Doing business in Luxembourg is fairly straightforward. The government looks after its workforce with strict rules on working hours, leave, taxes, and the minimum wage. Expats here can expect a good work-life balance and decent salaries, and some highly qualified newcomers even qualify for significant tax relief in their first years in the country.
Luxembourg has a large international community and is highly accommodating of foreigners. It may prove tricky to land a job at first, but you can usually settle into the workplace once you find one, especially since English is widely used in Luxembourg’s international and financial sectors alongside French.
Fast facts
Business hours
Employees in Luxembourg typically work Monday to Friday, and offices are open from around 8am or 9am to 5pm or 6pm. Plenty of companies offer flexible hours, so employees can arrange their day to suit them, as long as they work a 40-hour week.
Business language
French, German, and Luxembourgish are all official languages, and French is the one most widely used in business. You’ll also hear German and Luxembourgish at work. English has become the second most common workplace language, and it’s the default in finance and at the EU institutions.
Greetings
The appropriate greeting between business associates is a firm handshake. Among friends (but not between two men), three light kisses on the cheeks are typical. Address everyone as Monsieur or Madame and their surname until they invite you to call them otherwise.
Business cards are exchanged when you first meet a business associate. They usually include both a job title and an academic title. Have your business cards printed in French, and add an English version for international and finance circles.
Business dress
Luxembourgers dress formally and conservatively for work. They tend to wear high-quality clothes and avoid bright colours. Men wear suits and ties, while women typically dress in suits, dresses, skirts, and blouses.
Gifts
Gifts are rarely exchanged in Luxembourg’s business world, but if you’re invited to someone’s home, it’s customary to bring flowers or a good bottle of wine for the host.
Gender equality
Luxembourg is the only EU country with a government ministry dedicated to gender equality. It’s currently the Ministry for Gender Equality and Diversity. In 2016, the government made equal pay for equal work a legal requirement, and Luxembourg now has one of the smallest gender pay gaps in the EU. Progress is less even at the top, where women are still underrepresented in senior and leadership roles. Expat women are unlikely to face discrimination at work.
Business culture in Luxembourg
Business culture in Luxembourg is conservative and formal, but its labour laws are firmly on the side of employees, so expats can generally expect a good work-life balance and a solid salary.
Business structure
Luxembourgish firms tend to be hierarchical, and senior-level employees are highly respected. Decision-making happens at the top of the organisation. Despite this traditional structure, many businesses are adopting a different management approach to increase staff participation.
Work-life balance
Workers in Luxembourg generally have a good work-life balance. Full-time employees work eight hours a day, five days a week, which adds up to 40 hours. Overtime is mostly paid, but employees are legally prohibited from working more than 48 hours a week.
On top of the 11 public holidays, full-time employees are entitled to at least 26 days of paid leave a year. This may differ for fixed-term or part-time employees.
Meetings
Meetings in Luxembourg are formal, and attendees follow protocol closely. The purpose of a meeting is usually to formalise a decision or give instructions, since the decision-making happens beforehand. Small talk is kept to a minimum, and the rules of conduct are taken seriously.
Time
Punctuality is taken seriously in Luxembourg, both inside and outside the workplace. If you’re running late, you should call ahead to let your counterpart know. Workers in the country adhere closely to schedules and meet their deadlines.
Communication
Luxembourgers are generally rational and pragmatic, especially in the workplace. Strong criticism and assertiveness aren’t appreciated, so try to communicate with courtesy and a bit of charm.
Expats should avoid high-pressure negotiation tactics and be careful not to rush decisions. Emotional outbursts and bragging about achievements also go down badly.
Dos and don’ts of business in Luxembourg
- Don’t arrive late to meetings or business engagements
- Do dress formally and conservatively
- Do greet business contacts with their surname and honorific title
- Do keep your personal and work life separate, and respect your colleagues’ privacy
- Don’t schedule business meetings in July or August, or around Easter and Christmas, when much of the country is on leave
- Don’t brag about money or ask what colleagues earn, as Luxembourgers value discretion