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Why you should launch a Fintech company in Luxembourg

If you want to go shopping in Europe, you could go to Paris or London. If you want a weekend away, you could go to Venice. And if you want to start a new business venture, where would you consider to choose? What about Luxembourg?
While Luxembourg is located at the heart of Europe with the accessibility to reach the wider European market, it has one of the most culturally and linguistically heterogeneous population. In Luxembourg, you have a lot of different nationalities and a lot of languages that are spoken, which makes it the ideal place for international entrepreneurs to start their own business.
As a result, Luxembourg is becoming the forefront of financial innovation in Europe. It is already home to some of the major e-payment and e-commerce companies setting their European headquarters in Luxembourg, such as Alipay, Paypal, Amazon, Rakuten. Competing with other major European Fintech hubs such as London, Paris, or Berlin, what makes Luxembourg a more appealing location for Fintech business?
Small yet speed service process
Luxembourg is one of the smallest countries in Europe situated between Belgium, Germany, and France. One can think the size of the country can be too small to start a business, but that doesn’t go for its startup scene. In fact, it is relatively easy for a startup to grow quickly. The communication channels of the authorities are very direct and it offers easy access to take decisions more quickly.
If we look at the average age of a Fintech company here in Luxembourg, we see that almost two-thirds have been started in the last three years, which gives you an idea of just how dynamic and young the industry is. By Pascal Denis, Partner, Head of Advisory at KPMG Luxembourg
Supportive Fintech ecosystem
Moreover, what really makes Luxembourg one of the leading financial sectors are its own people and government who are willing to be committed to supporting the Fintech community to effectively set up and growing. The government is pushing very hard to build the ecosystem by actively supporting the research, development, and innovation. It also provides attractive tax exemptions for Intellectual Property, as well as equity and bank financing.
Supported by the government and other private sectors, the Luxembourg House of Financial Technology (LHoFT) is the national Fintech hub for financial technology. It helps build and foster Luxembourg’s Fintech ecosystem, bringing Fintech innovators, research, academia, and public officials together in order for them to find the specific industry needs. For instance, when the startup wants to create a new business, the LHoFT is there to help them settle in, grow, and make the right decisions through both domestic and international collaborations.
Outstanding ICT infrastructure
On top of the quality of life with a true and balanced cultural lifestyle, Luxembourg also provides the ideal environment around the innovative startup community. According to the latest Global Information Technology Report by the World Economic Forum, the country is ranked 9th amongst 143 countries worldwide when it comes to utilizing information and communication technology (ICT) for social and economic impact. All these thanks to the support from the Luxembourg government, which has invested and strategically developed its ICT infrastructure over the past decade.
Access to funding network
Funding is critical for entrepreneurs, researchers, and startups to accelerate their business. As the third-highest country by GDP per capita in the world after Qatar and Liechtenstein, Luxembourg offers various funding sources for young innovative enterprises with high growth potential. For example, Luxinnovation, the Luxembourg national innovation agency, offers expert and personalized support for innovative activities. It guides companies to find and apply for the appropriate funding applications, as well as research collaborations as an excellent way of finding complementary know-how, expertise, and technology.
If you are preparing your startup focusing on innovation and technology, are you ready to consider Luxembourg as the perfect place to launch your business?
Here are a few more details about Luxembourg.
- How to start your startup in Luxembourg – Startus magazine
- National Fintech Innovation Hub – The Luxembourg House of Financial Technology
- National innovation agency – Luxinnovation

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