Luxembourg may be tiny in relation to larger neighbours Belgium, France and Germany, yet its capital city over-performs in the talent that calls it home. A city that boasts the highest share of foreign-born residents of any European city maintains its coveted hometown status by boasting Europe’s highest GDP per capita. More than 170 nationalities live here, making Luxembourg a true economic, social and cultural melting pot—fitting, given the destruction it endured during the Second World War. Where does the city’s wealth originate? The efficient bank sector (finance comprises 25% of local GDP) for one, as well as being the Secretariat of the European Parliament and headquarters of the European Court of Justice. The Bank of London is establishing its EU headquarters (and 300 new jobs) here, with The China Taiping Insurance Group doing the same.
The capital of the only Grand Duchy in the world—you might run into the duke in your wanderings—remains one of the continent’s best-kept secrets (given its #117 Lovability ranking among the Top 100 in Europe) despite being an urban UNESCO World Heritage site, the only city to have been crowned a European Capital of Culture twice, yet one that’s rarely overrun by visitors. Fortunately, the city has vowed to invest €500 million in affordable rental housing.