LuxRelo: Facilitating Relocation To Luxembourg

Established in 2016, LuxRelo is a family business run by Stéphane and Sandrine Compain, which provides comprehensive relocation and immigration services. Stéphane, co-founder & CEO of LuxRelo, explains the difficulties and obstacles people face when setting up home in Luxembourg.

What are the main services offered by LuxRelo to companies wishing to relocate their employees to Luxembourg?

At LuxRelo, our primary focus is on helping companies relocate their employees, which makes up 90% of our work, though we also assist private individuals, accounting for the remaining 10%. We take care of all the bureaucratic and administrative tasks necessary to fully integrate someone into the Luxembourgish environment or relocate them to another country, whether within the EU or beyond. To achieve this, we have a team of specialized consultants from different countries (Bugaria, Moldova, US, South Africa, etc …). Our services cover everything from work permit applications, the declaration of arrival at the commune, and obtaining residence permits, to home searches, family allowances, and parking stickers. Each client receives personalized relocation support, ensuring all aspects of their move are handled with care and precision.

How do these services differ from those offered to individuals?

The services offered to individuals are exactly the same as those offered to firms, with the exception that companies bear part or the total cost of relocation for their employees, but this varies from one company to another.

Can renting a house be a problem when immigrating to Luxembourg?

Yes, the housing factor is indeed one of the main problems. Most of the time, people have no idea what it costs to rent a house or an apartment in Luxembourg. Landlords in Luxembourg request that the tenants earn three times the rent, and according to the new law of 01/08/2024, tenants have to pay 50% of the agency’s fees and a two-month deposit or bank guarantee. That’s why the reality that a person has experienced in another country is often not comparable to that of Luxembourg. We draw people’s attention to this fact, manage their expectations and emphasize that a gradual adaptation is inevitable.

Are there any other factors? For instance, what are the specific challenges of relocating families with children? How does LuxRelo address them?

Absolutely, there are other important factors to consider. School integration is often the most challenging hurdle for an immigrant family. For instance, if a family with two English-speaking children plans to move to the Grand Duchy, they may face some difficulties in finding an English-speaking school. While younger children, up to the age of 12, can more easily transition by starting primary school in the local school system and gradually learning the official languages—French, Luxembourgish, and German—teenagers face a tougher challenge when their classmates already mastered the country’s languages, and there is limited space available in English speaking public and private schools. We always suggest starting the school search as soon as the employee learns about a possible relocation to Luxembourg to make sure that they will have space for their children. Most registrations to the private schools are done between March and April.

A third challenge lies in navigating intercultural differences. Though significant, they can be effectively managed if the employee and their family are briefed in advance by our consultants on the key distinctions, particularly in terms of professional and personal etiquette. Our goal is to prevent any intercultural shock and clashes that could lead to tensions. For instance, punctuality varies widely across cultures—some view it as essential, while others are more flexible. Another example is the hierarchy system; in Central Europe, a flat hierarchy is common, whereas in many other countries, a more traditional pyramid structure prevails, with a strong emphasis on deference to authority.

Luxembourg companies should invest in intercultural training for the relocating employees and their families, but also for the local colleagues of the employees, with the aim of minimizing these intercultural differences. LuxRelo works together with several partners providing intercultural support, like for example Weilan Leadership or Gapsmoov, to organise training sessions whenever necessary.

How does your company help expatriates adapt to daily life in Luxembourg, apart from the purely administrative aspects?

We place a special focus on supporting expatriates and their families, fully aware of the unique challenges they face when moving to a new country. Our goal is to help each individual feel secure and smoothly adapt to their new life, offering a personalized approach tailored to the specific needs of every client. Our mission is to manage expectations and ensure a seamless transition.

For example, we emphasize that Luxembourg has its own distinct property market. If someone is relocating from Texas, where they might be accustomed to a large house with multiple garages and a big garden, they must adjust to the realities of Luxembourg. The rental or sales prices in these two countries are simply not comparable, and we make sure our clients understand the economic and cultural differences to avoid any disappointment upon arrival.

