Luxembourg offers a range of support measures to ensure a good start to newly created companies.
Land may be provided at favourable rates in one of the numerous national, regional or municipal industrial parks. Industrial sites are equipped with infrastructure and public services: access to the transport and communications network, water supply, sewer system, electricity and natural gas. All sites are located close to major international highway, railway and airport networks.
Business and innovation centres offer a platform to host and assist entrepreneurs or technology-based companies wishing to establish a new and innovative activity in Luxembourg.
Incubators provide appropriate advice and assistance for all new projects, thus facilitating their development and growth. They also serve as relay centres offering a temporary location to foreign companies setting up their business in Luxembourg.
Financial support may be granted for the funding of specific projects in order to complement equity and bank financing. Support may be granted to small and medium-sized companies and to companies located in economic development areas. Financial support for research, development and innovation investment focusing on new products, services or processes, as well as for environmental protection or efficient energy use is possible.
Capital grants from the government as well as medium and long-term loans from the National Credit and Investment Institution (Société nationale de crédit et d'investissement, SNCI), a public-law banking establishment, are available.
A rewarding tax environment
Beside the level of VAT, which is one of lowest in the EU, Luxembourg’s effective corporate income tax is among the most favourable in Europe. Accelerated depreciation and tax credits, applied to qualifying investments, complete the attractive tax climate, thus contributing to a successful business launch and to a high return on investment.
(Source: Luxembourg, your prime business location)