The Grand Duchy has adopted the draft framework law on services in the internal market, which transposes the Services Directive into Luxembourg law, and covers:
- the simplification of procedures,
- the free provision of services,
- the rights of service recipients, and
- cross-border administrative cooperation.
Companies set up within the EU must meet certain conditions (taxation, posting of workers, etc.) when they carry out commercial, craft, industrial or liberal activities within Luxembourg.
"Points of single contact"
The Guichet entreprises portal is the single point of access to procedures for citizens and companies.
Providing services in Luxembourg is generally taxable if the service provider is incorporated in the country, but there are exceptions. If the service provider is located in another EU member state, Luxembourg value-added tax (VAT) must be paid by the client incorporated in Luxembourg.
Any foreign company that provides services subject to Luxembourgian VAT must comply with indirect taxation requirements, namely registering for VAT at the Luxembourg Registry (Administration de l'enregistrement et des domaines).
Direct tax formalities must be carried out through the Direct Taxation Authority. For company tax, a foreign company must declare any profits made in Luxembourg on projects lasting over six months.
The administrative procedures must be completed with the social security authorities.
Work permit applications
If a company is set up in a non-EU member state, work authorisations should be obtained from the Immigration Directorate of the Ministry of Foreign Affairs. For companies set up in the EU, no such authorisation is required, regardless of the worker's nationality.
If you send staff to Luxembourg, you must complete a posted work declaration for the Labour and Mines Inspectorate.
If you provide services on an occasional basis in the craft and industrial professions, you must complete declarations for the Ministry of Small Firms and Traders, Tourism and Housing. These cover the provision of occasional services by the craft and industrial professions.
The Guichet entreprises business portal provides online access to information, administrative procedures and forms.
For business owners looking to provide services in another EU country or to set up there, the EU offers many options, including the citizens' signpost service, FIN-NET, the interactive information service, etc.
The Chamber of Trades provides fact sheets on Luxembourg law.
Business owners can take part in consultations and discussions via the European Business Test Panel and the "Your voice in Europe " portal.