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Hiring Top Talent in Luxembourg Without a Local Entity

Expanding your business into Europe can open the doors to incredible opportunities, and Luxembourg, with its strategic location, stable economy, and multilingual talent pool, stands out as one of the most attractive destinations for global employers. But setting up a legal entity in a new country can be a long, complex, and expensive process. 

So, how can companies hire employees in Luxembourg quickly and compliantly without going through the hassle of local incorporation?  The answer lies in partnering with an Employer of Record Luxembourg. This service enables global companies to hire, manage, and pay employees legally in Luxembourg without the need to establish a local entity. 

Key Takeaways: 

  • Hiring in Luxembourg is simple with an Employer of Record (EOR) enables companies to employ local talent legally without the need to set up a local entity.
  • From payroll and taxation to employment contracts, EORs ensure full adherence to Luxembourg’s labour and tax laws.
  • Businesses can test new markets or build remote teams in Luxembourg quickly and cost-effectively using EOR services.
  • Multiple reliable providers are available, including companies such as Multiplier, Deel, Remote, Papaya Global, and Oyster HR, which offer robust EOR solutions tailored to meet global hiring needs.
  • Partnering with an employer of record in Luxembourg allows companies to focus on growth while reducing legal and administrative burdens.

Why Companies Choose to Hire in Luxembourg

Luxembourg is known for its strong financial sector, multilingual professionals, and favourable business environment. The country attracts skilled talent from across Europe, particularly in fields such as finance, technology, law, and logistics.

However, employing people directly can require setting up a local legal entity, registering for taxes, and complying with strict labour laws, a process that can take months. An EOR simplifies all this by becoming your in-country hiring partner, allowing you to start operations in days, not months.

Who Should Consider Using an EOR in Luxembourg?

An Employer of Record can be a game-changer for businesses of all sizes. Your company should consider partnering with an EOR if it:

  • Needs to hire employees in Luxembourg, but doesn’t want to establish a legal entity
  • Is testing local markets before committing to a complete business expansion
  • Wants to ensure full compliance with local employment laws and tax requirements
  • Needs a fast, cost-effective way to onboard employees in Luxembourg
  • Requires a temporary hiring solution before establishing a local entity

Whether you’re a startup testing international waters or a large enterprise entering a new market, working with an employer of record Luxembourg makes it easier to scale safely and efficiently.

Top Employer of Record Providers in Luxembourg

Choosing the right Employer of Record Luxembourg partner is crucial for smooth onboarding, payroll management, and compliance. Here are some of the leading providers helping global companies hire talent in Luxembourg efficiently and compliantly.

1. Multiplier

Multiplier is a global employment platform that simplifies international hiring, payroll, and compliance across more than 150 countries, including Luxembourg. It enables businesses to hire local talent without setting up a legal entity while ensuring full compliance with local employment laws.

Key features:

  • Locally compliant employment contracts and onboarding
  • Automated payroll and benefits administration
  • Transparent pricing structure
  • Support for work permits and visa processing
  • Dedicated customer and compliance support

2. Deel

Deel provides an end-to-end global hiring solution, enabling companies to employ full-time workers and contractors worldwide. Its intuitive platform automates compliance, payroll, and tax processes while offering localised employment contracts.

Key features: 

  • Global payroll and benefits management
  • Customisable compliance tools
  • Streamlined onboarding experience
  • In-depth analytics and reporting
  • 24/7 customer support

3. Remote

Remote offers comprehensive EOR services with a strong focus on compliance, data security, and employee experience. It supports businesses in managing payroll, taxes, and benefits while maintaining adherence to Luxembourg’s labour regulations.

Key features:

  • Full compliance management and risk mitigation
  • Localised payroll and benefits solutions
  • Employee self-service tools
  • Transparent pricing and global coverage
  • Integration with HR and finance systems

4. Papaya Global

Papaya Global provides a unified platform for global payroll, payments, and workforce management. It helps companies maintain transparency and control while ensuring adherence to Luxembourg’s employment and tax requirements.

Key features:

  • Centralised payroll and payments dashboard
  • Real-time analytics and workforce insights
  • Multi-country compliance management
  • Automated reporting tools
  • Scalable solutions for growing teams

5. Oyster HR

Oyster HR helps companies hire and manage employees in over 180 countries, including Luxembourg. Its focus is on simplifying international hiring while providing competitive local benefits and full compliance support.

Key features:

  • Seamless onboarding and contract management
  • Payroll and benefits administration
  • Legal and tax compliance assurance
  • Platform-driven employee management tools
  • Support for remote and hybrid teams

Hiring top talent in Luxembourg is elevated to the best when there is no need for legal and administrative hurdles, although when there is no matter for the fact. 

Conclusion

Hiring top talent in Luxembourg doesn’t have to mean navigating complex legal and administrative hurdles. With the right Employer of Record Luxembourg, you can recruit, onboard, and manage employees seamlessly while staying fully compliant with local labour laws.

Among the top providers, Multiplier stands out as the most comprehensive and reliable solution. Its intuitive platform, transparent pricing, and in-depth understanding of Luxembourg’s employment landscape make it ideal for businesses looking to expand globally without legal complications. 

Ready to hire in Luxembourg without setting up a local entity? Partner with Multiplier today to simplify your global hiring and grow your team confidently in one of Europe’s most dynamic markets.

Frequently Asked Questions

  1. Is using an EOR legal in Luxembourg?

Yes. EOR services are fully compliant with Luxembourg labour laws and are widely used by global businesses to hire employees legally without establishing a local entity.

  1. How long does it take to hire employees through an EOR in Luxembourg?

With providers like Multiplier, you can onboard employees within days, compared to weeks or months when setting up a new entity.

  1. Can an EOR help with employee benefits and social security in Luxembourg?

Absolutely. EORs handle benefits administration, including healthcare, pensions, and social security contributions, ensuring full compliance with local requirements.

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