Strategic European location

Luxembourg is extremely well positioned in the heart of Europe with direct access to the strong EU economy. It borders two of the EU’s main consumer markets, France and Germany. 60% of the EU’s GDP can be reached within a two-hour flight. The airport, conveniently located just 15 minutes from the centre of Luxembourg City, is one of Europe’s leading cargo hubs and offers direct flights to over 100 destinations.

Luxembourg benefits from its proximity to major cities such as Brussels (200 km), Frankfurt (250 km), Amsterdam (360 km) and Paris (380 km). Paris can be reached by high-speed train in just above 2 hours.

Excellent base for international trade

Being located in Luxembourg means being international from day 1. It enables companies to have a European perspective and plan for growth across the EU market from the outset. Having an international perspective in decision-making is as natural for company executives as for politicians and government officials.

The economy is strongly export oriented, and as a leading financial centre specialised in global and European cross-border activities, the country has a well-developed legal and regulatory framework for international trade. Luxembourg has frequently been able to adapt EU legislation in a swift manner ensuring clarity and predictability for businesses.

Luxembourg has three official languages: Luxembourgish, German and French. English is widely spoken and frequently used in the business community. Companies can be established in French, German or English (with a French or German translation).

Bridging markets and business cultures

Having been in the midst of interactions between European nations for centuries, Luxembourg has a natural tendency to serve as a bridge between different cultures and business approaches. Having a base here often facilitates the reach to various European markets from one single location.

With 74% of the workforce made up of foreigners (non-national residents in Luxembourg and cross-border workers from neighbouring countries), it is easy to recruit staff with the language skills and cross-cultural experience needed for doing business internationally.

Luxembourg in the EU

Maintaining good relations with cultures and countries around the world has always been one of Luxembourg’s strengths. The outwards-oriented country has had an impact on international relations and policies that far exceeds its geographical size.

A member of the intergovernmental Benelux Union (which includes Belgium, the Netherlands and Luxembourg), Luxembourg is also one of the founding members of the European Union and member of the Eurozone. The agreement to build a Europe without border controls was signed in Schengen, a Luxembourg village where its borders meet those of Germany and France. Any company that creates an entity in Luxembourg has full access to the EU’s internal market, which covers 27 countries with 445 million consumers.

Luxembourg is also very active in international diplomacy and is an outspoken proponent of multilateralism and universal values. As such, the country was elected to join the UN Human Rights Council for the 2022-2024 term.

#1 in the world for trade openness

(The World Bank, 2022)

#1 in the world for export of goods and services as percent of GDP

(The World Bank, 2022)

8th most global economy in the world

(2022 KOF Globalisation Index)

Download our brochure

First name*
Last name*
Email *
I would like to subscribe to the monthly Crossroads newsletter.
By clicking on "submit", you consent to allow Luxembourg Trade and Invest to store and process the personal information submitted to provide you the content requested. *

Relevant articles

NorthStar Earth & Space establishes European HQ in Luxembourg

Read more

World-leading 3D scanners made in Luxembourg

Read more