Relocation Country Guide:

January 2018 Relocation and International Assignment Trends and Practices

The Grand Duchy of Luxembourg, is a small, landlocked country sandwiched between , and . Luxembourg is working hard to be among the top five alternative destinations for potential moves linked to Brexit. In the past year, the government has invested in new local English-speaking schools, increased transportation, and refurbished new areas as alternatives to the locations currently popular with expatriates.

Often voted in surveys as one of the world’s most desirable places to live, Luxembourg enjoys an excellent standard of living. Input from Cartus Global Supply Chain and our Destination Services Providers on the ground in Luxembourg points to several key areas of importance to the expatriate community: looking for a rental property, finding a school, transportation, language, cultural issues and climate. These areas are all addressed, with best practice recommendations, to help HR/mobility managers as they consider policies for their assignees. February 2018 Relocation Country Guide: LUXEMBOURG

RENTAL MARKET The rental market in Luxembourg is a landlord’s market. Furnished apartments are low in availability, as are three- four bedroom unfurnished apartments, while one-two bedroom apartments are easier to source. One-two bedroom houses, whether terraced, semi-detached or free standing, are typically limited, while those with at least three bedrooms have greater availability. All houses in gated compounds are in short supply.

For many years, demand has outstripped supply, therefore, decisions need to be made very fast and no rent concessions can be negotiated. While the demand for property over the past 12 months has increased, as you would expect, vacancy rates have decreased. Over the same period, rental prices have increased by 11 percent.

Rental Rates and Charges The cost of accommodation varies greatly by location. Below is an outline of the average rental rates, per month:

Apartment Rental rates House Rental rates 1 Bedroom EUR 950 – 2,100 1 Bedroom Rare 2 Bedroom EUR 1,050 – 3,000 2 Bedroom EUR 1,050 – 2,500 3 Bedroom EUR 1,900 – 3,300 3 Bedroom EUR 1,050 – 3,700 4 Bedroom Rare 4 Bedroom EUR 1,050 – 4,200

Since the market is competitive, landlords are very selective. Landlords often receive several applicants for the same rental unit and it is ultimately the landlord’s decision who he/she accepts. The selection process is not always based on objective factors and they are not required to provide a reason for declining an assignee’s rental application. Family profile, income, behaviour, etc. are all factors that could be considered by a landlord. Payslips will be very often requested as proof of means.

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Negotiating with Landlords/Real Estate Agents TOP TIPS FOR SUCCESS Due to the lack of supply of properties, rental prices are typically non-negotiable. Security deposits are no longer protected by • Assignees are advised to be ready law and a landlord can ask for any amount (this is now part of the to make quick decisions and to be lease negotiation). Leases in Luxembourg are rarely modified, as willing to make concessions, i.e. be landlords do not tend to be flexible about making changes to flexible in their search criteria and their proposed terms. International assignees may offer higher accept that properties may not tick rent payments to strengthen their applications, and items such as all their boxes. gardening, cleaning and extra items may be negotiated. • Housing allowances need to be realistic vis-à-vis rental market Leases conditions. • Companies should encourage The two most popular property leases are: assignees to maximise their housing • Apartments: one to two years allowances to find a property that • Houses: two to three years best fits their search criteria.

Repainting clause: This is a standard clause. When the tenant leaves the property within three years, the property will have to be repainted entirely. The tenant usually pays for this work and the landlord commissions it, however the landlord will typically insist that this is the tenant’s responsibility.

Searching for a Home Listings: Most rentals are listed by real estate agencies, who each manage their own portfolio of properties. Although there is no multiple listings service for Luxembourg, the website https://www.athome.lu gives a good indication of value for money (representing 60% of what is available on the market).

Viewing time: Most agents will not show properties on weekends, so house hunting is typically during weekdays until 17:00.

