Luxembourg
Western Europe
EuropeEUSchengen
A high-income EU and Schengen member with a top-tier passport, widely spoken English and strong universities, but case-by-case immigration and tax rules.
79
Overall score
Good · 95% data coverage
Language
Luxembourgish, French, GermanCurrency
EURCitizenship
5 yearsPersonal tax
Progressive, up to 42% plus solidarity surchargeCost of living
€2,500 / mo (single)Rules change often. Confirm any immigration, tax or legal decision with a qualified professional.
Score breakdown
91
Access
17%97Residence12%
76Citizenship and passport5%
75
Earning power
25%75Salary and work12%
75Buying power13%
66
Business and wealth
20%52Taxes7%
89Business8%
50Investment5%
80
Daily life
25%86Quality of life18%
63Education7%
96
Rights and institutions
13%97Freedom6%
95Rule of law7%
Pros
- A top-tier passport
- Widely spoken English
- Strong universities
Cons
- Case-by-case immigration and tax rules
Best for
FoundersStudentsEnglish speakers
Score profile
Access
Residence
97
Citizenship
69
Passport
96
Earning power
Salary & work
75
Buying power
75
Cost of living
30
Economy
83
Business and wealth
Taxes
52
Personal tax
24
Corporate tax
31
Business
89
Investment
50
Wealth building
61
Daily life
Safety
85
Healthcare
87
Environment
97
Infrastructure
87
Education
63
HDI
92
Rights and institutions
Freedom
97
Rule of law
95
Access
Residence
Openness to residents
97Excellent
Migrant stock51.2% of population (2024)
Regulatory quality1.84 (−2.5 to 2.5) (2024)
Main pathways
EmploymentStudyFamily reunificationBusiness or investment where eligible
| Student | Rules depend on status and circumstances; verify the current requirements with the competent authority before acting. |
|---|---|
| Work | Rules depend on status and circumstances; verify the current requirements with the competent authority before acting. |
| Self-employed | Rules depend on status and circumstances; verify the current requirements with the competent authority before acting. |
| Permanent | Rules depend on status and circumstances; verify the current requirements with the competent authority before acting. |
Citizenship
Citizenship accessibility
69Good
| Years required | 5 years |
|---|---|
| Dual allowed | Yes |
| Language | Check the current naturalisation rules for the selected route |
| Residence | Typical headline route: 5 years; qualifying residence and absence rules apply |
| Notes | Rules depend on status and circumstances; verify the current requirements with the competent authority before acting. |
Passport
Passport power
96Excellent
190 / 198
Mobility
#5
Global rank
Yes
Biometric
- Visa-free143
- On arrival38
- eTA9
- Visa required8
Placeholder estimates for 2024 to 2025. Check entry rules with each destination before travelling.
Earning power
Salary & work
Labour-market strength
75Good
Output per worker$263,864 PPP (2024)
Unemployment6.3% (2025)
Participation61.5% of 15+ (2025)
Mean monthly earnings of employees
Overall$7,331 · $8,015 PPP (2024)
Tech (IT & comms)$7,583 · $8,290 PPP (2024)
| Freelance | Market access depends on language, sector, and work authorisation |
|---|---|
| Job market | Use current local vacancy and salary data for role-specific decisions. |
Buying power
Purchasing power score
75Good
GNI / person$106,640 PPP (2025)
Consumption / person$43,791 PPP (2023)
Price level99 (US = 100) (2025)
Income inequality33.6 Gini (2023)
Inflation2.3% / yr (2025)
Cost of living
Affordability
30Limited
Price level99 (US = 100) (2025)
| Rent | Varies substantially by city and neighbourhood |
|---|---|
| Monthly | €2,500 / mo (single) |
| Cities | Luxembourg City, Esch-sur-Alzette |
Economy
Economic strength
83Excellent
Output & income
GDP$101.2B (2025)
GDP / person$147,252 (2025)
GNI / person$106,640 PPP (2025)
GDP growth0.4% / yr (2024)
Stability & labour
Inflation2.3% / yr (2025)
Unemployment6.3% (2025)
Output per worker$263,864 PPP (2024)
Sector composition
Agriculture0.2% of GDP (2025)
Industry8.9% of GDP (2025)
Services81.4% of GDP (2025)
Main industries
Financial servicesInvestment fundsSteelLogisticsTechnology
Top exports
Financial servicesSteel & metal productsMachinery
| Type | High-income, finance-led |
|---|---|
| Key sectors | Cross-border banking & funds, Investment management, Satellites & logistics |
| Summary | One of the world's richest economies per capita, a global hub for investment funds and cross-border banking. |
| Currency | Euro (eurozone member) |
Business and wealth
Taxes
Tax friendliness
52Moderate
| Personal | Progressive, up to 42% plus solidarity surcharge |
|---|---|
| Corporate | About 24% combined in Luxembourg City |
| Capital gains | Treatment varies by asset, holding structure, residence, and treaty position |
| Dividends | Rates and withholding depend on residence and treaty eligibility |
| Exit tax | Check current domestic rules before changing tax residence |
