Luxembourg, June 21, 2025 – Luxembourg is set to solidify its position as a premier global financial center with the introduction of a modernized carried interest tax regime and a special tax framework for startup employees’ stock options.  Announced by Finance Minister Gilles Roth at the Nexus 2025 conference, these reforms aim to attract alternative investment fund managers and foster innovation in the startup ecosystem, signaling “good news” for businesses, according to tax and corporate law experts David Maria and Stephanie Raffini of Pinsent Masons. A Competitive Edge for Fund Managers The new carried interest regime is designed to align Luxembourg with leading financial hubs by offering a clear and competitive tax structure for fund managers, particularly in private equity and venture capital. Carried interest, the performance-based share of profits earned by fund managers, has long been a focal point in European tax policy debates. Luxembourg’s reform addresses this by introducing a framework that provides tax certainty and incentives, making the Grand Duchy an attractive base for top-tier fund managers. “These changes position Luxembourg as a forward-thinking jurisdiction that balances competitiveness with compliance,” said Maria. “By modernizing the tax treatment of carried interest, Luxembourg is sending a strong signal to the global investment community that it remains a hub for innovation and growth.” The reform comes at a time when jurisdictions worldwide are reevaluating carried interest taxation. For instance, the UK recently increased its carried interest tax rate from 28% to 32% as an interim measure, with broader reforms planned for 2026, highlighting the competitive pressure Luxembourg faces. Luxembourg’s proactive approach aims to maintain its edge by offering a stable and attractive environment for fund management Empowering Startups Through Stock Option Incentives Alongside the carried interest reform, Luxembourg is introducing a special tax regime for stock options granted to startup employees. This initiative targets early-stage contributors who often accept lower salaries in exchange for equity stakes, a common practice in the startup world. The new tax framework aims to make these equity incentives more financially viable, encouraging talent retention and fostering innovation. “This is a game-changer for Luxembourg’s startup ecosystem,” Raffini noted. “By offering favorable tax treatment for stock options, the government is supporting the growth of high-potential companies and rewarding the individuals who drive their success.” This move builds on earlier reforms, such as the modernization of the expatriate tax regime and the introduction of a 75% tax exemption on bonuses for employees under 30, effective from January 2025. These measures reflect Luxembourg’s broader strategy to enhance its competitiveness and attract high-value-added jobs. The tax reforms are part of a comprehensive effort to ensure Luxembourg remains a leading financial hub amid global economic and technological shifts. At Nexus 2025, Minister Roth also highlighted the launch of the ‘Peak Accelerator,’ a new initiative to support the digitalization of investment fund services. Combined with recent legislative advancements, such as the adoption of blockchain laws and the transposition of the EU’s Markets in Crypto-Assets (MiCA) directive, Luxembourg is positioning itself at the forefront of digital finance. These developments complement other recent tax reforms, including a reduction in the corporate income tax rate from 17% to 16% for companies with taxable income above €200,000, lowering the aggregate tax rate in Luxembourg City to 23.87%. Additionally, changes to the minimum net wealth tax (NWT) regime, prompted by a 2023 Constitutional Court ruling, simplify the tax structure by basing NWT on a company’s total balance sheet, ranging from €535 to €4,815. These reforms enhance tax certainty and competitiveness for investors and businesses. Luxembourg’s reforms come at a pivotal moment as global financial centers compete to attract investment and talent. The carried interest reform aligns with international trends, such as the UK’s ongoing efforts to simplify and fairly tax carried interest while preserving competitiveness. However, Luxembourg’s approach stands out for its clarity and focus on attracting fund managers without compromising on regulatory standards. The startup tax regime also responds to the growing importance of innovation-driven economies. By incentivizing equity-based compensation, Luxembourg is fostering a vibrant startup ecosystem, complementing its established role as a hub for investment funds. This dual focus on traditional finance and emerging tech sectors underscores Luxembourg’s adaptability in a rapidly evolving global landscape. The carried interest and startup tax reforms are expected to take effect in 2025, pending parliamentary approval. Businesses and investors are encouraged to consult with tax authorities to navigate the new frameworks. As Luxembourg continues to diversify its financial