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Required documents: Rental application requirements vary by landlord and agency, so the assignee should be prepared TOP TIPS FOR SUCCESS to provide: copy of passport, employment contract, payslips, • Due to limited availability, as soon bank account information, and family profile (number of adults, as the move to Luxembourg is children, and pets). confirmed, relocating families should make school search their number Pets and smokers: Many landlords will not accept smokers or one priority. prospective tenants with pets due to “Code of behaviour in the residence” which is accepted by all landlords, residents and the managing company, so ask prior to viewing if applicable.

The table below shows the popular expatriate neighbourhoods:

Name of Typical Typical Property Neighbourhood Location Residents Property Types Availability Budget Limpersberg Close to Couples/Singles Apartments Low High end Belair Close to Luxembourg City Families/Couples Apartments/houses Low High end Kirchberg Close to Luxembourg City Couples/singles Apartments Low High end Bertrange Close to Luxembourg City Families Houses Moderate Moderate Luxembourg Station area In Luxembourg City All Apartments Moderate Moderate

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SCHOOLING In the Grand Duchy, school attendance is compulsory between the ages of four and 16 years. International/English- speaking schools are very popular and availability might be an issue, especially for children with special needs or learning disorders. Local schools will teach in either German, French or (a German-Moselle-Frankish dialect).

Popular international schools include: • The European School — http://www.euroschool.lu • International School of Luxembourg — http://www.islux.lu • St. George’s International School — http://www.st-georges.lu • Lycée Michel Lucius — http://www.lml.lu • Over the Rainbow School — http://overtherainbow.lu/ • l’École Internationale de Differdange (state School) — http://portal.education.lu/eid • Lycée International School Michel Luciucs (state school) — http://www.lml.lu/

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TRANSPORTATION TOP TIPS FOR SUCCESS Luxembourg has an excellent transport infrastructure and benefits • If a relocating family selects a from its central position in northern Continental . The remote area, a second car would capital boasts a good transportation network, though remote be extremely useful, particularly for areas are not so well served by school runs. public transport. • Assignees can buy combi tickets for either train or bus, and bus services Public Transportation are reduced at weekends. Public is cheap and efficient, with buses • As many of the transportation and trains linking major towns and destinations sites are only in French or German, in Germany, France and Belgium. Most Luxembourgers, however, learning some key phrases is strongly prefer to drive. Within Luxembourg City, where recommended although there is most business is likely to take place, buses and taxis are available, an English-language interface for with various passes and discount schemes on offer for buses. timetables.

Driving Nowhere in Luxembourg is more than an hour’s drive from the capital. Nevertheless, commuter traffic can be heavy, making this driving across the country in the rush hour unrealistic.

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VISA AND IMMIGRATION

EU/EEA and Swiss Citizens EU/EEA and Swiss citizens do not need a work permit or visa to work in Luxembourg. If they intend to stay for more than 90 days, they must declare their arrival at the Municipal Office (Commune) in their place of residence within eight days.

Non-EU Citizens An employer in Luxembourg may not employ a non-EU citizen until they have advertised the position at the Luxembourg employment office. Non-EU citizens who have been offered a job must apply for a temporary residence certificate at the Ministry of Foreign Affairs before arrival in Luxembourg and will have to register once they arrive in the country. Processing time can take up to three months. Certain nationalities will also require a visa. Non-EU citizens may not be in the country while their immigration is granted. Non-EU citizens need to go through a medical check.

In 2017, the Luxembourg government passed a law to streamline the immigration process for EU Blue Card holders and Intra-Company Transfer (ICT) permits.

Challenges: In the peak season (summer months and December) the Ministry can have some delays which can extend the application process up to 3 months.

Organizations are advised to seek advice from their immigration providers to ensure they remain compliant.

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LANGUAGE TOP TIPS FOR SUCCESS Lëtzeburgesch, or Luxembourgish, a German-Moselle-Frankish • A wide selection of organizations dialect, became the officially recognised national language in offer welcome classes — attending 1984. French and German are generally used for administrative one of those and learning the basics and commercial purposes. Many Luxembourgers also speak would be a worthwhile investment English and many children graduate from school fluent in three of time. languages. The native Luxembourgish, however, is more of a spoken language and is not used in business, which tends to be • Assignees should check which conducted language (usually French) is the most in French. appropriate for giving presentations.