| Foreign companies | Management, permanent-establishment, CFC, and reporting rules may apply |
Personal tax
Personal tax
24Low
| Personal | Progressive, up to 42% plus solidarity surcharge |
|---|---|
| Freelance | Registration, immigration permission, tax, and social contributions may apply |
| Capital gains | Treatment varies by asset, holding structure, residence, and treaty position |
| Dividends | Rates and withholding depend on residence and treaty eligibility |
| Exit tax | Check current domestic rules before changing tax residence |
Corporate tax
Corporate tax
31Limited
| Corporate | About 24% combined in Luxembourg City |
|---|---|
| Capital gains | Treatment varies by asset, holding structure, residence, and treaty position |
| Dividends | Rates and withholding depend on residence and treaty eligibility |
| Foreign companies | Management, permanent-establishment, CFC, and reporting rules may apply |
Business
Business friendliness
89Excellent
Regulation & bureaucracy
Regulatory quality1.84 (−2.5 to 2.5) (2024)
Government effectiveness2.04 (−2.5 to 2.5) (2024)
Operating rules
| Foreign company | Generally possible, subject to sector, registration, tax, and substance rules |
|---|---|
| Local company | Available company forms and capital requirements vary |
| Freelance | Registration, immigration permission, tax, and social contributions may apply |
Investment
Investing environment
50Moderate
Market cap69% of GDP (2025)
Private credit85% of GDP (2024)
| Capital gains | Treatment varies by asset, residence, holding period, and treaty position |
|---|---|
| Dividends | Data not available yet |
| ETFs & funds | Data not available yet |
| Wealth tax | Check current national and subnational rules |
| Brokers | Local and international availability varies by residency and compliance checks |
| Foreign access | Data not available yet |
| Tax-advantaged | Data not available yet |
Wealth building
Wealth accumulation
61Moderate
Salary & work
75Good
Business
89Excellent
Investment
50Moderate
Tax friendliness
52Moderate
Cost of living
30Limited
Daily life
Safety
Safety & stability
85Excellent
Institutions & stability
Control of corruption2.02 (−2.5 to 2.5) (2024)
Political stability1.07 (−2.5 to 2.5) (2024)
Check current government travel and security advice before relocating.
Healthcare
Healthcare score
87Excellent
Outcomes
Life expectancy83.2 years (2024)
Under-5 mortality2.2 per 1,000 births (2024)
Capacity & resourcing
Physicians2.98 per 1,000 (2017)
Hospital beds3.95 per 1,000 (2023)
Health spending$8,808 PPP / person (2024)
System & costs
| System | Public/private mix varies by eligibility and residence status |
|---|---|
| Insurance | Check residence-permit and local coverage requirements |
| Average cost | Depends on eligibility, income, insurer, and chosen coverage |
Environment
Environment score
97Excellent
Environmental pressure
PM2.5 exposure7.4 μg/m³ annually (2023)
Water stress4.0% (2022)
Infrastructure
Infrastructure score
87Excellent
Digital infrastructure
Internet use99.1% (2025)
Internet resilience78 / 100 (2026)
Fixed speed89 / 100 download index (2026)
Mobile speed79 / 100 download index (2026)
Sources: World Bank World Development Indicators · Internet Society Pulse Internet Resilience Index
Utilities
Electricity access100.0% (2023)
Grid losses3.5% of output (2024)
Transport
Transport quality3.60 / 5 (2022)
Rail density105.3 km / 1,000 km² (2021)
Air connectivity70,580 departures / million people (2023)
Education
Education score
63Moderate
Attainment
Expected schooling14.4 years (2023)
Mean schooling12.6 years (2023)
Participation & investment
Tertiary enrolment22% gross (2024)
Education spending3.7% of GDP (2022)
| Tuition | Low public tuition; programme fees vary |
|---|---|
| Public university | Varies by institution, programme, and student nationality |
| Languages | Luxembourgish, French, German |
| Student work | Rules depend on status and circumstances; verify the current requirements with the competent authority before acting. |
HDI
Human development score
92Excellent
HDI0.922 (2023)
Knowledge
Expected schooling14.4 years (2023)
Mean schooling12.6 years (2023)
Rights and institutions
Freedom
Freedom score
97Excellent
| Freedom in the World | 97 / 100 (Free) |
|---|
Sources
Rule of law
Rule of law score
95Excellent
| Rule of Law percentile | 95 / 100 |
|---|
Sources
Resources
Official references
UN Statistics: M49 country and area codesunstats.un.orgPwC: Worldwide Tax Summariestaxsummaries.pwc.comEuropean Union: EU countrieseuropean-union.europa.euCouncil of the EU: Schengen areaconsilium.europa.euUNDP Human Development Report 2025hdr.undp.orgInternet Society Pulse Internet Resilience Indexpulse.internetsociety.orgWorld Bank World Development Indicatorsdata.worldbank.orgILOSTAT (International Labour Organization)ilostat.ilo.org
Quick links
Data is illustrative. Not legal or tax advice.