GENERAL

Status: Constitutional Monarchy
Location: Centrally located in north Western Europe.
Area: 2,586km2
Population: 441,000
Business languages: English although French and German are widely used.
Currency: Luxembourg Franc (LF). 1=100 centimes.
Time zone: GMT +1. GMT +2 from 1 March to 27 September.
Business hours: Mon-Fri 8am to 12noon, 2pm to 6pm
Climate: Temperate.
Average temperatures of 0.7ºc in winter and 17.5ºc in summer.

IMPORTANT CONTACTS

British Embassy
14 Boulevard Roosevelt
L-2450
Luxembourg
Tel: + 352 229864
Fax: + 352 229867

Chamber of Commerce of the Grand Duchy of Luxembourg
7, rue Alcide de Gasperi
L-2981
Luxembourg
Tel: + 352 435853
Fax: + 352 438826

Regulator:
Banque Centrale du Luxembourg
Départment Monnaies, Fiduciares, Immeubles, Sécurités
2 Boulevard Royal
L-2983 Luxembourg
Tel: + 352 47 74-1
Fax: + 352 47 74 4901

EXPAT EMPLOYMENT DETAILS

Excluding Spanish and Portuguese, EU nationals do not require work permits.

COMMUNICATIONS

Frequent international flights and excellent rail, road and sea connections. Sophisticated telecommunications.

POLITICAL AND ECONOMIC STABILITY

The Government encourages diversified financial services, and laws providing attractive tax incentives have been passed to promote the expansion of banks, reinsurance companies, investment funds and holding companies.

Luxembourg is a full member of the UN, IMF, World Bank, EC and NATO and is firmly pro-European. It has one of the highest standards of living and one of the lowest unemployment rates in Europe.

KEY ACTIVITIES

Banking, investment, financial management and insurance.

ADVANTAGES OF LUXEMBOURG

  • Banking secrecy.
  • Free exchange market.
  • Low corporate tax rate with investment funds, holding companies and finance companies receiving tax advantages.
  • Established world finance centre.
  • Incentives available for reinsurance companies.
  • Political and economic stability.
  • No foreign exchange controls.
  • Excellent communications.
  • At the heart of the EU with a number of EU institutions.
  • Diversification of the economy is encouraged by the authorities via incentives.

The content of this factfile is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances

This factfile also appears in the 'International Offshore and Financial Centres Handbook 1999/2000'. For further information about this highly informative guide to offshore centres, or to order your copy, please phone +44 (0) 207 820 7733 or send an email to iofch@mondaq.com