sector—moving beyond its historical reliance on multinational tax structures—these reforms signal a commitment to resilience, innovation, and global competitiveness. “Luxembourg is not just keeping pace with global trends; it’s setting the standard,” said Raffini. “These reforms demonstrate a strategic vision to balance economic growth with fairness and transparency, ensuring Luxembourg remains a top destination for investment and innovation.” With its robust network of over 80 double tax treaties, cutting-edge digital finance initiatives, and now a modernized tax regime for carried interest and startups, Luxembourg is reinforcing its role as a dynamic and open economy at the crossroads of global trade and investment. For more information, contact the Luxembourg Ministry of Finance or visit pinsentmasons.com. pinsentmasons.com/out-law/news/luxembourg-carried-interest-tax-reform-business-benefits

Luxembourg, July 25, 2025 – Luxembourg has taken a bold step toward a sustainable future with the signing of the Climate Nexus Framework Convention, a groundbreaking initiative rooted in the Paris Agreement and the UN 2030 Agenda. Signed by representatives from the Ministry of the Environment, Climate and Biodiversity, the Ministry for Research and Higher Education, and the University of Luxembourg, the convention aligns national strategies with global science-policy platforms like the Intergovernmental Panel on Climate Change (IPCC) and the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES). This ambitious framework positions Luxembourg as a leader in science-driven climate governance and inclusive sustainability.A Holistic Approach to Climate ActionThe Climate Nexus Framework Convention introduces a comprehensive strategy to address interconnected challenges of climate, biodiversity, water, food, and social equity. Built around six “readiness” pillars, the initiative mobilizes Luxembourg’s scientific, educational, and policy communities to drive transformative projects in social, environmental, and engineering sciences. These pillars are: Social Readiness: Promotes citizen science, participatory governance through initiatives like the Klima Biergerrot, sustainable lifestyles, and youth engagement to foster broad societal involvement. Institutional Readiness: Enhances climate services and systemic risk monitoring using socio-environmental data, including mapping chemical substances harmful to human health and ecosystems. Technological Readiness: Advances Luxembourg’s goal of climate neutrality by 2050 through research and pilot projects in carbon capture, utilization, and storage (CCU/S) and nature-based solutions. Global Readiness: Supports the IPCC’s 7th Assessment Cycle on mitigation by hosting part of its technical support unit and fostering partnerships with the Global South, aligning with Luxembourg’s upcoming 2026-2030 international climate finance strategy. Academic Readiness: Strengthens interdisciplinary research and sustainability education across university programs. Climate Nexus Across Disciplines: Provides a flexible framework to address emerging crises and set adaptive priorities, supported by the newly established Luxembourg Centre for Socio-Environmental Systems (LCSES) under Prof. Ralf Seppelt.Empowering Interdisciplinary SolutionsAt the heart of the convention is the Climate Nexus approach, which emphasizes the interdependence of climate and socio-environmental systems. The University of Luxembourg will lead efforts to explore, test, and scale climate-related transformations through interdisciplinary research, data-driven analysis, and inclusive public engagement. Key initiatives include public outreach, youth education programs through the Scienteens Lab & Academy, and a new cross-university sustainability course to ensure widespread participation.The convention also aligns with Luxembourg’s 2023-2028 coalition agreement, accelerating national and global sustainability targets. The establishment of the LCSES in 2025 marks a significant milestone, enabling the University to integrate sustainability and climate action across its research, teaching, and public engagement activities.Leadership VoicesMinister of the Environment, Climate and Biodiversity Serge Wilmes hailed the convention as a national and global milestone. “With the Climate Nexus Framework Convention, Luxembourg further deepens its commitment to science-based climate action and inclusive sustainability,” he said. “By bridging research, international cooperation, education, and policy, we are laying the foundation for a climate-resilient future—one that empowers our youth, strengthens our institutions, and connects local innovation to global solutions. This initiative signals to the international community that Luxembourg is ready to lead by example.”Minister for Research and Higher Education Stéphanie Obertin emphasized the role of research in addressing societal challenges. “This convention reflects the government’s determination to put research at the service of society and tackle climate, environmental, and societal challenges