helps businesses make more profit and individuals live easier lives.

Another important economic tie between Luxembourg and its neighboring countries is trade. Many goods and services are shared between the two countries. While it helps that prices for the good are lower, Luxembourg also has some of the lowest VAT taxes on goods in the European Union. Unlike other countries which charge a flat rate of 25% for their VAT tax, Luxembourg often goes as low as 3%, with their highest rate used being around 21%.

Trade between the countries has allowed more businesses to grow stronger, help business be able to compete more easily and even created a new way for many individuals to see towards a brighter future. Thanks to the ability of the two countries to work together, many companies have offices in both countries, as well as transport their goods back and forth to consumers in both Belgium, Luxembourg and The Netherlands.

Another great thing about Luxembourg is that its national capital is also the central head of many agencies of the European Union. Members and employees from near by countries who work for the central government often visit Luxembourg to conduct official government business. This plays into the easy ability to move goods between the three countries, as well as to keep prices on goods as low as possible. Many countries love the high quality products that are being sent to them from countries such as Luxembourg. However, without the unique tax advantages, as well as neighboring countries such as The Netherlands and Belgium, there would be no ability to have these low taxes and easy reciprocal agreements. Do not misunderstand, taxes are still being paid on these goods, and their still is competition, however, the rate at which things work in Luxembourg is much more likely to bring you success than anywhere else in Europe!