Assignees should use the formal ‘vous’ if speaking French (or ‘Sie’ in German) until invited to switch to the familiar form. It is advised not to make assumptions about anybody’s mother tongue when addressing them, as many Luxembourgers have a French sounding first name and German sounding surname. Many Luxembourgers change their first names to reflect their own dialect and some may double-barrel their surnames to reflect both their parents’ names.

Luxembourg can be a confusing place for the visitor. The news is in French and German, with some newspaper items in Luxembourgish. A shopkeeper will address a stranger in French in the middle of a conversation that is taking place with a local in Luxembourgish. TV programmes are in German, French or English. The visitor, however, can get by with French and/or German and if necessary, English.

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CULTURAL ISSUES A dignified demeanour and good manners are the single best way to make a good impression. Smart, stylish dress will be noticed, as will a formal, non-emotional, but friendly approach.

Over-familiarity is embarrassing to Luxembourgers and it is essential to maintain the social fabric by, for example, greeting everybody in a room but keeping to surnames and the polite form of address. Men and women should be treated equally and hold equal rank in business.

Relationships. Luxembourgers are private people and some see them as aloof, but their typical lack of enquiry into another person’s well-being and personal life is merely a way of respecting privacy. Business and personal life are kept strictly separate and society is formal.

When greeting a colleague or business contact, a firm handshake and eye contact are sufficient. Women and other women, or women and men may exchange three kisses on the cheek, but only if they know each other well. Even people who are friendly outside work may maintain a more formal relationship in the workplace.

Communication. Luxembourgers are direct, but diplomatic and subtle communicators; their inherent sense of politeness will prevent them from saying something that might cause offence. Once people know each other well, they will be less inhibited about criticising one another. Nonetheless, protecting the relationship is paramount, and the same is expected in return.

Luxembourg companies have steep hierarchies, and those in senior positions expect to be shown respect. Assignees should address others using their surnames until invited to do otherwise. Surnames with the honorific titles Monsieur or Madame are used in most social situations, or ‘doctor’ or ‘professor’ if relevant; since academic qualifications are admired.

Body language should be discreet and low-key. Luxembourgers are not given to wild gestures or excessive physical contact — grabbing someone’s arm to make a point, or slapping them on the back may cause embarrassment and offence.

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Meetings Time Keeping Meetings should be planned well in advance and Luxembourgers work long hours and time is taken scheduled to avoid July and August if possible, as well seriously; wasting someone’s time by being late is as the period around Christmas and Easter. A meeting considered rude. Agendas and schedules are taken literally. should follow an agenda, which should be distributed Like most north Europeans, Luxembourgers take a mono- in advance so that people can prepare. In many cases, chronic approach to time, which means they will only give decisions will be taken outside a meeting, either one thing their attention at a time, working on it until it beforehand, with the meeting used to tie up loose is done. Interruptions are considered both irritating and ends, or afterwards, with the meeting serving as a rude. If a deadline or appointment is likely to be missed, forum for discussion. it needs to be for good reason and as much notice as Business meetings may begin with general, impersonal possible must be given. Managers will delegate tasks to small talk, but only a limited amount. The agenda will subordinates with strict deadlines and an assumption that be used as a guideline for the discussion, but there is these will be met. a degree of flexibility if other points need to be raised. Punctuality is taken very seriously. If assignees are Luxembourgers may negotiate in teams, in which unavoidably detained, they should telephone and case, deference will be shown to the most senior apologise profusely when they arrive. People who are person present. poor timekeepers are not taken seriously. Written follow-ups outline the points discussed and the Luxembourgers are unlikely to schedule breakfast plan of action agreed. If a deal is concluded at a meeting, meetings or work late just to make a favourable it may be followed by a celebratory lunch or dinner. impression. They expect a prompt reply to business enquiries and need assurance that commitments and deadlines will be met.