concretely,” she stated. “As the minister responsible for the University of Luxembourg and public research centers, I commend the resolutely interdisciplinary approach of the Climate Nexus Framework Convention. It shows that science, reliable data, and collective engagement are essential to steer our country through the ecological and digital transitions.”Prof. Jens Kreisel, Rector of the University of Luxembourg, highlighted the university’s strategic focus. “Sustainable and societal development is one of our three main priorities, alongside digital transformation and medicine and health,” he said. “The creation of the Luxembourg Centre for Socio-Environmental Systems in 2025 was a decisive leap forward. Thanks to the support of the Ministry of the Environment, Climate and Biodiversity, this convention will deploy interdisciplinary research, teaching, and public engagement on sustainability and climate for the benefit of Luxembourg and beyond.”A Model for Global CollaborationThe Climate Nexus Framework Convention positions Luxembourg as a hub for innovative climate solutions, connecting local action to global challenges. By supporting the IPCC’s work and fostering partnerships with the Global South, Luxembourg is reinforcing its role in international climate governance. The convention’s emphasis on inclusive engagement, from citizen science to youth education, ensures that sustainability is a shared responsibility across society.As Luxembourg moves toward its 2050 climate neutrality goal, the convention provides a dynamic framework to navigate the complexities of the ecological and digital transitions. With its interdisciplinary and collaborative approach, the Climate Nexus Framework Convention sets a new standard for science-based climate action, offering a model for nations worldwide. For more information, contact the Ministry of the Environment, Climate and Biodiversity, the Ministry for Research and Higher Education, or the University of Luxembourg. Source: Press release by the Ministry of the Environment, Climate and Biodiversity / Ministry for Research and Higher Education / University of Luxembourg gouvernement.lu/en/actualites/toutes_actualites/communiques/2025/07-juillet/25-obertin-wilmes-convention.html

POST Luxembourg is pioneering a new chapter in financial services by modernizing its core banking system through a cloud-first approach designed to enhance inclusion, agility, and innovation. This transformation is led by Chief Enterprise Architect Jeronimo Azevedo, who emphasizes the organization's mission of delivering accessible banking services to all citizens, including vulnerable populations. At the heart of this initiative is the migration of POST’s core banking platform to Microsoft Azure cloud infrastructure. This shift replaces legacy on-premises systems that struggled with scalability and slow feature deployment. The move to the cloud has enabled POST Luxembourg to rapidly comply with evolving regulatory requirements such as the EU mandate for instant payments, a challenge that would have been difficult under previous systems. Azevedo underscores several benefits of this cloud adoption: faster development cycles, ease of adding or retiring functionalities, and seamless maintenance without service interruptions. By leveraging Azure’s marketplace capabilities, POST Luxembourg can flexibly integrate payment modules, databases, and other services, focusing initially on in-house application development while preparing to explore outsourced options. The transformation extends beyond technology. The company undertook significant change management to ease the transition for its IT teams, ensuring staff embraced the new cloud environment with full confidence. This meant a cultural and operational shift, fostering a mindset that sees cloud as an empowering tool rather than a loss of control. Moreover, POST Luxembourg’s expertise in telecommunications and ICT uniquely positions it to blend innovation with prudence. Their role as the first public sector institution in Luxembourg to fully migrate core banking to the cloud marks a milestone for the country’s financial ecosystem, setting an example for safe, scalable, and inclusive technology adoption. The new cloud infrastructure also enhances operational efficiency for developers and technicians, granting them anytime-anywhere access to data and integrated tools that reduce complexity. This agility translates directly to customers who benefit from uninterrupted services and faster rollout of new features. POST Luxembourg plans to further leverage cloud innovations such as AI-driven services made accessible under the Microsoft Azure Consumption Commitment. This will support its ongoing commitment to widen financial inclusion while keeping pace with rapid market changes and customer needs. This transformation journey places POST Luxembourg at the forefront of digital banking evolution—an inclusive, cloud-powered model that delivers both innovation and resilience in a changing global financial landscape. Join the exclusive network for expats in Luxembourg luxembourgexpats.lu

