Moving to Luxembourg

Embarking on the journey to Luxembourg is an invitation to a world of cultural richness and vibrant experiences. Nestled in the heart of Europe, this small country offers not just picturesque landscapes and historical wonders but also a lifestyle shaped by diverse languages and a high standard of living. Moving here is not just a change in location; it's an opportunity to immerse oneself in a dynamic blend of traditions, promising a daily tapestry of new and exciting adventures.

European Union citizens planning an extended stay in Luxembourg, exceeding three months, must possess a valid national identity card or passport and demonstrate sufficient financial means. Upon arrival, it is mandatory for EU nationals to declare their presence within eight days and register at their new commune of residence within three months. The registration certificate, obtained from the communal administration, varies based on the purpose of relocation (employment, education, family reunification). This certificate, containing personal information, remains valid indefinitely.

Relocating from London to Luxembourg involves navigating the immigration process and understanding entry requirements, especially considering the changes post-Brexit. Until December 2020, British citizens enjoyed a visa-free stay of up to 90 days within a 180-day period in Luxembourg. However, with the onset of 2021, new procedures and potential visa requirements may be in effect. Long-term residency for UK citizens already living in Luxembourg requires registration with local authorities to retain visas. Future moves in 2021 may necessitate visas based on purposes like study, employment, self-employment, or business. Selecting the best immigration route depends on individual qualifications, with options ranging from family reunification and marriage to employment or starting a business. Employment and business opportunities often attract British citizens due to financial independence and above-average income. Document requirements vary based on the reason for relocation, typically including a valid passport, photographs, and specific documents related to the purpose, such as job offers or business registration. The Luxembourg Immigration Department handles the processing of these documents. Luxembourg boasts a significant expat community, with the country's appeal evident in the number of UK citizens residing there. As of May 2019, Luxembourg held the 7th largest expat community, making it a desirable destination for those contemplating a move from London.

Moving to Luxembourg with children involves navigating the education system, which offers a variety of national and international schools. The majority of schools are government-run and provide free education. Mandatory education spans from ages 4 to 16, creating a multilingual environment with French, German, Luxembourgish, and some English.

The education system encompasses fundamental education from ages 3 to 11, divided into four cycles. The first cycle focuses on early childhood development, emphasizing social skills and the Luxembourgish language. Subsequent cycles cover literacy, mathematics, and languages. Over 150 fundamental schools are available, and changing schools is possible.

Transitioning to secondary education from ages 12 to 17 or 18 involves choosing between Lycées (preparing for university) and Lycées techniques (emphasizing vocational careers). Enrollment requires an application, and the seven-year curriculum includes general subjects for Lycée Classique and practical training for Lycée Technical.

Language integration is crucial, starting with Luxembourgish in the first cycle and progressing to German and French in later cycles. Additional support, such as language courses, is offered for those unfamiliar with these languages.

If you are planning to move your company to Luxembourg, there are several steps you need to take to ensure a smooth transition. Here is a general guide to help you navigate the process:

Research and Planning:

• Understand the business environment in Luxembourg, including legal and regulatory requirements.
• Evaluate the market and potential opportunities for your business in Luxembourg.

Legal Structure:

• Decide on the legal structure for your company in Luxembourg. Options include a Société Anonyme (SA), Société à Responsabilité Limitée (SARL), or others.
• Consult with legal professionals to ensure compliance with Luxembourg's business laws.

Registration and Licensing:

• Register your company with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés - RCS).
• Obtain any necessary licenses or permits for your specific industry.

Taxation:

• Understand the tax implications of moving your company to Luxembourg. Luxembourg offers a favorable tax environment for businesses, but it's essential to comply with local tax regulations.
• Consider consulting with a tax advisor to optimize your company's tax structure.

Banking and Finance:

• Open a business bank account in Luxembourg.
• Familiarize yourself with the local banking and financial services available.

Office Space and Infrastructure:

• Find suitable office space for your business operations.
• Ensure that your company has access to necessary infrastructure and utilities.

Hiring and Employment:

• Understand the labor laws in Luxembourg, including employment contracts and regulations.
• If you plan to hire local employees, be aware of the recruitment and onboarding processes.

Networking:

• Connect with local business networks, chambers of commerce, and industry associations.
• Attend events and conferences to build relationships within the Luxembourg business community.

