Luxembourg Chapter: An Introduction

I have the pleasure to introduce the Luxembourg chapter of the Forum for Expatriate Management, an original networked community, both online and in the real world.

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I have the pleasure to introduce the Luxembourg chapter of the Forum for Expatriate Management, an original networked community, both online and in the real world.

But, why Luxembourg?

The travel imprint by Chris Pavone, published by The New York Times of June 25th 2014 names “a small country that’s about the same geographic size, and half the population, of Rhode Island”.

Factually a small country, however, a significant presence on the world economic map.

Addressing the role of expatriate management in the global economic context, the Grand Duchy of Luxembourg is certainly a benchmark.

Firstly, some related facts about Luxembourg today:

  • 269.175 foreigners representing 47% of the total population.
  • A low unemployment rate, 6.1%, (the EU28 average in January 2017 was 8.3%), to read in context of a social minimum wage for unskilled adult workers amounts to 1998,59 euro per month and for qualified adults amounts to 2398,30 euro per month.
  • Average gross earnings in industry 57.730 euro per annum, services 61.287 euro per annum, financial and insurance activities 91.304 euro per annum.
  • All residents in Luxembourg benefit from a comprehensive social security system. It covers family benefits, unemployment insurance, work accident insurance, health care, old age and disability pensions as well as long-term care insurance.
  • The local educational system is based on the three official languages which are French, German and Luxembourgish, as well as on English.
  • Luxembourg city is considered by Mercer’s quality of living study “safest city in the world”.

Lastly, a few insights into what Luxembourg offers today and its presence on the international mobility map:

  • Global and European corporate headquarters.
  • The world leading country for high-skilled employment (in 2015, 59.5% of the entire workforce was employed in jobs demanding high levels of education and skills).
  • In the top 15 of the most innovative countries globally.
  • The first financial centre in the Eurozone (GFCI 19) and one of the world largest investment funds centres.
  • Wide network of double-taxation treaties, competitive tax and social security costs.
  • A special tax regime for inpatriates.
  • An immigration and labour law facilitating the entry of third-country nationals economically active and their family members. In context, the work permit exemption for third-country nationals posted to an undertaking belongs to the same group of companies, in the framework of a provision of services, for a duration not exceeding three months (in the sense of Article 35(2) f) Law of 29/08/2008), the recent extension of the EU Blue Card validity from two up to four years, the fast and faire transposition of the Directive 2014/66/EU on the conditions of entry and residence of third-country nationals in the framework of an intra-corporate transfer and of the Directive 2014/36/EU on the conditions of entry and stay of third-country nationals for the purpose of employment as seasonal workers and the new family reunification conditions must be upheld.
  • The inequality of pay between women and men abolished by the power of law (Law of 15/12/2016).
  • Potentially, increased financial power in the post-Brexit world: « U.S. private equity funds Blackstone Group LP and Carlyle Group LP are pushing ahead with plans to establish so-called passporting rights in Luxembourg to retain the ability to do business in the European Union after the U.K.’s exit, according to people familiar with the matter.” (Bloomberg 25/01/2017), London-headquartered asset manager M&G” has registered the two-new absolute return retail strategies it has launched in December 2016 into a Luxembourg-domiciled Sicav” (Investment Europe 12/01/2017) etc.

If these arguments are not sufficient, I’ll simply respond, why not Luxembourg?

Please, come and join us to exchange on strategic expatriate management.

Tanel Feldman

Senior Partner , Immigration Law Associates

Immigration Law Associates provides in-depth advice on rights and obligations triggered by the cross-border element of a given legal situation. Our know-how is built on an extensive experience in EU law and is supported by a network of partners across the EU. Social security coordination : • Autonomous application of the social security coordination regulations and ECJ case-law, to any situation involves a cross-border element EU Company law : • Establishment -permanent activities • Establishment -self-employment activities International Private Law : • Law applicable to the employment relationship Labour and employment law : • Freedom of movement of workers-equal treatment, access to social benefits • Employment contracts and termination of employment • Working conditions • Employee benefits • Transfer of undertakings • Authorisations of work for third-country nationals Special regimes : • Posted workers • Frontier workers • Highly mobile workers • Employment of record • Intra-EU mobility of third-country nationals