Luxembourg is making a strong push to expand its solar energy capacity with the launch of two fresh solar tenders designed to encourage investment and innovation in clean power projects. Investment Aid Tender: Supporting Solar Construction The first tender offers up to €20 million in investment aid to support the construction and operation of solar power plants. It is divided into three categories: rooftop solar installations on industrial and commercial buildings up to 3MW, lightweight solar systems for building integration up to 2MW, and solar projects designed for shaded areas up to 3MW. A new feature this year is a special focus on projects that include battery storage, which will receive higher subsidies to promote energy efficiency and grid stability. Interested companies have until mid-October to submit their applications. Operating Aid Tender: Long-Term Market Premium Contracts The second tender targets operating aid through 15-year market premium contracts. This means selected projects will receive payments based on the actual electricity supplied to the grid, encouraging efficient and ongoing production. This tender includes four main categories: solar projects at industrial sites, rooftop installations, projects located in shaded or water-covered areas, and innovative solar technologies like façade-integrated systems. The deadline for submitting bids is late November. Why It Matters These tenders align with Luxembourg’s broader climate and energy goals to increase renewable power generation and reduce carbon emissions. Solar capacity in the country has been growing rapidly, and these new support mechanisms aim to keep that momentum going while fostering innovation like battery storage — a key to managing variable solar power. Businesses interested in expanding their solar footprint in Luxembourg should consider: Exploring which tender suits their project type and size. Incorporating battery storage to maximize subsidy benefits. Preparing strong applications before the deadlines. These tenders present a timely opportunity for companies ready to invessolt in clean energy and help Luxembourg build a greener, more sustainable energy future. Join the exclusive network for expats in Luxembourg luxembourgexpats.lu

Consumer Confidence in Luxembourg Declines Markedly in Mid-2025: What It Means for the Economy Luxembourg is experiencing a notable decline in consumer confidence as of mid-2025, signaling increasing apprehension among households about their current and future financial situations as well as the broader economic outlook. This shift in sentiment reflects a growing sense of caution that may ultimately influence patterns of consumption, saving, and investment across the country, with potential ripple effects on overall economic performance. The Downturn in Consumer Mood Recent economic indicators show that consumer confidence has fallen sharply compared to earlier in the year. Many households are expressing concerns not only about their immediate financial health but also about the wider trajectory of the economy. This shift is the culmination of several converging factors that have unsettled individuals and families, prompting them to rethink their spending habits and financial plans. Underlying Causes At the heart of this confidence decline is Luxembourg’s economic structure, which is heavily dependent on the financial sector. This sector has confronted a period marked by volatility and uncertainty. Global stock markets have shown uneven performance, while interest rate adjustments by central banks have affected profitability for banks, fund managers, and insurance companies alike. This uncertainty within the financial industry has weighed heavily on public perception of economic stability. Beyond finance, other key sectors such as industry, manufacturing, and construction have not rebounded robustly from the setbacks caused by disruptions over the past few years. While there are positive signs emerging through business surveys, activity levels remain below pre-pandemic norms. Amid such a backdrop, households are also coping with pressures from rising living costs, including housing, energy, and everyday essentials, further constraining disposable income. Impact on Household Spending and Savings As confidence falters, consumers tend to become more reserved in their spending. In Luxembourg, this trend has already manifested in slight reductions in household expenditures during the early months of 2025. There is particular restraint around discretionary spending and major purchases, as households prioritize financial security in the face of uncertainty. Interestingly, despite these cautionary moves, average household expenses remain relatively high compared to earlier years, owing in part to inflationary pressures. However, savings rates have stayed elevated, indicating that many are choosing to build a financial cushion rather than increase consumption. This heightened savings behavior acts as a double-edged sword: while it offers families greater security, it may simultaneously