When exploring new territories to set up shop in, it’s unlikely that Luxembourg springs immediately to mind. But perhaps it should. The tiny Western European nation is drawing attention for its thriving business scene and boasts the fourth-highest number of startups per capita in Europe. So why are so brand startups flocking to Luxembourg?
A strong talent pool
Luxembourg has an incredibly strong talent pool to hire employees from, particularly in industries like tech and finance. For instance, it has the third-highest percentage of ICT specialists in the EU (6.7%), while almost a third of the country’s workforce is linked to the financial sector, which is much higher than financial giants like Switzerland, Germany, and the UK.
A big reason for the strength of Luxembourg’s workforce is the country’s attractiveness to overseas workers, with more than half of its population comprising foreigners. This comes down to factors like a high standard of living and the great salaries on offer, which are among the highest in the EU. In addition, individuals find it easy to secure jobs there, particularly with the number of specialist Luxembourg job sites. In the aforementioned fields of tech and finance alone, you can find everything from SAP and AI specific sites for tech, to dedicated tax and e-finance websites for finance.
A thriving economy
Luxembourg’s economy is flourishing, giving businesses the perfect platform to succeed. For example, the country has the highest GDP per capita according to the IMF, and is one of only nine nations with an AAA rating for its creditworthiness, making it much easier for Luxembourg businesses to attract overseas investors.
The main reason for the country’s economic success is its financial industry, which is placed among the top ten most competitive in Europe. The country has a long history of financial innovation, including creating Europe’s foremost international fund distribution platform and the world’s inaugural Green Bond. As well as being home to the European Investment Bank (the EU’s financial institution), finance giants with bases in Luxembourg include Espirito Santo Financial Group SA, Banque Internationale à Luxembourg and Alter Domus.
A high quality of life
With an extremely high standard of living, Luxembourg is also a fantastic place for entrepreneurs to live. It boasts a free healthcare system, advanced infrastructure and high safety levels, with some even claiming it’s the safest country in Europe. It is politically stable too, with a parliamentary representative democratic monarchy, and free and fair elections. Among its main travel highlights include the capital of Luxembourg City, the cosy town of Echternach, the magnificent Moselle Valley and the Ardennes nature parks. What’s more, Luxembourg is just a short train journey away from France, Germany and Belgium.
Overall, the tiny Western European nation of Luxembourg is a surprisingly good place to set up a business. It will be no surprise to see its already massive expat population increase in the years to come, as more overseas entrepreneurs cotton on to the country’s potential as a business hub.
