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Online News Sources
Tageblatt: www.tageblatt.lu
Luxemburger Wort: www.wort.lu
Business Environment
Luxembourg became one of the six founding countries of the European
Economic Community, which later became the European Union. Luxembourg
joined the euro currency area in 1999. The establishment of the
Luxembourg Stock Exchange and the 1929 laws on holding companies marked
the beginning of the international financial sector. Luxembourg’s
collective investment undertakings (organismes de placement collectif or OPC) dates from 1983, with the passage of the first law on unit trust companies (sociétés d’investissement à capital variable or Sicav).
Other forms of corporate vehicles are governed by the
Commercial Companies Law 1915, as amended. These include the The
Societe Anonyme, abbreviated SA, or joint stock company, and the The
Societe a Responsabilite Limitee, abbreviated SARL, or limited
liability company The Luxembourg Holding Company and 'Soparfi' (Societe
a Participation Financiere) are the forms which permit 'offshore'
activity in Luxembourg. However, they are not separate legal forms as
such, and employ one of the above forms, either SA, SARL or Societe en
Commandite par Actions, as a legal base. Establishing a holding company
is of particular value in Luxembourg. Holding companies set up under
the law of July 31, 1929 (so-called 1929 holding companies) are
generally exempt from income taxes (corporate incometax, municipal
business tax) and withholding tax on dividends paid, and are only
subject to an annual subscription tax and the capital tax. Luxembourg
generally provides for three types of 1929 holding companies: ordinary;
billionaire holdings, requiring minimum capitalization of EUR 24
million and provide for further tax exemptions; and financial holdings
which provide for greater flexibility for intra-group financing.
The CSSF (Commission de Surveillance du Secteur Financier),which
took up its activities in January 1999, is the Luxembourg regulator in
charge of authorisation and control of banks and other professionals in
the financial sector.
Taxes
The full corporate tax rate is 30.38% (2004). The 30.38% rate
includes corporate income tax (including a 4% employment fund
contribution) of 22.88%. municipal business tax at an effective rate of
7.5%, or 6.98% for business undertakings not subject to income tax.
Rates vary among regions.
A key EU fiscal initiative affecting Luxembourg in is the EU's Code
of Conduct Committee's campaign against 'harmful tax practices'. This
was resolved in 2004 with Luxembourg's agreement to modify the dividend
taxation regime for 1929 holding companies.
Stock Exchange
The Luxembourg Stock Exchange is a major listing centre of
international bonds, equities and investment funds. More than 4,100
issuers from about 100 jurisdictions are listed on the Luxembourg Stock Exchange
The Societe de la Bourse de Luxembourg is the competent authority for
admitting securities to the official list of the Luxembourg Stock
Exchange. The CSSF is the stock exchange regulator.
Until 15 July 2005 the Luxembourg Stock Exchange operated only one
market, the “Bourse de Luxembourg”. On 18 July 2005 the Luxembourg
Stock Exchange started to operate another market called the “Euro MTF”
in addition to the Bourse de Luxembourg. Some commentators have
referred to this new market as “Luxalter”.
Key Contacts
Bourse de Luxembourg
Société de la Bourse de Luxembourg S.A.
B.P. 165
L-2011 Luxembourg
Tél: 47 79 36-1
Fax: 47 32 98
E-mail: info@bourse.lu
Internet: http://www.bourse.lu
Commission de Surveillance du Secteur Financier
110, route d'Arlon
L-2991 LUXEMBOURG
Tel: 352 2625111
Fax: 352 26251-601
Email: direction@cssf.lu
Internet: www.cssf.lu
Luxembourg Bankers’ Association (ABBL)
Physical Address
59, boulevard Royal
L-2449 Luxembourg
Postal Address
Boîte postale 13
L-2010 Luxembourg
Tel:(+352) 46 36 601
Fax:(+352) 46 09 21
Email: web@lff.lu
Key Stats
Country Description
Official name: Grand-Duché de Luxembourg.
Administrative divisions: 3 districts (Luxembourg, Diekirch,
Grevenmacher), 12 cantons, 118 municipalities.
Population ( July 2005 estimate) : 468,571. Luxembourgish
(national language), German (administrative language), French
(administrative language)
Capital: Luxembourg-City
Currency (September 2005): US$1 = €0.80 euro
Legal System
Luxembourg has judicial courts and tribunals
(three Justices of the Peace, two district courts, and one Supreme
Court of Appeals); administrative courts and tribunals (State
Prosecutor's Office, administrative courts and tribunals, and the
Constitutional Court). The judges for all courts are appointed for life
by the monarch.
Government:
A mix of parliamentary democracy and constitutional
monarchy. The monarch is hereditary and is head of state. The
unicameral Chamber of Deputies (Chambre des Deputes) is made up of 60
seats. Members are elected by direct, popular vote to serve five-year
terms. The head of government is the prime minister, elected by the
Chamber of Deputies and appointed by the monarch. A Council of State
serves as an advisory body to the Chamber of Deputies. The Council of
State is made up of 21 members appointed by the monarch on the advice
of the prime minister.
Executive
Head of state: Grand Duke Henri (since 7 October 2000)
Prime minister: Jean-Claude Juncker (since 1 January 1995) and Vice
Prime Minister Jean ASSELBORN (since 31 July 2004)
Politics Elections were last held on 13 June 2004. Christian Social
People's Party (CSV) 24 seats, Democratic Party (DP) 10 seats,
Luxembourg Socialist Workers' Party (LSAP) 14 seats, Action Committee
for Democracy and Justice (ADR) 5 seats, Green Party 7 seats. The next
elections are due to be held by June 2009.
Gross domestic product (2003 estimated)
Real gross domestic
product growth: 1.2%. Gross domestic product at market prices: €23.1
million Inflation rate (CPI) ( 2004 est.,)2.3% annual
Labour force (December 2004)
293,700 (of whom 105,000 are
foreign cross-border workers commuting primarily from France, Belgium,
and Germany) (2004 est.) 4.5% unemployment
Public holidays (2005)
1 January (New Year's day), 25 March
(Good Friday), 28 March (Easter Monday), 5 May (Ascension), 16 May
(Whit Monday), 23 June (National holiday), 1 November (All Saints Day),
25 December (Christmas Day), 26 December (St. Stephen's Day).
Time zone
GMT plus one 1 hour. The clock goes forward one hour
at 1:00 on the last Sunday in March and back to normal time at 1:00 on
the last Sunday in October.
Financial Year: Calendar Year
Restaurant Guide
We recommend:
MOSCONI
L-2160 nr.13, Rue Münster
LUXEMBOURG (GRUND)
Tel: 54.69.94
Fax: 54.00.43
TOIT POUR TOI
nr.2, Rue du IX Septembre
L-4996 SCHOUWEILER
Tel : 26.37.02.32
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