dampen demand, which is a crucial driver of economic growth. Business Sentiment and Economic Growth Prospects The drop in consumer confidence is accompanied by a similar mood shift among businesses. Increasingly, companies are signaling caution about the future, reflecting concerns over demand consistency and costs. This wariness affects decisions around new investments, recruitment, and expansion, with many firms opting to maintain lean operations until greater clarity emerges. Economic growth forecasts for Luxembourg have been revised downward in light of these developments. While the country managed some recovery toward the end of 2024, the early months of 2025 have shown softness in several performance metrics. Experts anticipate that growth will remain subdued through the year, influenced by external economic pressures and internal adjustments within key sectors. Social and Policy Implications The slowdown in confidence and activity poses challenges for policymakers tasked with navigating a delicate balance. On one hand, there is a need to keep inflation in check and ensure fiscal sustainability; on the other, stimulating economic momentum to safeguard employment and business viability remains a priority. Targeted measures to support innovation, workforce development, and consumer purchasing power could be key in fostering resilience. From a societal perspective, prolonged economic uncertainty may affect public mood and social cohesion. If households continue to feel financially insecure, the pressures on mental health, savings adequacy, and overall quality of life could increase, potentially influencing political discourse and public expectations. Looking Ahead: Paths to Recovery Despite the current challenges, there is room for cautious optimism. If global markets stabilize and inflationary pressures ease, Luxembourg’s economy could regain footing in the medium term. Improvements in financial sector performance and revitalization in industry and services would support a return to healthier growth rates. Additionally, ongoing adjustments by businesses and consumers to new economic realities may eventually lead to more sustainable spending and investment patterns. For these outcomes to materialize, continued vigilance and adaptive policy responses will be essential. Public communication that fosters realistic expectations, coupled with initiatives that encourage innovation and inclusivity, can help rebuild confidence both among consumers and businesses. The marked decline in consumer confidence in Luxembourg during mid-2025 reflects widespread uncertainties touching financial stability, sectoral performance, and cost-of-living pressures. This shift has already impacted household spending behaviors and business outlooks, signaling a cautious economic phase ahead. While risks remain, the potential for recovery exists if conditions improve domestically and internationally. Ultimately, the evolving sentiment underscores the importance of balanced strategies that prioritize resilience and sustainable growth to guide Luxembourg through this period of adjustment. Join the exclusive network for expats in Luxembourg luxembourgexpats.lu

A quiet but powerful shift is underway in how people manage their relationships, time, and energy—one that challenges long-standing expectations about availability and self-sacrifice. Mentally healthy individuals are embracing a new philosophy: saying no to others is a vital part of saying yes to themselves. Far from selfishness, this approach reflects a deep understanding of personal limits and the need for self-care, yet it often gets misunderstood as bad manners or rejection. This “boundary revolution” reveals that constantly being available and agreeable can lead to burnout, resentment, and diminished capacity to genuinely support others. Those who adopt clearer boundaries recognize that trying to be everything to everyone ultimately means losing themselves. By prioritizing rest, solitude, and selective commitments, they preserve their emotional and mental resources. However, this change in behaviour disrupts social norms. Friends, family, and colleagues accustomed to unlimited availability often interpret the new boundaries as abandonment or selfishness. The willingness to decline invitations, step back from emotional labour, or say no without elaborate excuses unsettles those who see self-sacrifice as a measure of care and loyalty. Mentally healthy people prioritize sleep, alone time, and manageable social calendars. They no longer respond instantly to every message or volunteer for every request. This selective availability isn’t antisocial—it’s a realistic acknowledgment that emotional and mental energy is finite. Instead of spreading themselves thin, they focus on cultivating deeper, more meaningful connections by showing up fully where it truly matters. One major obstacle to embracing these boundaries is guilt. Many continue to overcommit because they fear disappointing others or being labelled selfish more than they fear personal burnout. Those who have worked through