These pages will take you on a tour through the key economic sectors Luxembourg is building on. Apart from the well-know financial sector, Luxembourg has become host to companies from many other sectors that may surprise you.
Aided by the high growth rate, state financial policy has contributed decisively to the success of the Luxembourg economy. Despite low tax rates (VAT, income tax and social security contributions), high growth leads to high fiscal income. The low national debt allows such low tax rates, leading to low ancillary wage costs for employers and high take-home pay for employees hence the country’s attraction.
Contrary to what most people might think, Luxembourg’s economy is not purely based on financial services. If the Grand Duchy boasts one of the world's most important financial centres, it has also been a host to industrial activities, and other economic activities are just as prolific - even if you might not suspect them in Luxembourg, such as the large shipping fleet or the space technologies sector.
From the mid 1980s, transport and communications have developed at breathtaking speed. Research and innovation hold the key to the future, and have been given high priority for investment, both in the public and private sectors. This phenomenon partly explains the fast development of the automotive sector as well as green technologies and health sciences.