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IT Contracting in Luxembourg: Living & Working


Profile written by Matt Walters of Capital Consulting (October 2008).


Languages:Luxembourgish, German and French (official), English widely spoken.
Capital: Luxembourg
Time zone: GMT +1 (+2 in summer)
Currency:Euro (EUR)


Emergency Numbers:112 (all), 113 (Police), 112 (Fire or Ambulance)
Key aiports: Luxembourg (LUX)
Population: 486’006 (July 2008 estimate)
Electricity:230V / 50Hz
Tax Year:1st January – 31st December
National holiday: 23rd June (Official Birthday of Grand Duchess Charlotte)
International dialling prefix: 352
Internet domain suffix: .lu
Cost of living: Luxembourg 26.96% cheaper than London (Mercer, 2008)


Although often overlooked by contractors, Luxembourg’s physical proximity and close ties with Belgium and the EU, as well as its prominent banking sector, make it a prime destination for contractors.

Public holidays in Luxembourg include New Year’s Day, Carnaval (February 19), Easter Monday, May Day (May 1), Ascension, Whit Monday, National Holiday (June 23), Assumption of Mary (August 15), All Saints’ Day (November 1), Christmas Day (December 25), St. Stephen’s Day (December 26).

I. Languages

While the official language of Luxembourg is Luxembourgish, French and German are used as the administrative languages. English is very widely spoken. For the English-speaking contractor, the employment opportunities in Luxembourg are many and varied, and the language barrier is of little importance.

For purposes of local administration, it can be helpful to have a grasp of Luxembourgish, French and/or German, and a foreigner making an effort is always welcome!

II. Accommodation

There is a strong rental culture in Luxembourg, making it relatively easy to find a property for the duration of your contract. Prices for accommodation will of course vary depending on size and location, but a guideline figure of EUR 1300-1600 may be quoted for a small apartment in central Luxembourg.

III. Travel

One of Luxembourg’s key advantages in the view of many contractors is its proximity and copious travel links with the UK.

i. Air

The key airport of Luxembourg (LUX) provides speedy links to all key UK airports by Luxair and BA amongst others. For travel further afield, both Brussels and Frankfurt airport are within easy reach.

ii. Rail

The rail journey from Luxembourg to London (St. Pancras) takes about 4½ hours, with regular daily departures. There are regular trains from Luxembourg to all major European destinations. Paris is reached in just over 2 hours.

iii. Road

The drive from Luxembourg to London is about 375 miles, taking 6½ hours via Brussels and crossing the Channel at Calais via EuroTunnel. It is easy to visit neighbouring France, Belgium Germany and Holland by car or train.




Capital Consulting is an international payroll and contract-management company providing tailor-made tax planning services to contractors working overseas. For more detailed information on your personal situation, please contact Capital on +41 32 732 97 00.




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