Luxembourg

Luxembourg, a landlocked country in Western Europe, is bordered by France, Belgium, and Germany. The official languages of Luxembourg are Luxembourgish, French, and German.

Founded in 963, Luxembourg became a Grand Duchy in 1815 and an independent state under the Netherlands. Full independence was attained in 1867. Overrun by Germany in both world wars, it ended its neutrality in 1948 when it entered into the Benelux Customs Union and when it joined the North Atlantic Treaty Organization (NATO) the following year. In 1957, Luxembourg became one of the six founding countries of the European Economic Community (later the European Union [EU]). In 1999, Luxembourg adopted the euro (EUR) as its currency.

Luxembourg is divided into three districts, with the city of Luxembourg as the capital. The small, stable, high-income economy, benefiting from its proximity to France, Belgium, and Germany, has historically featured solid growth and low unemployment. The industrial sector, initially dominated by steel, has become increasingly diversified to include chemicals, rubber, and other products. Growth in the financial sector, which now accounts for more than 30% of gross domestic product (GDP), has more than compensated for the decline in steel. Most banks are foreign owned and have extensive foreign dealings. The economy depends on foreign and cross-border workers for about 70% of its labour force.

Even though Luxembourg was impacted by the global economic crisis that began in 2008, the country continues to enjoy a high standard of living and significant growth.

Located at the heart of Europe, Luxembourg has established a reputation as a favoured location for a wide range of international companies from a variety of sectors with diverse business models. Luxembourg provides companies with the capability to establish and adopt business, regulatory, and tax framework for added-value activities in Europe and beyond. Luxembourg is a unique gateway to the European market, 500 million plus consumers (and around 70% of the EU's wealth) are concentrated in a 700-kilometre area around the Grand Duchy.

Luxembourg's success can be attributed to a succession of positive, long-term, focused, and innovative government policies aiming to enhance business and diversity of the country's economy. This approach has allowed Luxembourg to offer companies exceptional opportunities for doing business in Europe. These opportunities include its international and highly skilled labour force, high return on investment, easy access to government bodies, and a very attractive and stable legal and tax framework.

The political stability of Luxembourg is supported by a political culture of consensus where the parties coexist within the context of a broader agreement on key issues. Such stability is a key component of Luxembourg's development.

PwC Luxembourg has over 3,700 people employed from 94 different countries.

PwC firms provide industry-focused assurance, tax, and advisory services to enhance value for their clients.