The Luxembourg government wants to encourage economic development through private-sector initiative. This is practically demonstrated by a steady reduction in both business and personal taxes, social insurance costs, liberal rules on transfer of capital and profits and incentives for new companies.

Luxembourg’s effective corporate income tax is among the most favorable in Europe. In addition to the lowest level of VAT (value added tax) in the European Union, Luxembourg's e-commerce VAT is equally low.

There are venture capital schemes and significant funding flows from private investment funds and banks, often set up with specific objectives such as IT or media related projects.

The National Credit and Investment Corporation (Société Nationale de Crédit et d’Investissement or "SNCI") grants loans at favorable rates.

The Luxembourg taxes on wealth have been abolished.

For more information

• National Credit and Investment Corporation (SNCI) 
• Information on income and corporate taxes (website in French) 
• Information on customs and excise duties (website in French) 
• Information on value added tax (website in French)