Report Places Luxembourg 2nd in Western Europe for Taxation Conditions

Global platform and research organisation StartupBlink has released its Innovators Business Environment Index (IBEI), ranking 125 countries, with Luxembourg ranking second in Western Europe for Taxation Conditions.

According to the report, Luxembourg ranks thirteenth worldwide and fourth among EU member states in the IBEI 2026 rankings. StartupBlink said Luxembourg’s higher placement in the IBEI 2026 compared with the Global Startup Ecosystem Index 2025 highlighted the strength of the country’s underlying business-environment conditions relative to actual startup ecosystem output.

The organisation added that Luxembourg’s well-developed cross-border financial infrastructure and open trade environment reinforce its position as one of Europe’s most internationally connected business environments.

StartupBlink noted that Luxembourg had established a secure and globally connected business environment, where it combined regulatory certainty with the demands of international companies. It noted Luxembourg’s strategic position in Europe, its diverse language-speaking workforce and extensive history of transnational commerce, which made it an appealing hub for businesses looking for regional entry and a trustworthy platform in the EU.

StartupBlink said: “Despite its size, Luxembourg has grown into one of Europe’s most promising business environments, trusted by companies that value transparency and institutional stability. Recent policy changes indicate a heightened emphasis on entrepreneurship and the ability to scale up.“

It added: “Luxembourg excels in funding research and digital expertise. The high- performance computing framework and continuous digitalisation of administration enhance the speed and predictability of operational processes for firms entering or growing in the country. Collectively, these factors establish a business landscape characterised by global interconnectivity, consistent institutional frameworks and availability of specialised knowledge. These enable Luxembourg to excel beyond its size as a centre for entrepreneurship and high-value economic ventures.”

The full report can be read at https://www.startupblink.com/ibei-report.