Like the plaster stuck to Captain Haddock’s nose in the Tintin adventure “The Calculus Affair,” the label of tax haven sticks to Luxembourg. This observation comes from some Luxembourgers living abroad who work in business. Based in Paris, lawyer Pierre-Sébastien Thill is used to prejudices such as “only seeing the activity linked to tax advantages in Luxembourg without any consideration for the industrial and tertiary sector. Very few know the influence of the steel industry in the country’s economic development at the time of the industrial revolution.” And when it comes to prejudices, this specialist in international taxation says, “many French people are only surpassed by some Americans.”
“A lot of people in the United States don’t actually know Luxembourg, let alone where it is located,” confirms New York-based lawyer Bob Rivollier. “Those who haven’t been to Luxembourg, but know of it, generally think of it as a major financial centre where people don’t pay taxes. If only that was true!”
Fewer people mention Luxembourg as a tax haven now than in the past. However, the idea isn’t gone yet.
Antoine Kremer, a representative in Brussels for the Luxembourg Bankers’ Association (ABBL), the insurers and reinsurers association Aca and the Association of the Luxembourg Fund Industry (Alfi), notes that “fewer people mention Luxembourg as a tax haven now than in the past. However, the idea isn’t gone yet. When I talk to European Commission reps, it’s clear: Luxembourg is an international financial centre for many reasons, not just taxes. In the European Parliament, on the other hand, prejudices die harder.”
The lobbyist for the Luxembourg financial centre points to the influence of the national press. “If the latter relies on perceptions dating back 10 or 20 years and repeats them tirelessly, these ideas end up taking root. A member of the European Parliament mainly reads their country’s top press and aligns with popular views.” He notes that parliamentarians from Luxembourg’s neighbours often share these biases since their national press supports them.
Fortunately, this perception is not set in stone. Kremer highlights an important change, crediting financial centre players and diplomats for their educational efforts. He is also pleased that “Luxembourg figures have made a mark in Europe.” Pierre Werner, a notable example, is still remembered for his report on the economic and monetary union, which came before the euro’s creation. At the European Parliament, many also remember Astrid Lulling (CSV), who served as an MEP from 1965 to 1974 and from 1989 to 2014. A fun fact: the MEPs’ lounge in Brussels is named after her.
Few preconceived ideas
Venture capital specialist Christian Jung, based in London, studied and worked for a long time in Germany. Whilst he has noticed that “many have only a vague idea of what life in Luxembourg is actually like beyond its financial sector,” he says he has never been confronted with prejudice or condescension. “The perception of Luxembourg is overwhelmingly positive. People generally see it as a wealthy, stable and well-organised country, often associating it with banking, the EU institutions and a high quality of life.” According to Jung, who is in his forties, there are not many stereotypes about Luxembourg. “But if I had to mention one, it would be the assumption that everyone in Luxembourg is wealthy by default. Whilst Luxembourg is a prosperous country, the reality is more nuanced. Individual wealth on a much larger scale exists in other countries where it is, in part, available for investments in social causes and underfunded sectors through family offices.”
Across the Atlantic, “I’ve met very few people who have any preconception about Luxembourg,” says Jeff Desom, a director, screenwriter and visual effects supervisor based in Los Angeles. “The US is a nation of immigrants. Most people are from somewhere else. Coming from a place that is relatively unknown to most makes people curious, if anything. But I have never had the feeling that anyone is looking down on us. If anything, I get the opposite quite a lot. People in Luxembourg have a surprisingly biased view of the US and its citizens.”
I am also proud of our cultural heritage and the country’s ability to reinvent itself throughout history by transitioning from an agricultural economy to an industrial powerhouse and then a global financial centre.
When the New York-based entrepreneur Liz Breuer shares photos of Luxembourg with her local circle, “they find it cute and beautiful. For them, it’s a picturesque and idyllic place, but one that doesn’t seem particularly dynamic or exciting.” Patrick Augustin, a professor at McGill University in Montreal, has also heard the idea that Luxembourg is “boring.” “Of course, it is not comparable to major metropolitan cities like London or New York, but for its size, I think the country punches above its weight in terms of cultural and social activities,” says the academic.
Informal ambassadors
Luxembourgers living abroad make great ambassadors. They have a positive view of their country. From Paris, Thill says he perceives Luxembourg “with admiration and respect. The accomplishment is remarkable given the size of the country and the challenges of the current world.” “Living abroad hasn’t changed my identity, but it has deepened my appreciation for the many advantages Luxembourg offers--its political and economic stability, the social safety, as well as the overall quality of life and ease of mind a very large part of its population is able to enjoy,” notes Jung.
Isabelle Crauser, 40, has lived in Switzerland for ten years, where she works in the pharmaceutical industry. “Luxembourg has certainly evolved a lot since my childhood. I grew up in Luxembourg City, which has developed into a very dynamic and cosmopolitan city. Walking around the city, multilingualism is omnipresent, cultures mix, it’s beautiful to see.” In Montreal, Augustin sees himself as an informal ambassador for Luxembourg. “I often find myself talking about the country’s wineries in the Moselle, the hiking trails in the Mullerthal or Esch-sur-Sûre, or events like the party that takes place on national day. I am also proud of our cultural heritage and the country’s ability to reinvent itself throughout history by transitioning from an agricultural economy to an industrial powerhouse and then a global financial centre.”
It is a true multicultural melting pot given the high percentage of non-natives living and working there.
