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      Luxembourg’s real economy combines resilience, innovation and strategic connectivity, making it one of Europe’s most dynamic environments for business. Backed by a stable political framework and a AAA-rated economy, the country offers fertile ground for industries such as manufacturing, logistics, construction, energy, healthcare and technology. Its central location enables seamless access to major European markets, while a multilingual, highly skilled workforce drives operational excellence across borders.

      Beyond its renowned financial sector, Luxembourg is investing heavily in infrastructure, digitalization, and sustainability. Businesses benefit from a forward-looking regulatory environment that fosters R&D, green transition strategies and digital transformation. Openness to international trade and an extensive network of double tax treaties further strengthen its position as a global hub.

      The results are clear: faster market entry, greater efficiency and enhanced competitiveness on both European and global scales. With its unique blend of economic strength, strategic positioning and future-ready policies, Luxembourg empowers companies to grow sustainably and lead confidently in an evolving world.

      Yves Thorn

      Partner, Corporate & Public Sector Market Leader

      KPMG in Luxembourg


      Market highlights

      Luxembourg’s global economic openness

      Luxembourg ranks among the world’s most open economies, with an openness rate of 180.9% and exceptionally high trade-to-GDP levels. This reflects its deep international integration and its strong appeal to global companies across sectors including finance, logistics, manufacturing, and technology.

      Strategic diversification

      While the financial industry remains a major contributor to Luxembourg’s GDP, the country has made deliberate efforts to expand its real economy. Growth in industry, construction, healthcare and technology is supported by government initiatives focused on innovation, sustainability and digital transformation.

      Sustainability in focus

      Sustainability remains a top priority. Luxembourg has launched tenders for electrification and is reshaping its agricultural and energy policies to align with EU climate goals. Corporate enterprises are increasingly integrating ESG strategies into their operations to stay competitive and compliant.

      Luxembourg offers a stable and competitive tax environment, with the lowest VAT rate in the EU, favorable corporate income tax, and over 60 double tax treaties. Its participation exemption, attractive IP regime, favorable expatriate treatment, and absence of capital duty or transfer tax make it an efficient choice for cross-border structuring and corporates.


      Industry insights

      CEOs doubling down on AI and talent investment as the keys to resilience and growth

      Tax policy, artificial intelligence and talent.

      This study offers a data-driven view of where leadership focus, strategic investment and workforce enablement are most urgently needed.

      Stay ahead of changes in Luxembourg tax and international fund regulations with insights from our experts.

      Key services

      At KPMG Luxembourg, we combine deep industry expertise, global connectivity and advanced technology to help you stay ahead. Whether navigating regulatory changes, expanding into new markets, or reinventing your business model, we provide strategic clarity and measurable results. Through our global network, clients gain access to cutting-edge insights, proven methodologies and innovative solutions tailored to their scale and location.

      Indirect Tax

      Our experts can support you with tailored approaches across various aspects of VAT. We offer a range of services designed to help you navigate risks and identify potential opportunities in indirect taxation.

      Read more
      Management consulting

      We bring together expertise and technology to tackle your biggest challenges and get you to great outcomes faster, with less risk and at scale.

      Learn more
      Regulatory compliance review and transformation

      We assist our clients in meeting regulatory expectations, transforming their operating models, and strengthening resilience in an ever-evolving environment.

      Learn more
      Accounting services

      Go beyond traditional accounting and transform your needs into financial growth. Whatever the challenges you face, our team of experts is here to help you by taking non-core administrative responsibilities off your hands.

      Learn more

      Indirect Tax

      Our experts can support you with tailored approaches across various aspects of VAT. We offer a range of services designed to help you navigate risks and identify potential opportunities in indirect taxation.

      Read more

      Management consulting

      We bring together expertise and technology to tackle your biggest challenges and get you to great outcomes faster, with less risk and at scale.

      Learn more

      Regulatory compliance review and transformation

      We assist our clients in meeting regulatory expectations, transforming their operating models, and strengthening resilience in an ever-evolving environment.

      Learn more

      Accounting services

      Go beyond traditional accounting and transform your needs into financial growth. Whatever the challenges you face, our team of experts is here to help you by taking non-core administrative responsibilities off your hands.

      Learn more


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      Our experts

      Yves Thorn

      Partner, Corporate & Public Sector Market Leader

      KPMG in Luxembourg

      Ugo Platania

      Partner, Management Consulting

      KPMG in Luxembourg

      Emilien Lebas

      Partner, Commerce and Industry Tax

      KPMG in Luxembourg


      Contact us

      KPMG combines our multi-disciplinary approach with deep, practical industry knowledge to help clients meet challenges and respond to opportunities. Connect with our team to start the conversation.