the guilt understand that setting limits occasionally upsets people—but self-preservation is essential for sustainable compassion. They know they can better support others only if they first care for themselves. This recalibration extends beyond personal life to work relationships and community involvement. Mentally healthy individuals stop being automatic crisis counsellors or emotional dumping grounds. Their refusal to overextend disrupts the implicit social contract of mutual overcommitment, highlighting that constant availability is neither necessary nor noble. The consequences are profound: some friendships and even family ties change or fade as unhealthy patterns of dependency dissolve. Yet paradoxically, those relationships that endure often strengthen, grounded in authenticity and balance rather than self-sacrifice. The “selfishness” of boundary-setting becomes a foundation for genuine intimacy and mutual respect. Moreover, this new approach to mental health contradicts assumptions about productivity. By doing less, mentally healthy people often accomplish more. They channel their energy into meaningful goals and prioritize restorative rest, boosting creativity and effectiveness. Their calm refusal to participate in exhaustion-fuelled busyness challenges cultural ideals that equate sacrifice with virtue. This boundary revolution signals a broader cultural shift toward redefining what it means to care for oneself and others. While it may feel uncomfortable for those used to traditional norms, the movement toward mental health–driven boundaries offer a pathway to resilience, authenticity, and deeper human connection—changing everything we thought we knew about kindness and self-respect. Join the exclusive network for expats in Luxembourg luxembourgexpats.lu

Waystone has expanded its Luxembourg UCITS white-label platform to include ETF capabilities following approval from Luxembourg's financial regulator, the Commission de Surveillance du Secteur Financier (CSSF). This development makes Waystone the first firm to offer a turnkey solution for ETFs domiciled in Luxembourg, enabling asset managers to launch, list, and manage investment strategies using an ETF wrapper within Waystone’s infrastructure. Paul Heffernan, CEO of Waystone ETFs, highlighted that the move was driven by client demand. Many international asset managers with existing Luxembourg infrastructure now prefer to domicile ETFs there instead of traditional mutual funds, offering them greater choice and flexibility. This development comes amid broader enhancements in Luxembourg’s regulatory environment for ETFs, including new laws extending subscription tax exemptions to active ETFs and introducing transparency regimes that make Luxembourg an increasingly attractive domicile for ETF providers. Waystone’s new ETF capabilities position it well to support asset managers seeking to capitalize on Luxembourg’s growing ETF market, including innovations such as Europe's first CLO ETF, for which Waystone also serves as management company. With over 20 years of experience in fund hosting and a strong European presence, Waystone continues to expand its comprehensive ETF platform, providing institutional investors and asset managers with robust infrastructure, regulatory compliance, and market access across key financial hubs How will Waystone's ETF capability impact asset managers' Luxembourg strategies Waystone's addition of ETF capabilities to its Luxembourg UCITS white-label platform is set to significantly impact asset managers' strategies by enabling them  to launch, list, and manage ETFs directly in Luxembourg using Waystone’s turnkey infrastructure. This development provides greater operational efficiency and flexibility, allowing asset managers who already have presence in Luxembourg to expand their offerings from mutual funds to ETFs without needing to set up new infrastructure elsewhere. Streamline ETF Market Entry: Managers can leverage Waystone’s proven infrastructure, regulatory expertise, and reporting technology to accelerate time to market and reduce operational complexity, especially important given Luxembourg’s evolving transparency and reporting requirements for ETFs. Access to Luxembourg’s Strategic Advantages: Luxembourg offers regulatory clarity, an efficient tax regime (including abolished subscription tax on active ETFs), and a strong ecosystem that supports active and complex ETF strategies, such as CLO ETFs. This makes domiciling ETFs there more attractive and cost-effective. Enhanced Cross-Border Distribution: Through Luxembourg’s UCITS framework and Waystone’s global support, asset managers can better tap into international institutional and retail investors, especially in Europe, Latin America, and Asia, enhancing distribution potential for their ETF products. Ability to Convert Mutual Funds to ETFs: Luxembourg’s regulatory framework facilitates converting existing mutual funds into ETFs and structures that allow ETF and non-ETF share classes within the same UCITS compartment, creating operational synergies and broadening