Luxembourg Attractiveness Survey 2026

This is the fifth year we are conducting this research in Luxembourg, and more than two decades since EY began tracking foreign direct investment across Europe. Over that time, investment cycles have shifted, priorities have changed, and new risks have emerged. What has remained constant is the need to look beyond headlines and understand how decisions are really made.

This year’s findings highlight a turning point for Luxembourg. The country has long been synonymous with trust – built on political stability, regulatory credibility and a deeply embedded culture of investor protection. It is also one of the most diverse and connected countries in Europe, with a uniquely international workforce and tightly integrated cross‑border model. As home to the largest fund industry in Europe, Luxembourg already plays a central role in the continent’s financial ecosystem. However, this position cannot be taken for granted. A growing number of competing jurisdictions, both within Europe and globally, are actively strengthening their own value propositions. Maintaining Luxembourg’s unique position will require a continued alignment of economic, political and regulatory forces, ensuring the country remains agile, collaborative and forward-looking in the face of evolving investor expectations.

The question now is how that role evolves. Our findings make clear that Luxembourg is moving into a new phase, from being a highly effective hub for the services supporting the fund industry to positioning itself as a strategic decision‑making center. Advances in AI, digital finance and data‑driven services create an opportunity to move further up the value chain, anchoring higher‑value activities and leadership functions.

Crucially, this evolution will not happen in isolation. Luxembourg’s future competitiveness will depend not only on its domestic strengths, but on its ability to deepen strategic partnerships with other countries, leveraging cross‑border talent pools, research ecosystems, industrial capabilities and energy infrastructures. In a more selective European investment landscape, our collaboration, not scale, will be a decisive advantage. 

As Europe enters a more cautious and strategic investment era, Luxembourg’s challenge is clear: to translate trust into execution, stability into substance, and connectivity into leadership. This report is intended to inform that conversation, grounded in evidence, shaped by long‑term perspective, and focused firmly on what comes next.