The Luxembourg shipping business has been saved
The Luxembourg shipping business
Closely connected to the sea, whatever the distance
In this report, the intention is, rather than offering an exhaustive review of Luxembourg’s maritime regulatory and legislative regime, to provide a useful guide to the numerous legal and tax advantages offered to maritime companies operating under the Luxembourg ensign.
In the early 1990s, Luxembourg took the first steps towards what today is recognised worldwide as a successful maritime regime. After ratifying the majority of conventions governing safety, working conditions and environmental protection, Luxembourg rose to the ranks of European nations possessing a serious and attractive maritime flag.
Over the years, more and more groups operating in the maritime business have discovered the unique balance that the Luxembourg maritime regime strikes between regulation and flexibility.
As pointed out by the European Commission in its Green Book on a new maritime policy for the Union, even if most maritime activities are concentrated around coastal areas, the impacts of the maritime economy reach far beyond the coastal regions. A well-established connection with maritime actors in landlocked regions is therefore of great importance.
The Luxembourg maritime regime is the perfect example of a maritime business operating away from the coastal area, bringing the maritime economy inland, yet still keeping close contact with the coastline as the Grand Duchy has major European ports within a reach of less than 300 kilometres. Moreover, the Luxembourg’s maritime industry benefits from a number of other critical resources, including one of the largest financial sectors in Europe enabling it to offer high quality and customised financing solutions to meet maritime needs.
The shipping business should be considered in the perspective of the development of the logistics sector, i.e. to enhance and foster Luxembourg as a major intercontinental logistics hub in Europe for high added-value services.