Luxembourg is a tiny nation at the heart of Europe. Whilst not much about it is known, there are still amazing facts about Luxembourgian culture that are sure to impress you!
10. It’s the only Grand Duchy left standing
We’ve all heard of the world’s most famous monarchies, the British, the Spanish, the Saudis. But you probably didn’t realise that Luxembourg too is a monarchy! Although, this monarchy is structured slightly differently to most other monarchies!
Throughout the 19th century, many duchies, with dukes who wished to be kings, but never could, had their duchy elevated to the title of a Grand Duchy. These new Grand Duchies (rules over by the now new Grand Dukes) would be autonomous from other states, but weren’t as prestigious as a monarchy.
As such, many were abandoned throughout the course of the late 19th and early 20th centuries. You’ve probably never heard of the Grand Duchy of Baden, or the Grand Duchy of Tuscany or Grand Duchy or Hesse!
But only Luxembourg has remained into the 21st century, operating a British-style monarchy that sees them loved by the people!
9. Low taxes!
No body likes paying taxes. And Luxembourg certainly doesn’t either!
Perhaps, it is due to Luxembourg’s apparent lack of natural resources, or the presence of many large financially-savvy funds, Luxembourg’s corporate (and personal) tax rate is only 24% in total!
This is something that is incredibly low in comparison with the nearly 60% of the UK! (Including corporate and income taxes!)
Most people tend to know this as one of the only facts about Luxembourg they know! This is often due to the knowledge that many global corporation’s European headquarters are in Luxembourg for this favourable tax rate!
8. EU founder
Perhaps a fact you didn’t know, but Luxembourg is indeed an EU founder. In 1951, Luxembourg was a founder of the European Coal and Steel Community- a community of six European nations designed to strengthen coal and steel-producing ties.
In 1957 this community had grown beyond just coal and steel, and became the European Economic Community, and in 1993, rebranded itself as the European Union.
For Luxembourg, this is a great achievement, and something it likes to let the world know about! For such a tiny nation, contributing to something so big, it is just massive!
7. Private banking heaven
Perhaps one of the best facts about Luxembourg, is that it is the private banking heaven of the world. In many ways, Luxembourg shares much in common with Switzerland, as Luxembourg is internationally renowned for its banking institutions!
However, unlike Switzerland- which is known for its bank secrecy laws and well known personal banking systems, Luxembourg is the complete opposite. Rather than tailoring to the average rich American or other foreigner, Luxembourg tailors European elites.
How? Private banking.
Luxembourg houses some of Europe’s largest, oldest and most respected private banks in the entire world! These types of banks are often best suited to the old-style European nobility!
6. Languages
Like many countries in the powder keg of Europe, Luxembourg has several official languages.
For starters, Luxembourg has a large influx of European immigrants, noticeably from the UK, Italy and Portugal. Something that started in the late 19th and early 20th centuries!
Luxembourg is also in the cross hares of two great European powers- France and Germany. This means that many towns, especially those on the border, and those near major city centres are bilingual.
Indeed, Luxembourgers have to know how to speak Luxembourgish, French and German! They even have a cray language-based education system too! (More on that in a minute!)
5. “Fund capital of the world”
Due to Luxembourg’s low corporate taxes, and heavy focus on the finance and banking industries, Luxembourg has come to be known as the “Fund capital of the world”.
This is due in part to the success of its biggest fund managers, who are as internationally renowned as their American counterparts. It is also due to the number of funds in Luxembourg. Outside of the US, Luxembourg has the most funds in the entire world!
And this shows no sign of stopping anytime soon!
Funds like:
- Luxembourg Fund
- PWC Luxembourg (Luxembourg offices of PWC)
- ALFI
Are some of the most respected hedge funds in all of the world!
4. Full Democracy
Luxembourg is often described as a “Full Democracy” meaning that all the needs of the government are met by the people and vice versa.
The Grand Duke is an inherited position, and unlike many constitutional monarchs in Europe, he is involved in the politics of the country. The Grand Duke is the head of the Luxembourgian Parliament, which is elected democratically.
The Grand Duke also appoints the Council of State, made up of sixty ordinary citizens picked out by the Grand Duke. This latter body serves to reinforce the people’s will, as these people literally speak for the rest of the people. Regardless of whether they can (to have) voted or not.
3. National shame…
Like most European nations, Luxembourg carries a mark of national shame. For Germany, it is the first half of the 20th Century. For Italy, it is the Fascist dictatorship, as is the same with Spain.
For Luxembourg, the mark of shame comes in the form of stolen territory. One of the least well known facts about Luxembourg is that it once had quadruple the amount of land it has currently.
However, during the formations of Germany, Belgium and the Netherlands, Luxembourg lost a lot of its territory.
Luxembourg lost a lot of its territory to Belgium in the form of Belgium’s aptly named “Luxembourg province”. Which is the territory taken from Luxembourg by Belgium.
2. Multilingual education system
Probably one of the most mind blowing facts about Luxembourg is their education system. Let’s just say, it is completely crazy!
For most of their primary education, they are taught in Luxembourgish. For the last part of their primary education, the language changes into German. And then for their secondary and university education, the language is in French!
Under Luxembourgian law, you must obtain a certification in all three languages in order to graduate from their secondary education! Although, many Luxembourgians fail to do so.
To add more complexity to the mix, English is also compulsory as a foreign language to study. This means that a newly graduated Luxembourger should be able to hold conversations in English, French, German and Luxembourgish- an accomplishment by any means!
1. Alternating articles
We’ve already spoken about the fact that Luxembourg is an incredibly language-diverse place. We’ve also talked about how all Luxembourgers are supposed to be able to speak, read and write in all three languages.
This is also the same for their media. Many national Luxembourgish newspapers are in both languages. But not in two separate papers as you may think. No, in the same newspaper, there will be different articles in both French and German.
This means that it is essential to learn both to stay up-to-date with the goings-on of the world!
Got any more facts about Luxembourg? Remember, if your business is looking to expand into the Luxembourg market, our translation services are world class!