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Decision Making On the whole, in business, Luxembourgers are risk-averse. Financial decisions are not taken lightly and a long-term approach is sought rather than a fast profit. Decisions are only made following extensive examination of the facts and of business models, and are based on empirical evidence rather than emotion.

Dress Code Dress code is formal and neat. Assignees should pay attention to the cut of their suits, polished shoes, tasteful but not ostentatious jewellery and a conservative colour palette. Women wear business suits, or a dress, or a blouse and skirt. If in doubt, assignees are advised to dress up rather than down. Outside the workplace, dress code is much more informal, although Luxembourgers will look casual and stylish rather than scruffy.

TOP TIPS FOR SUCCESS • When offering cross-cultural training to assignees and their families moving to Luxembourg, organisations should take into account the length of the assignment as well as the scope of relocation experience that the assignee and family has. • Humour should be used with caution. Luxembourgers enjoy sarcasm as well as imported, slapstick comedies from Britain, and poke fun at and , as well as their own ethnic minorities. This is best left to the locals; visitors run the risk of appearing xenophobic if they make jokes about Luxembourg’s neighbours. • Business cards can be printed with the information translated into French or German on the reverse side. • Small, tasteful business gifts are appreciated — something stylish and discreet. Anything reflecting an assignee’s home country is suitable. If assignees are invited to someone’s home, acceptable gifts include flowers (odd numbers and not chrysanthemums, which are for funerals) or chocolates, or a good bottle of wine. If the host has children, a small token like some sweets will be well received. • Luxembourgers are passionate about their cars, which are one of the few things they will openly show off, so a car conversation is always a good ice breaker if it begins by admiring somebody’s vehicle. • It is important to compliment Luxembourgers on the natural beauty and fascinating history of their country and its products, of which they are very proud. • Assignees should greet shopkeepers politely and thank anybody who offers good service.

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CLIMATE

Luxembourg has a moderate continental climate TOP TIPS FOR SUCCESS with mild winters and summers. In summer, the mean temperature is usually 20-22° C, although some days • Assignees should pack suitable clothing in can reach 30° C. Winters are seldom severe, the average winter for walking outdoors; because the center temperature being about 0° C, with snow on higher of Luxembourg City is so compact, people may ground. The high peaks of the Ardennes in the north walk between appointments rather than drive, shelter the country from rigorous north winds, and the and waterproof outerwear is useful. prevailing north-westerly winds have a cooling effect. • Men should wear a suit, even in summer, and jackets should only be removed if one’s Rainfall is plentiful in the extreme southwest; counterpart does the same. precipitation throughout the country averages about 75 cm (30 in) annually. Spring and autumn are the wettest times of year. The weather is rarely severe enough to disrupt business life or public transport.

LUXEMBOURG: BASIC FACTS Capital: Luxembourg Official Language: German, French and Luxembourgish Currency: Euro Main Cities: Luxembourg City Climate: Moderate continental climate with mild winters and summers. Government: Parliamentary constitutional monarchy Population: 509,000 Time Zone: GMT +1 hour Dialling Code: +352

Content for this publication was provided by Cartus Supply Chain, Intercultural and Language Solutions. Cartus also thanks our Destination Services provider, Map Relocation, for the information provided for this Relocation Country Guide.

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Source: Country Navigator powered by TMA World – www.tmaworld.com and AtoZ of the World (Cultural Issues section). AtoZ of the World is an online country guide which is available free of charge to Cartus clients and assignees on CartusOnline®.

The information in this publication is provided in good faith based on information currently available and is therefore subject to change. However it is not intended to provide specific advice or guidance or take the place of either written law or regulations. Cartus accepts no liability for the accuracy, completeness or usefulness of the data and information contained herein or for any loss or damage arising in contract, tort or otherwise in reliance of the data contained or omitted from this publication or from any action or decision taken as a result.

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