Language and Culture:

• Luxembourg has three official languages: Luxembourgish, French, and German. Familiarize yourself with the language and cultural aspects to facilitate communication and business interactions.

Compliance and Reporting:

• Stay informed about reporting requirements and compliance obligations for your company in Luxembourg.
• Keep track of any changes in regulations that may affect your business.

Insurance:

• Ensure that your business has the necessary insurance coverage, including liability insurance.

IT and Technology:

• Set up the necessary IT infrastructure for your business operations.
• Comply with data protection regulations and ensure the security of your company's information.

The transposition of the EU Directive 2019/2121 into Luxembourg, known as the Mobility Directive, is underway, with a deadline set for January 31, 2023. The current Luxembourg regime for cross-border conversions offers advantages such as minimal documentation, a short implementation timeframe, and limited costs. However, the upcoming Mobility Directive regime introduces a more complex procedure, including detailed documentation, reports, and approvals, aiming to harmonize rules across Europe.

Under the current Luxembourg regime, companies can migrate within or outside the EU efficiently, maintaining legal personality and benefiting from a well-established legal and notarial practice. This has positioned Luxembourg as a hub for entities entering or leaving the EU market. The Mobility Directive, set to be implemented in Luxembourg law, covers limited liability companies and introduces new protective measures for shareholders, creditors, and employees.

The benefits of the Mobility Directive include exit rights for minority shareholders, protection for creditors, and the right for stakeholders to make observations before a general meeting. However, for companies falling outside the Mobility Directive's scope, the current Luxembourg regime may still apply, offering a more straightforward and less time-consuming process for cross-border conversions.

Companies considering EU cross-border conversions involving Luxembourg should be mindful of the impending changes and may choose to expedite the process to leverage the current, more efficient Luxembourg cross-border conversion regime before the new directive takes effect.

Bill from London says: "Having relocated here about a year ago with my wife and child, I've noticed significant differences from London. The atmosphere is much quieter, with shops closing early, especially on Sundays. Getting around can be challenging without a car, particularly on Sundays with limited routes, and after 8 or 9 at night when buses become less frequent (contrasting with the midnight options in London). Despite these challenges, the potential for a better quality of life is evident due to higher wages and the stunning scenery.

If your goal is to save money over a period or invest in a house in a picturesque area before anticipated development, this place is ideal. Flights, especially if booked in advance with EasyJet or Luxair (although Luxair tends to be pricey), can be reasonably affordable. If the job prospects are promising, with a good salary and no significant ties holding you back, taking the opportunity is worth considering, though it might impact your social life."

Jack from Berlin says: "The initial six months in Luxembourg are akin to paradise with stunning summers, picturesque nature, excellent hiking opportunities, free transportation, and a notably low crime rate compared to larger cities. However, as the seasons change, the allure may wane with the onset of rains and a perceived lack of vibrant nightlife, especially on Sundays. Learning both French and German might prove challenging, and sustaining enthusiasm could hinge on factors like a high income, finding love, or originating from a less favorable home country where returning is not a viable option.

A piece of advice: it's recommended to reside within Luxembourg City, at least initially, for a more fulfilling experience. This candid perspective aims to provide a realistic view of life in Luxembourg."

When preparing to move to Luxembourg, ensuring your health and safety is a top priority. While you might not need all the items listed, it's essential to discuss your specific needs with your doctor. Make sure to pack your prescription medicines, extra supplies in case of travel delays, and any necessary medical documents, including a letter from your doctor on letterhead stationery for certain medical supplies.

Consider packing items such as glasses or contact lenses, along with spares in case of damage. If you have specific health conditions like diabetes, remember to bring needles, syringes, and testing supplies, all accompanied by a letter from your doctor. It's also advisable to include over-the-counter medicines for common ailments like antacids, diarrhea medicine, and pain relievers.

For preventing illnesses or injuries, pack hand sanitizer, water purification tablets if venturing into remote areas, insect repellent, and sunscreen. Personal safety equipment, like child safety seats or bicycle helmets, may be necessary. A comprehensive first-aid kit with essentials such as bandages, antiseptics, and medications for various purposes is crucial.

Lastly, ensure you have all the necessary documents, including health insurance information, copies of prescriptions, and a contact card with essential addresses and numbers for your contacts in both the United States and Luxembourg. This careful preparation will contribute to a smooth transition and your well-being in your new environment.