The Duchy of Luxembourg is a small country in the heart of Europe that has been attracting more and more expats in recent years. Find out why foreigners are choosing Luxembourg in 2024, as well as the advantages and prospects of moving here

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Luxembourg is recognized as one of the most cosmopolitan countries in the world, because almost 47.3% of the local population is made up of foreigners. In total, representatives of 170 nationalities live in the country.

Despite its small size, the state offers broad prospects for those seeking career growth and an excellent quality of life. Considering the simplification of migration legislation, which the local parliament has been actively working on in recent years, moving here is becoming easier.

Why are expats increasingly choosing Luxembourg in 2024? We will find out further.

Fact 1 – High quality of life

Luxembourg is famous for its high quality of life, as evidenced by various surveys and ratings. In particular, according to the estimates of the Organization for Economic Cooperation and Development (OECD), the country is among the top ten countries with the highest quality of life index. Luxembourg is a leader in the following indicators:

- Safety – around 87% of Luxembourgers feel safe here, and Luxembourg has one of the lowest homicide rates.

- The health care system in the state is developed at the highest level. The local health insurance system covers a significant part of medical expenses (doctor visits, physical therapy, dental care, etc.). 72% of Luxembourgers are satisfied with their state of health.

- Ecology – Luxembourg also boasts a well-preserved environment with significant forest areas despite its small size.

- An ideal work-life balance – only around 3% of workers in Luxembourg feel they work too much, compared to the OECD average of 10%.

Fact 2 – Career prospects in Luxembourg

Luxembourg's labor market is dynamic, the unemployment rate is lower than the European average, and the work environment is multicultural, which facilitates adaptation in the workplace.

Luxembourg is the banking and financial center of Europe, and media, information and communication technologies, logistics, healthcare technologies and eco-technologies have also developed significantly in the country.

There are also large research institutes operating on the territory of the state, in particular the Luxembourg Institute of Science and Technology (LIST). The sector can boast a high level of development and numerous investments.

About 10% of local workers are engaged in work in industry. Chemical, metalworking, steelmaking, electrotechnical and electronic industries, as well as the production of materials and plastics, are developed in the country.

Given that Luxembourg is one of the founding countries of the EU, several institutions are located here, including the Secretariat of the European Parliament, the European Court of Justice and some directorates-general of the European Commission.

Fact 3 – High level of wages

Salaries in Luxembourg are among the highest in the EU:

- The average annual salary is 58,413 euros.

- The minimum salary for unskilled workers is 2,256 euros per month.

Despite the high cost of living, Luxembourg has a wage indexation system that helps maintain the purchasing power of the population.

Fact 4 – Simplification of migration legislation

- EU citizens do not need to obtain any additional permits to access the Luxembourg labor market.

- Citizens of third countries must obtain a residence permit before planning to move here. However, recent directives have made it easier for highly skilled workers to enter and stay in Luxembourg. In particular European Blue Card Holders, for example, can now stay in Luxembourg during the renewal process. Also, the minimum duration of the primary employment contract was reduced from one year to six months.

Fact 5 – Attractive tax system

1. Individuals do not pay tax on property or other assets in Luxembourg.

2. Income from assets (including interest, dividends and capital gains) is taxed, but at much lower rates than in most EU countries.

3. Income tax in Luxembourg starts at a relatively low rate of 8% and only applies to income over €11,265.

4. Luxembourg's corporate tax environment is also favorable, with one of the lowest corporate tax rates in the EU - Luxembourg's average effective corporate tax rate is 23.2%, compared to 25.9% in France and 26.6% in Germany.

Also, expats can take advantage of the right to be exempted from taxation of moving expenses - tuition fees, purchase or rental of housing, etc.

Currently, Luxembourg is recognized as one of the most favorable countries for moving to the EU, and given the simplification of migration legislation, the state is increasingly popular among expats.

We will remind you that we talked about the peculiarities of the procedure for obtaining a visa to Luxembourg for citizens of African and Asian countries here. Useful tips for expats moving to Luxembourg in this article.

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