Another self-proclaimed ambassador, Rivollier in New York describes his homeland this way: “Luxembourg is a small country--about the size of Rhode Island--that generally offers all the things you can find elsewhere, just not in the same abundance. The quality of life is quite high and it is a great place to raise a family. The level of education is similarly quite high and education also tends to be inexpensive. It is a true multicultural melting pot given the high percentage of non-natives living and working there. It is very safe and stable, and there are great professional opportunities (and not just within financial services).”
Luxembourgers “stuck in their comfort zone”
Also in New York, Breuer has a more nuanced perception of her country of origin. While “the startup ecosystem has evolved considerably over the last decade,” the entrepreneur cannot help but notice “the difference in pace between Luxembourg and New York. A combination of bureaucratic barriers and deeply rooted cultural norms still hinders the rise of new companies and prevents them from achieving exponential growth.” And to clarify her thinking, she adds: “Luxembourgers often evolve in a middle ground, stuck in their comfort zone while complaining about it. I think that once we understand that we need to talk less and act more, we will move much faster. Failure is inevitable, but it does not mark the end of the road. I would have liked us to learn to better accept this process of trial and error, starting with the way we talk about it at school. Once this mentality is embedded in the culture, it will be easier for companies to adopt this dynamic.”
It is also inspiring to see how much Luxembourg has evolved over the last decade.
When she talks about Luxembourg, Breuer rather highlights the ease of developing and maintaining her professional network there: “The connections are fast and natural. It is also inspiring to see how much Luxembourg has evolved over the last decade, becoming a real hub of innovation that celebrates young entrepreneurs. We often have the reputation of being a financial centre, and even if this remains true, I would like to reframe this narrative and show the wide range of creativity and business acumen that exists in Luxembourg minds.”
“A safe haven, for now”
In Los Angeles, Desom also sees both sides of the coin. On the one hand, the visual effects specialist appreciates the comforting side of his native country: “In times when the world news is a bit crazy, I pull up a Luxembourg news outlet and read the headlines. I find it very comforting to read about some road closures or union disputes in Luxembourg. It seems like the problems of the world have yet to arrive in Luxembourg. It’s a safe haven, for now.”
I have high hopes that Luxembourg, because of its small size, is more adaptable.
On the other hand, Desom, who’s in his forties, finds that “the system and especially education in the [United] States promotes more independent thinking and entrepreneurship. In Luxembourg we tend to put people that think outside the box into their place and discourage them from exploring new avenues (at least that’s how I experienced it during my college years). It’s in our DNA to keep things as they are. ‘Mir wëlle bleiwe wat mir sinn’ is a double-edged sword. It has helped us maintain our identity and culture throughout the ages, but it also stifles progress when it comes to keeping up with the times and adapting to a world that is constantly changing.”
“But I have high hopes that Luxembourg, because of its small size, is more adaptable. We’ve proven to be resilient so I’m confident that we can cope. It will look different from today’s Luxembourg but then again, if Siegfried came back tomorrow, I don’t think he would recognise his castle either,” concludes Desom.
Luxembourgers in global business
The CEO of bus manufacturer Wrightbus (Northern Ireland), Jean-Marc Gales, and the former president of premium wine specialist Moët Hennessy (France), Philippe Schaus, are among the most prominent Luxembourg leaders active internationally. Another experienced leader is David Heyman, who serves as the non-executive director at King’s College Hospital London in Dubai, UAE. Julia De Toffoli has a unique background in fashion design and management. She is now the collection director at Rimowa, a luggage company, in Paris. Other examples include Lou Reckinger, strategy & portfolio manager at NZZ (Switzerland); Michelle Hollman, data migration lead at Kiwa (Netherlands); and Anne-Sophie Hoffmann aka Sophie, vegan food stylist & recipe creator in Berlin.
In the world of finance
Many Luxembourgers abroad are active in finance. One of the best known is Michel Liès, former CEO of reinsurer Swiss Re and now chairman of the board of insurer Zurich. Based in Hong Kong, Frederic Neumann, chief Asia economist and co-head global research Asia at HSBC, is a popular media commentator. Others include Philippe Borens, partner banking & finance at Schellenberg Wittmer in Zurich; Tom Alzin, spokesman of the board of management at Deutsche Beteiligungs AG in Frankfurt; and Yves Sand, director European acquisitions at Harrison Street Real Estate Capital in London.
Other Luxembourgers who stand out abroad
Health: Judith Michels, medical oncologist at Gustave Roussy cancer centre in Villejuif; Patrice Grehten, senior physician in paediatric radiology at Kinderspital Zurich; Martine Baldassi, psychologist in Montreal.
Institutions: Anne Soisson, associate programme specialist at Unesco in Paris; Raoul Ueberecken, director at the Council of the European Union in Brussels; François Heisbourg, senior adviser for Europe at the International Institute for Strategic Studies (IISS) in London.
Academia: Jean-Pierre Zigrand, associate professor of finance at the London School of Economics and Political Science (LSE); Joël Wagner, professor of actuarial science at HEC Lausanne; Bernard Ries, vice rector at the University of Fribourg.
9,778
This is the number of students who received a grant from the Luxembourg government and pursued higher education in France during the 2023/2024 academic year (including both residents and non-residents), according to the ministry of research and higher education. Belgium (7,511 students) and Germany (5,600 students) were the second and third most popular destinations for Luxembourg students in 2023/2024, followed by the grand duchy itself (4,445 students).
This article was written for the of Paperjam magazine, published on 26 March. The content is produced exclusively for the magazine. It is published on the site to contribute to the full Paperjam archive. .
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