Exporting to Luxembourg

Luxembourg, a small market with a world-class financial and technology sector

The Luxembourgish market

Luxembourg is the world’s last grand duchy, a small market with a population of just over 600,000, located in a strategic enclave in the heart of Europe, making it a strategic logistics and distribution centre for the European market.

Despite its small size, it is one of the richest and most stable economies with one of the highest GDP per capita in the world. The country has historically maintained a very high employment rate and well controlled inflation. It is a politically stable country with high voter turnout, an excellent credit rating, low public sector debt and a strong economy that has grown above the EU average in recent years.

The financial sector is at the core of its economy, with banking being the country’s main economic engine over the last decades, contributing one third of the country’s GDP. The City is home to the headquarters of the European Investment Bank, the Court of Justice, the Court of Auditors and the Secretariat General, important bodies of the European Union.

Key issues for exporting

Industry beyond banks

With its high purchasing power, it is an excellent international market for luxury or exclusive products. Its main industries, apart from the financial sector, include iron, steel, aluminium, glass, rubber, chemicals, as well as engineering, tourism and telecommunications, being the European headquarters of companies such as Amazon, Paypal or Rakuten. It is also a renowned wine producer in the Moselle Valley.

The official languages of this market are French, German and Luxembourgish. In business, most people speak French and the general level of English is very good, which facilitates international relations. However, as in any international market, it is advisable to adapt our products and communication elements to Luxembourgish culture and tastes.

The trade balance

As mentioned above, the financial sector is very important in Luxembourg’s economy; its trade balance is in surplus thanks to exports of financial services, insurance, private banking services, investment funds and other related activities. It is also strong in technology and, to a lesser extent, also exports industrial machinery, chemicals and steel.

Imports are concentrated in capital goods, machinery, fuels, energy, food, beverages and chemicals. It has a highly integrated economy in international trade. As a stable market with favourable fiscal conditions and strong financial and banking services, it has become the European headquarters of large international companies.

The Luxembourgish business personality

In order to be successful in business, it is useful to know some aspects of the Luxembourgish personality and etiquette:

Family is very important and a priority and religion plays an important role in their culture. The origin of their cultural values comes from France, although they do not like Latin spontaneity.
They communicate indirectly and subtly so as not to appear rude. In front of strangers, they are reserved and formal.
They value privacy and avoid displaying their emotions or possessions. They tend not to ask or answer personal questions and try to keep their private life private.
Punctuality is strict, so it is advisable to be punctual for all types of meetings. Lateness is considered unprofessional and disrespectful.
Greetings are reserved and formal. Between men and women it is done with a brief handshake and sometimes only a verbal greeting.
Informal chats before meetings are important to foster personal relationships.
Meetings are held within a well-established timetable. We must get to the point with presentations supported by good introductions and avoid unsubstantiated or exaggerated data.
Decision-making is direct and hierarchical. We must be patient. Impatience generates distrust.
Dress is usually a dark suit and tie for men and for women, two-piece suits or dresses/trousers with blouses, elegant but classic.
If you want to give gifts to your customers, it is customary to offer chocolates or flowers.

Related services

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Cupones ACCIÓ for export initiation

Accompaniment to exhibitions

Interested in this market? Contact us

At Barcelona Export we are experts in international trade, specialists in French-speaking markets and experts in the Luxembourg market. Contact us for information and advice.