Luxembourg: A great place for your clients to start business in 2025
In 2025, Luxembourg is one of the best places in Europe to start or grow a business. The country is safe, well-connected, and offers strong support to companies from all over the world.
The government has launched a new €300 million support plan for startups and growing businesses. This includes grants of up to €200,000 for new projects and public investment in young companies, especially in tech sectors like fintech, health, space, and clean energy. Luxembourg wants to become a leader in innovation.
To make business more attractive, the corporate tax rate has been reduced to 16%, which makes Luxembourg one of the most competitive places for companies in Europe. There are also tax benefits for foreign professionals who move to Luxembourg, including a 50% income exemption for highly skilled workers.
Setting up a company is now faster and easier. Most business licenses are approved in less than one week. The national agency Luxinnovation offers free support, helping businesses find funding, improve technology, and grow in a smart and green way.
Luxembourg also follows EU rules to protect fair business. Since 2023, a new screening law checks foreign investments in important sectors like energy, health, and data. This gives more security and trust to both investors and the public.
With its strong economy, helpful government, and easy access to European markets, Luxembourg is quickly becoming a top choice for international business in 2025.
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