The Grand Duchy of Luxembourg, or simply Luxembourg, is known as one of the EU’s founding states, an international banking hub, and home to major institutions like the European Court of Justice, the EIB, and Eurostat. Despite its modest territory – only 2,586 km² – the country has established itself as a wealthy, stable, and influential state strategically positioned for cross-border work and travel, with direct access to France, Belgium, and Germany. Luxembourgish, the national language of Germanic origin, is spoken by approx. 400,000 residents, alongside French and German, while English is embraced in professional and business settings.

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Due to labor shortages in the past, Luxembourg has attracted a highly diverse pool of internationals: today, nearly half of the country’s population is foreign-born, and approx. 47% of jobs are filled by cross-border commuters, mainly from France. In fact, only one in four workers holds Luxembourgish citizenship. The country boasts a resilient, diversified economy powered by finance and high-end industries, with low unemployment rates at just 2–3%, generous salaries, and the EU’s highest minimum wage.

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While it’s clear why Luxembourg appeals to expats, we invite you to explore the country’s visa and tax framework, in-demand industries, lifestyle essentials, and practical tips for a well-informed and streamlined relocation process.

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Moving to Luxembourg for work or business: what industries offer the most opportunities for expats?

Luxembourg’s industrial and business landscape is unusually diversified for its size: finance and fund management dominate, but other highly skilled industries such as tech, logistics, media, space, and public/EU institutions create a broad palette of roles for expats.

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The country is the world’s second-largest investment fund center, hosting hundreds of fund managers and over 120 banks. Roles in fund administration, compliance, and wealth management are consistently in demand. These positions pay well and often come with multinational teams and English-first workplaces, so senior analysts, portfolio managers, risk experts, and fund operations specialists find fast entry routes here.

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Tech and logistics are among the country’s fastest-growing opportunity areas. Global cloud, e-commerce, and satellite firms, such as Amazon, PayPal, and SES, have bases here, creating demand for software developers, cloud engineers, data scientists, and cybersecurity specialists. Luxembourg’s strategic location and first-class cargo infrastructure also make it a logistics and supply-chain hub, so roles in operations, procurement, and international logistics are plentiful. The government actively supports innovation in space tech, data analytics, and telecom, which translates to well-funded R&D with regular demand for specialized engineers and researchers. Tech talent is attracted to Luxembourg due to a broad pool of multinational employers, English-friendly workplaces, and lucrative compensation packages.

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To international companies in the aforementioned industries, Luxembourg offers R&D incentives and public-private partnership grants, as well as corporate-friendly regulatory support and access to multilingual, multicultural talent.

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What types of visas are available to foreign professionals in Luxembourg?

EU, EEA, and Swiss citizens enjoy visa-free access to the local job market and business opportunities, with the obligation to register their residence in Luxembourg after 3 months of stay.

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For non-EU nationals, the following types of visas are available:

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• Work (Category D) Visa. This type is suitable for individuals holding an employment contract from Luxembourg-based employers. An employer must register the applicant with the National Employment Agency (ADEM). The work visa is valid for 12 months with the possibility of renewal, grants its holders the right to change employers within the same position/sector after 12 months, and allows for family reunification.
• EU Blue Card. This type is available to highly skilled professionals with a university degree or other proven qualifications for the job, an employment contract for at least 6 months, and a salary that meets the minimum annual threshold, which is EUR 58,968 in 2025. The EU Blue Card in Luxembourg is valid for 96 months.
• Residence Permit for Self-Employed. While there is no separate visa for digital nomads, startup founders, and investors, these groups of individuals can obtain the right to carry out professional or business activities in Luxembourg through a designated residence permit, which is valid for up to 3 years. Applicants must submit a business plan, proof of funds, and get approval from the Consultative Commission of Self-employed Workers (CCTI) or the General Directorate for SME, depending on the type of activity. Digital nomads who intend to stay in Luxembourg for no longer than 90 days can simply obtain a tourist visa.

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What taxes apply to foreign employees and entrepreneurs in Luxembourg?

The country has a progressive tax system, with personal income tax rates ranging from 0% for annual income below EUR 13,230 to 42% for high earners in 2025. Realistically, skilled employees pay 30-40%, depending on gross annual salary. Moreover, there is an additional 7-9% solidarity tax for higher incomes. A special impatriate regime grants highly skilled employees a 50% exemption on up to EUR 400,000 of income (for up to 8 years) if they earn at least EUR 75,000 and meet other conditions.

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💡Need more clarity? Get an accurate forecast of your net (after-tax) income in Luxembourg using the Payroll Cost Estimator tool.

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In return, employed individuals (both local and foreign citizens) benefit from enrollment in the CNS health system and pension scheme. While health insurance is compulsory, public healthcare is high-quality and largely reimbursed by CNS.

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Business taxes are moderate by European standards: the corporate rate is approx. 24-27% after municipal business tax, with no capital gains tax in many cases. Double taxation is prevented through treaties with all EU member states and many non-EU countries.

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What is life like for expats in Luxembourg?

Luxembourg is undeniably expensive; in return, internationals who move here enjoy an exceptional quality of life. The country is listed among the world’s top 20 expat destinations, offering political stability and everyday safety, free public transport, free primary education, and free children’s healthcare for registered residents, as well as generous monthly child allowances. It’s also worth noting that Luxembourg is the only country in Europe with a negative gender pay gap. Full-time employees are eligible for 26 days (often more) of annual paid leave, 20 weeks of maternity leave, and 10 days of paternity leave.

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On the flip side, potential newcomers to Luxembourg should prepare for high living costs: rental prices in the capital city average EUR 1,000-1,500 per month for a studio and EUR 1,700-EUR 3,000 per month for a 2-3 bedroom apartment, with deposits equivalent to 1-3 months of rent being increasingly common. Utility bills, groceries, and restaurants are also pricier than those in the neighboring countries, but the balance of income and spending is offset by high local salaries. In practice, most expats find that their increased income compensates for the cost of living.

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Despite its small size, Luxembourg offers a vibrant and active international community, with numerous cultural venues and networking opportunities for English-speaking individuals. Top it off with well-established transport connections for European travel, intensive language support for children of expat parents, and a selection of public and private schools offering multilingual education – and you’ll get a welcoming environment for both short and long-term residence.

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What are the possible challenges of relocating to Luxembourg, and how to overcome them?

Despite Luxembourg’s opportunities, relocating isn’t without obstacles. Meeting intricate visa requirements for your specific type of employment or business activity, navigating tight housing markets, and facing high initial costs that come with relocation can create a burden of multitasking – that’s why it’s always a great idea to turn to reliable third-party support.

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Consider starting your journey to Luxembourg with Acvian. To employers, we offer an EOR solution: we hire and manage teams locally on your behalf without the need to establish a legal entity. For employees and remote workers, our Umbrella Company solution works best: we handle your employment, allowing you to live and pay taxes locally while working for a foreign employer.

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Our team has an in-depth understanding of the local landscape and is happy to provide you with detailed information. Book a meeting with our expert or submit a request form, and we’ll be in touch with you soon!