Open Coffee Shop in Luxembourg: Permits, Costs and Steps

Luxembourg is an attractive location for entrepreneurs looking to enter the food and beverage industry. Whether you want to start a coffee shop in Luxembourg or operate a mobile food truck in Luxembourg, understanding the local regulations, permits, and costs is essential.

Opening a cafe requires compliance with strict HORECA (Hotels, Restaurants, and Cafes) regulations, obtaining necessary licenses, and ensuring your business is financially viable. This guide provides a detailed breakdown of the steps involved in how to open a cafe in Luxembourg successfully.

Choose your coffee business model

Before registering your business, decide on the type of coffee shop you want to operate:

☕Traditional cafe. A sit-down cafe serving coffee, pastries, and possibly light meals.
🥤Coffee-to-go. A small, takeaway-only location with limited seating or lack thereof.
👨‍🍳Speciality coffee shop. Typically, a sit-down cafe serving freshly roasted coffee, offering alternative options to prepare it, such as Hario V60, AeroPress and Chemex.
🚚Food truck. A mobile business selling coffee and snacks. It requires specific mobility permits.
🤝Cafe-franchise. Joining an established coffee brand instead of starting from scratch.

Your choice will determine the permits, costs, and space requirements for your business.

Register your business

To open a HORECA company in Luxembourg, you must follow a formal business registration process. The steps include:

Step 1️⃣. Obtain an establishment permit

Before opening your cafe, you must obtain an establishment permit from the Ministry of Economy. This permit is mandatory for all businesses in the HORECA sector.

Requirements are the following:

Relevant qualifications or professional experience in hospitality.
Proof of good repute (criminal record check).
Business plan and financial projections.
Physical address for the business.

For more details on the Liste autorisation d’établissement Luxembourg, visit the official Guichet.lu.

Step 2️⃣. Register the business with the Luxembourg Trade Register (RCS)

Once you have the establishment permit, you must register your business with the Registre de Commerce et des Sociétés (RCS). This step is necessary whether you set up a coffee shop or a food truck in Luxembourg.

Step 3️⃣. Tax and social security registration

All businesses must register with the Luxembourg Inland Revenue (ACD) for taxation purposes and with the Centre Commun de la Sécurité Sociale (CCSS) if you plan to hire employees.

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Costs of opening a cafe in Luxembourg

The costs of opening a cafe in Luxembourg depend on the size and location of your business. Below is an estimated breakdown of the main expenses:

Expense category	Estimated cost (€)
Business registration and permits	500 – 1,500 euros
Rent and property Setup	2,500 – 10,000 euros per month
Equipment and interior design	10,000 – 50,000 euros
Initial stock and supplies	3,000 – 8,000 euros
Salaries (if hiring)	2,500 – 3,500 euros per employee
Marketing and branding	2,000 – 5,000 euros
Insurance and utilities	1,500 – 3,000 euros per month

If you choose to open a food truck in Luxembourg, the costs may be lower, typically ranging from 30,000 euros to 80,000 euros for purchasing and equipping a truck. However, you must obtain additional mobile vendor permits from local authorities.

Permits for cafe in Luxembourg

The following licenses and HORECA permits are necessary to operate a coffee shop in Luxembourg:

1. Establishment permit
Required for all HORECA businesses.
2. Food safety and hygiene certification
Luxembourgish Veterinary and Food Administration (ALVA) must inspect and approve your premises.
3. Alcohol license (if serving alcohol) 
Issued by the local municipal authorities.
4. Music license
If playing background music, a license from SACEM Luxembourg is required.

For food trucks in Luxembourg, you also need a special street vending permit from the local municipality.

Choosing the best location for your coffee shop

Location is crucial to success. Some of the best areas for a coffee shop in Luxembourg include:

Luxembourg City Centre – High foot traffic, ideal for premium and speciality cafes.
Kirchberg – Business district, great for coffee-to-go shops.
Gare (Train Station Area) – Ideal for commuters and quick-service coffee shops.
Clausen & Grund – Popular with tourists and nightlife visitors.

