7 Reasons Why Expats Are Relocating to Luxembourg
Located in the heart of Western Europe, Luxembourg is one of Europe’s leading financial centres and attracts many finance professionals each year. Here are 7 reasons why more expats are now relocating to Luxembourg.
The second richest country
Despite being one of the smallest countries, Luxembourg is the second richest country in the world with an annual average GDP of 79,593,91 USD. The high GDP average is a result of a large number of professionals working in Luxembourg whilst living in surrounding countries such as Belgium, France and Germany.
the highest SALARIES in Europe
According to Eurostat data, Luxembourg pays the highest minimum wage in Europe at 2,071 EUR per month. Importantly, the minimum wage increases by 20% for those considered as ‘skilled workers.’
A tax haven
With favourable tax laws and political and economic stability, Luxembourg has been the tax haven for corporations and rich individuals since the 1970s. Many of the world’s largest corporations have been able to cut taxes and save billions by creating branches and subsidiaries in Luxembourg.
Moreover, Luxembourg’s personal income tax rates are among the lowest in Europe, making the country an attractive destination for many expats. Personal income tax is calculated according to a sliding scale increase that ranges from 0% to 42% dependent on your income. A solidarity tax of 7% must be paid, however, for those earning more than 150,000 EUR in tax class 1 and 1a or more than 300,000 EUR in tax class 2, 9% of taxes must be paid.
With more than 170 different nationalities, Luxembourg is proud to be a multicultural country. Of Luxembourg’s population – 590,667 – almost 48% are non-Luxembourgers, making the Grand Duchy the country with the highest ratio of foreign nationals out of all the OECD countries. The diverse and multicultural society creates a welcoming environment for expats to live.
The distinct nationalities that constitute the country means that multiple languages are spoken, making it easier for expats to adapt to everyday life in Luxembourg. Luxembourg residents tend to either speak Luxembourgish, German, French or English, or a combination of these languages. It’s not unusual to hear a conversation begin in French and end in English.
Importantly, Portuguese is also widely spoken since 16% of Luxembourg’s population is made up of Portuguese natives.
Situated in the heart of Western Europe, you can arrive in a foreign country within just under an hour’s drive! Why not take a day trip to the quintessential German town, Bernkastel-Kues, and enjoy drinking wine along the Moselle River. With a zoo, aquarium, golF courses and thermal baths, Amnéville in France makes the perfect day out for some family fun and is only a 45-minute drive from Luxembourg city.
If you fancy travelling a little further, you can catch one of the nine flights per day to London and arrive in the international business hub within an hour. Paris is even less than an hour’s flight away!
Safest country for expats
In a recent survey by InterNations, Luxembourg ranked in first place as the safest country in the world for expats. With only half a million people living in the country, its crime rate is one of the lowest in the world.
If you are interested in a move to Luxembourg or anywhere else in the world and would like to speak to Kingpin International about international tax opportunities, please contact a member of the leadership team. Alternatively, please browse our current international tax vacancies.