While foreign direct investment (FDI) across Europe declined by 7% in 2025, Luxembourg recorded 35 cross-border investment projects, an increase of 6%, according to the EY Luxembourg Attractiveness Survey.

FDI in Luxembourg remains mainly service-oriented, technology-enabled and highly specialised. Financial services are the main driver of investment, followed by software, IT services and artificial intelligence.

Headquarters activities recorded strong growth in 2025, increasing from 5 to 11 projects, confirming Luxembourg’s role as a location for regional and functional headquarters within Europe.

Investor confidence is supported by Luxembourg’s regulatory credibility, political stability and connectivity, as well as its AAA credit rating and established financial infrastructure.

FDI inflows come mainly from continental Europe, North America and Asia-Pacific.

Overall, Luxembourg continues to act as a trusted gateway to the European market for international investors, particularly in a context of more selective investment decisions across Europe.

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