Luxembourg’s financial sector is recruiting Belgian talent from the local market or trying to lure them to the Grand Duchy. Although Luxembourg remains the top destination for Belgians seeking to work abroad, the number of those actually doing so has stagnated.
By the end of 2024, Belgium represented a market of 500 billion euros in assets. There is market share to be gained for private banks, especially in Flanders. Some Luxembourg banks, such as Banque de Luxembourg, are actively recruiting Dutch-speaking talent in the local market.
These banks are primarily looking for Belgian candidates—particularly Dutch-speaking private bankers—who can win market share among their target audience: Flemish SMEs. Attracting candidates with a local network remains a significant challenge, especially for traditional private banks or family offices that offer little flexibility, for example, regarding remote work or salary package customization.
Other banks, such as BGL BNP, offer Belgian candidates a Luxembourg employment contract. In practice, however, cross-border employment between Belgium and Luxembourg remains complex. The Luxembourg Institute of Statistics and Economic Studies (Statec) recently reported that the number of Belgian cross-border workers did not increase in the third quarter of 2024. Previously, there had been one percent growth, bringing the total to over 48,000 Belgian workers crossing the border daily in 2023 to work in Luxembourg.
The recruitment agency Page Group has recorded only three hires over the past five years of candidates relocating from Belgium to Luxembourg for roles as private bankers or estate planners. According to Michael Page Luxembourg, 99 percent of hires in the banking sector involve candidates already residing in Luxembourg. Even within large international banking groups, internal mobility has yielded limited success.
Talent shortage
Luxembourg has been grappling with talent acquisition challenges for several years. HR professionals cite three main obstacles: high housing costs, the ban on remote work for cross-border employees, and complex internal mobility within the country.
This poses a significant challenge for a nation where the financial sector contributes roughly 25 percent to Luxembourg’s GDP. Banks, asset managers, investment funds, and insurance companies are constantly searching for talent to support their growth. However, the lack of qualified personnel undermines their ability to meet market demand.
In addition to the issues mentioned above, the following challenges play a role:
- Increasing job complexity: The rise of fintech and growing regulatory pressure require hard-to-find specialists.
- International competition: Luxembourg faces rivalry from other major cities like Paris and Brussels, where remote work is more deeply embedded.
- Limited local pipeline: Due to its small population, Luxembourg struggles to train sufficient talent locally. Universities are doing their best to address this, but supply still falls short of demand.
The official journal of the Grand Duchy of Luxembourg, published at the end of March 2025, listed professions facing the most severe shortages: credit and risk analysts, KYC specialists, private bankers, and front-office roles in the financial markets.
The question remains whether the number of Belgians willing to work for a Luxembourg employer will increase again. Luxembourg still ranks among the top countries for Belgians seeking international employment, following the Netherlands and France. Moreover, the Grand Duchy introduced a more attractive tax regime for immigrants in early 2025, aiming to make relocation easier and more appealing.
Lorraine le Pomellec is a partner at Page Executive. She recruits candidates for financial services, banks, insurance companies, and private equity firms, with a focus on compliance, legal, risk, operations, finance, sales, and marketing. Her work spans both Belgium and Luxembourg.