Luxembourg, a landlocked country with no direct access to the sea is not a maritime nation by tradition. However, its first steps in the maritime sector in the late 1980s proved a remarkable economic success.
The Grand Duchy, with its expertise in the financial sector, combined with an attractive tax environment as well as a favorable legal and regulatory framework, offers real opportunities for players in the maritime sector in pursuit of globalisation of their activities. Compared to the complexity of the maritime sector, Luxembourg offers simple but effective solutions.
Shipping business in Luxembourg: the benefits
The Luxembourg tax regime, for example, allows for accelerated depreciation and investment tax credits.
Additionally, rather than a tonnage tax, regular corporate taxes are applied at a competitive rate. Together with various investment incentives, this can be quite advantageous for certain sectors.
Innovative solutions are available to encourage investment and an independent Maritime Cluster organisation promotes the development of the maritime sector as well as its related services in Luxembourg. The diversified membership of the cluster allows ship owners and operators to benefit from existing expertise in various other fields like investment funds, asset management, securitisation, private equity, insurance, logistics, etc.
Investing in the shipping business
So for both, merchant vessels and small commercial cruise ships, Luxembourg has the regulatory and financial expertise to make the most out of any operator’s investment. As of September 2012, 222 vessels were recorded in the Luxembourg Maritime Register, among them ships from well-known international companies, such as Jan de Nul Group, CLdN/Cobelfret, Socatra, Bourbon and Dredging International. Around 330 maritime companies are actually based in the Grand Duchy.