distribution options. Improve transparency and Reporting: Waystone’s platform offers real-time NAV data, compliance dashboards, and secured centralized reporting adapted to Luxembourg’s regulatory demands, reducing managers’ operational burden while meeting rising investor transparency expectations. Waystone’s ETF capability empowers asset managers to seamlessly integrate ETF strategies into their Luxembourg operations with expert infrastructural and regulatory support, enabling faster product innovation, cost efficiencies, and enhanced cross-border market access. This aligns with rising demand for active and innovative ETFs in Europe, leveraging Luxembourg’s position as a leading ETF domicile. Join the exclusive network for expats in Luxembourg luxembourgexpats.lu

The Rise of the “Always-On” Culture As digital tools have reshaped how we work, the line between office and home life has become blurry. Email alerts and chat notifications make it easy for work to interrupt evenings and weekends. While remote work saved many jobs during the pandemic, it also sparked a new problem: many employees now find themselves answering messages or finishing tasks outside normal working hours. The Impact on Workers A growing body of evidence shows constant connectivity can come at a cost. People who often telework are more than twice as likely to exceed the maximum weekly working hours set by the EU compared to those who don’t work remotely. The EU’s Working Time Directive is clear about basic safeguards: Maximum working hours: 48 per week Minimum daily rest: 11 consecutive hours Paid annual leave: At least four weeks Ignoring these limits puts workers at risk for a range of health problems. Working long hours can erode concentration, cause fatigue, and lead to headaches, eye strain, anxiety, or even burnout. When work devices are always within reach, employees can struggle to find time for real rest and personal life. Why Parliament Is Taking Action Recognizing these challenges, the European Parliament has called for a legal framework to guarantee the “right to disconnect.” This would mean that employees aren't expected to answer work communications outside of scheduled working hours. Employers would need to respect these boundaries, and systems would need to be in place to protect workers who exercise this right from retaliation. To illustrate: Imagine an employee who signs off at 6 pm and chooses not to answer late-night emails from their manager. Under the Parliament’s vision, this person could do so without fear of reprisal—protecting not just their free time, but their mental and physical health. What Could Change for Employees and Employers If the right to disconnect becomes EU law, here’s what could happen: Workers could refuse after-hours calls, emails, or messages without penalty. Employers would not require or expect staff to be reachable off the clock. Any training or professional development outside regular hours would need proper compensation, and not impact rest time. National governments would need procedures to handle complaints and ensure no discrimination against those claiming their right to disconnect. Employees must set clear boundaries around your work hours. Communicate these limits to your team and manager. Don’t be afraid to use “Do Not Disturb” features to mute notifications outside your scheduled hours. Employers must establish policies making it clear when staff are expected to be available. Train managers to respect these boundaries and avoid scheduling calls or sending work emails after hours. Set up a fair process to address concerns if boundaries are not honored. Globally more than 300 million people suffer from depression and work-related mental disorders As more people work from home, the right to disconnect is emerging as a vital issue for worker well-being. With the Parliament pushing for new laws, there’s hope that employees across Europe will soon have greater protection—and that everyone can enjoy the benefits of flexible work, without sacrificing their right to rest. Read more: europarl.europa.eu/topics/en/article/20210121STO96103/parliament-wants-to-ensure-the-right-to-disconnect-from-work Join the exclusive network for expats in Luxembourg luxembourgexpats.lu

Luxembourg is positioning itself to win the race for global talent and investment with a fresh round of tax reforms set to take effect in 2025. The government’s changes are aimed at making life and business in this small European country more appealing for highly skilled international professionals, recent graduates, and companies seeking a competitive European base. A New Draw for International Professionals At the heart of the reforms is an updated “impatriate regime.” This policy allows new expatriate employees—those who haven’t lived, worked, or commuted from neighboring countries in the past five years—to enjoy a 50% income tax exemption, up to €400,000 per year. The incentive applies for as long as eight years, provided the employee spends most of their working time in Luxembourg and wasn’t hired simply to replace an ineligible