If you opt for a food truck in Luxembourg, popular locations include university areas, business districts, and local markets.

Hiring staff and compliance with labour laws

If you plan to hire employees, ensure compliance with Luxembourg’s labour laws:

Minimum wage: 2,570 euros per month (for unskilled workers, as of 2024).
Working hours: 40 hours per week, with paid overtime.
Employee contracts must be registered with the Inspection du Travail et des Mines (ITM).

Conclusion

To open a coffee shop in Luxembourg, you must obtain an Establishment Permit, register your business, and ensure compliance with local food safety regulations. Whether launching a traditional cafe or a food truck in Luxembourg, understanding costs, location strategies, and permit requirements is crucial to success.

FAQ

How long does it take to open a coffee shop in Luxembourg?

The process typically takes 3 to 6 months, depending on various factors such as permit approvals, business registration, and property setup. Obtaining the Establishment Permit from the Ministry of Economy can take 4 to 8 weeks, while registering with the Luxembourg Trade Register (RCS) usually takes 1 to 2 weeks. Finding a location, setting up the interior, and securing necessary food safety certifications add more time to the process. If you are applying for financing or business loans, it may take additional time for approvals.

Can foreigners start a cafe in Luxembourg?

Yes, foreigners can start a coffee shop in Luxembourg, but non-EU citizens may face additional requirements. EU and EEA citizens can register their businesses freely. However, non-EU entrepreneurs may need a business visa or a residence permit for self-employment, which requires proving financial resources and submitting a solid business plan. The approval process can take several months. Additionally, all foreign entrepreneurs must obtain an Establishment Permit, ensuring they have the required experience and clean legal records.

What are the key permits needed to start a coffee shop in Luxembourg?

To legally start a coffee shop in Luxembourg, you must obtain: an establishment permit, food safety and hygiene certification, an alcohol license, and a music license. For food trucks in Luxembourg, an additional street vending permit is necessary from the local commune where you plan to operate.

Is opening a food truck in Luxembourg easier than opening a cafe?

Yes, opening a food truck in Luxembourg can be easier and more affordable than opening a traditional café. Food trucks require fewer permits and lower initial investment since there is no need to rent a storefront.

What is the VAT rate for cafés in Luxembourg?

In Luxembourg, Value Added Tax (VAT) applies to food and beverage businesses. The standard VAT rate is 17%. Cafés must register for VAT collection if their annual revenue exceeds €35,000. Businesses under this threshold can opt for VAT exemption, but they cannot reclaim VAT on expenses.

How much does it cost to open a coffee shop in Luxembourg?

The costs of opening a café in Luxembourg depend on the business model, location, and size. Estimated costs include: If you choose to open a food truck in Luxembourg, the total initial investment is usually between €30,000 and €80,000, depending on the type of truck and kitchen equipment.

What are the best locations for a café in Luxembourg?

Choosing the right location is key to a successful coffee shop in Luxembourg. Some of the best areas include: Luxembourg City Centre, Kirchberg: Business district, Gare (Train Station Area), Clausen & Grund. For food trucks in Luxembourg, ideal locations include university areas, business districts, and local markets. Some food trucks also operate seasonally at festivals and events.

Do I need to hire staff to run a coffee shop in Luxembourg?

If you plan to operate a small takeaway café, you might be able to run it alone. However, a larger coffee shop with seating will require staff. If you want to reduce staffing costs, consider implementing digital ordering kiosks or self-service stations.

What are the biggest challenges of opening a coffee shop in Luxembourg?

Starting a coffee business in Luxembourg comes with its challenges, including high rental costs, seasonal demand and competition. To overcome these challenges, strong branding, online presence, and customer engagement are essential.

Open a Coffee Shop in Luxembourg: A Complete Guide