Additionally, we often encounter clients who wish to live as close to their workplace as possible. However, if their company is located near the Grand Palace in the city center, we make it clear that this will require a significantly higher monthly rental budget and that it will be very difficult to find a property available in that area. Our approach is always about ensuring our clients are fully informed and prepared for their new life in Luxembourg to avoid as much frustration as possible.

Is there a tendency for immigration to increase in Luxembourg or not?

Last year (2023) was a special year. The war in Ukraine, the global rise in interest rates… there was global uncertainty and fear, which led to a drop in recruitment by companies. Many of them froze their recruitment processes. We feel that in 2024, the situation has already progressed, but not in all sectors.

Which nationalities of expats are most represented in Luxembourg?

The most represented nationalities that LuxRelo welcomes in Luxembourg are from India, followed by China, the United Kingdom, Brazil and the United States of America. However, these figures can vary from year to year. According to Luxembourg’s National Statistics Office (STATEC) 2023 research, the top 3 countries of origin for TCNs in Luxembourg are Ukraine, India and Brazil.

What are the dominant industries or professional sectors among those looking to relocate to the Grand Duchy? Are there any particular trends in terms of the professions sought in the context of immigration to Luxembourg?

The main sectors recruiting from outside Luxembourg are finance & banking, the industry, the technology & innovation sector, and the legal & consulting sector. A big part of the newcomers are IT professionals, who can occupy positions in banks, fund management companies, the space industry and other sectors. Secondly, we have professionals from the Service sector, and here the position of Manager is the most popular.  There is a notable trend towards hiring highly skilled and educated individuals. The government regularly publishes lists of shortage occupations, which can provide insight into the professions in demand. This often includes healthcare professionals, engineers, and IT specialists.

Who are the companies that hire these professionals?

It is mainly Luxemburgish companies or local branches of international firms that recruit talent from these specific nationalities for the above key positions. However, the trend is shifting towards filling newly created roles, rather than simply transferring employees from subsidiaries in other countries to Luxembourg. 

How do you propose your services according to your clients’ needs? 

We operate much like a restaurant, offering services à la carte or a full menu, depending on what our clients need. If someone requires only a specific service, like a “Home Search,” we can provide just that. If the companies want us to provide a full service including immigration (work/residence permit), home search, settling-in and all the administrative support (declaration of arrival, co-insurance, exchange of driving license, etc…) needed to be compliant in Luxembourg, we also have packages that cover it all.

What are the future prospects for the relocation market in Luxembourg, and how does LuxRelo plan to adapt to emerging trends in international mobility and immigration?

I’m pretty positive about the future. Luxembourg’s employment basin, centered in the Greater Region, is limited. If Luxembourg wants to continue growing and attracting new companies, it will inevitably need to recruit talent from beyond its borders. As I always say, the first impression people get of a country is shaped by their arrival experience, especially when navigating the bureaucracy and finding accommodation. When companies invest in services like ours, they’re ensuring a much smoother and a positive customer experience for their employees. It’s also a way for companies to let their employees know that they care for them and want them to feel welcome in their new country.

Our business keeps evolving as companies continue to recruit internationally. It’s highly beneficial for both employees and companies to have the entire relocation process managed by a professional firm like LuxRelo. This approach not only simplifies the transition for the individual but also enhances the overall efficiency and satisfaction of the company, as most of the burden is taken away from the employee who can immediately focus on his new job and from the HR who can concentrate on other important tasks. 

I can imagine that you must exchange a great deal of personal details with an individual, given that this is a demanding administrative and bureaucratic process. How do you exchange information with each of your clients?

We have a very intuitive, compliant and secured web platform divided into 3 areas: Company/HR, Employees and LuxRelo consultants. Through this platform employees can securely upload & share documents, view properties, follow the process & the tasks,  and chat with their consultant (we hardly use emails anymore).