worker. This creates a significant financial benefit for newcomers weighing a move to Luxembourg versus other European hotspots. Welcoming the Next Generation Not all the incentives are for experienced expats. Young professionals (under 30 years old when starting their first permanent job in Luxembourg) gain a tax break on bonuses—up to €5,000 a year tax-free for entry salaries, tapering as pay increases. Recognizing the high cost of city living, the government is also supporting rental affordability, allowing employers to give young workers a monthly rent allowance, with a portion exempt from tax. Corporate Edge: Lower Taxes and Easier Compliance Businesses see several wins as well. The headline corporate income tax rate drops a notch to 16%, cutting the overall effective rate in Luxembourg City and improving the country’s standing among its EU neighbors. Companies also benefit from simplified net wealth tax for holding and finance entities, and higher ceilings for profit-sharing bonuses—up to 30% of salary, with a firm-wide cap set to encourage broader participation. The move to mandatory electronic tax filings aims to cut red tape and streamline administration for HR and finance teams. How the Reforms Could Play Out Imagine a tech firm setting up European operations: with these new rules, it can recruit software engineers from abroad, ensuring half their salary up to €400,000 is tax-exempt. A recent graduate taking a first job could receive a meaningful bonus without heavy taxation, along with help covering rent. For company leadership, reduced overall tax burdens and easier compliance are strong reasons to consider Luxembourg over other European capitals. What Companies and Professionals Should Do Employers: Review expat compensation packages to take full advantage of the impatriate scheme and youth incentives. HR and Finance Teams: Prepare for mandatory e-filing and ensure eligibility checks are part of onboarding practices. Young and Highly Skilled Workers: Assess eligibility—are you new to Luxembourg, and do you meet the criteria for the new incentives? If so, Luxembourg might be your most lucrative move. The Big Picture The 2025 reforms are more than just tax tweaks—they are a strategic play to stem brain drain, foster innovation, and ensure long-term growth. By making it cheaper and more rewarding for professionals and businesses to call Luxembourg home, the country is fortifying its status as a top-tier destination for the world’s brightest minds and most ambitious companies.

Luxembourg’s SES Takes Center Stage: Shaping the Future of Satellite Communications A fascinating chapter in global satellite communications is unfolding—from the heart of Luxembourg. SES, headquarted in Betzdorf, is closing a game-changing deal to acquire Intelsat in a $3.1 billion acquisition. This move received the green light from the US Federal Communications Commission, capping off the final regulatory hurdles after SES won the European Commission’s unconditional approval in June. With this, Luxembourg is being catapulted into the limelight of the space and satellite industry. Why This Matters Global Competition Heats Up: The SES-Intelsat merger isn't just a business transaction; it’s about strengthening competition in a rapidly evolving marketplace. By combining assets and expertise, SES is poised to become a more robust player in the satellite world, spanning multiple orbits and offering cutting-edge services. Lower Costs, Better Service: The US regulators highlighted that this deal could lower costs, improve service quality, and encourage further investment. Imagine more reliable satellite connections—whether streaming from rural towns or managing logistics from ships at sea. Luxembourg’s Growing Star Power Luxembourg, often recognized for its financial prowess, is now making waves as a true heavyweight in space technology. SES’s strategic leap puts this small nation front and center, showing how even a modestly-sized country can drive global change through innovation and vision. The SES deal isn’t just about corporate growth—it’s about shaping how the world stays connected, communicates, and secures essential infrastructure. Actionable Takeaways For Businesses: Keep an eye on Luxembourg-based companies—SES’s example reveals how smart partnerships can push even traditional sectors into new eras. For Innovators: Take inspiration from SES’s bold steps. Sometimes, being based in a small country can be a big advantage, allowing for agility and international reach. For Policy Makers: This merger underscores the importance of strategic investments in technology, even for countries not typically seen as industry giants. SES has signalled its intent to formally close the deal within days. Once finalized, you can expect more exciting announcements about expanded satellite services, new partnerships, and the ripple effects across both European and global communications networks. Luxembourg’s star just got a bit brighter in the space economy—and the world is watching. Join Luxembourg Expats Online for Free : luxembourgexpats.lu