I'm outside one
of Amazon's
headquarters.
It has thousands
and thousands
of employees
in the campus behind me.
But this isn't Seattle
or London
or even Dublin.
Amazon has
brought thousands
of employees
to this country,
but also not really paid
taxes here either.
It's become a battle
between governments
and companies.
Today, Luxembourg
is ranked
as the richest country
in the world.
If you even look
at the cars
that pass by on
the street.
You'll realize,
and I'm here
to try to understand.
Why is it so rich?
This is
the first country
in the world
to make
public transportation
totally free.
Walking around here,
it feels less
like a city or country
and more like,
well, Disneyland.
It truly is.
Incredibly
clean organized.
But I'm just fascinated by
how really
clean this tram
system is.
But don't think
of this place
as just a
historical European
country.
It's an active hub
for some of the world's
biggest tech companies.
if you hear
something is mostly
because of tax
haven or something
like this.
This country has a tiny
population smaller
than almost
every single U.S. state.
And yet
despite that,
it's considered
an economic powerhouse.
There are big companies
still having
some advantages
here in Luxembourg.
Living here,
though, has its perks.
Public transportation
is free, your salaries.
better than other countries
Health care is free
I went to the pharmacy.
everything is free.
But does some of this
come at a cost?
I would prefer
that they pay the taxes
in their own country.
So that would be
better for equality
all around the world
I'm exploring this
tiny country
and I want to know
Is Luxembourg so rich?
I've come to Amazon's
European headquarters,
and what's
really interesting here
is that it's almost like
they're going out
of their way
not to be known
I mean, you don't see their logo
except for one place.
If you go to an Amazon
bookstore,
you'll see a bigger
logo there.
Amazon has more
than 3000
employees here.
At this campus,
and it's planning
to grow that number.
And if you look at this
press release,
you'll see that
Amazon is quite
proud of the jobs
that it's bringing to
this country.
But consider this Amazon
paid zero taxes
to this country.
Last year,
the EU ordered Amazon
to pay over
$3 million in back
taxes to Luxembourg.
But Amazon appealed
and won, and Luxembourg
isn't complaining.
In fact,
it incentivizes
companies to come
and be based here.
for this exact reason.
This place
has even been called
a magical fairyland
for companies
looking to avoid taxes.
It's quite fascinating
and it's quite beautiful.
This is a beautiful area,
I think
to work would be
would be beautiful.
It amazes me, though,
how in such
a tiny country
this company
has so many employees.
But let's be realistic here.
Amazon isn't doing anything
wrong.
It's actually
doing what
the system
tells it to do,
which as a publicly
traded company
is essentially
to maximize profits.
And it's far from
just Amazon.
Who is here to do that?
This is it.
This is the Microsoft Office
here in Luxembourg.
Ten years ago,
The Guardian published
this report
that Microsoft
avoided millions
in corporate taxes
through what
it called
a Luxembourg loophole.
But hold up.
If these companies
are paying little
or no taxes,
how exactly
does this country generate
so much income?
Well, think about it
this way.
If Amazon has around
4000 employees here.
Imagine 4000 people
coming here
every day, either
living or commuting
and spending
much of their wages
on housing, on food,
which essentially boost
the economy
the company is still having
some advantages.
Luxembourg
also for
private persons,
they also have advantages.
Yes.
So how did it get here?
Well, Luxembourg
has been rich long
before American tech
companies expanded
into Europe.
At the beginning
was mostly because of a
steel industry.
And now, let's say
from the 50s
after Warsaw,
from the 50s
until now,
it's mostly
before for services,
especially financial
services,
also insurances
and investment funds.
That makes the richness
of Luxembourg nowadays.
Fast forward to today,
where everyone seems
to have a high standard
of living, a good salary
and good
public health system.
In fact,
this country
has the highest
minimum wage in the EU.
And in addition
to companies
setting up here
for their
European headquarters,
you will also see
many investors
from Middle Eastern countries
investing in real estate
assets.
This is truly.
one of the cleanest cities
I have ever been to It's
right up there
with Singapore
and Dubai.
And by all accounts,
it is kind of like
a Singapore or Dubai.
Especially during
school.
It's very funny
because you have people
from everywhere
people from Germany,
from France,
from Portugal.
So I find it
very exciting
to grow up here
in Luxembourg.
Today, Luxembourg
has about
640,000 inhabitants.
And every day
it has a large
share of people
commuting
from nearby countries
like Germany and France.
We are quite rich.
Yes, but
it's not like in Qatar
where you can see
really
richness everywhere.
So here it's like more
The average
salaries are very high
and everyone's
living here, like in.
the middle class.
It is quite interesting
and almost bizarre
to see amidst
this country,
amidst a city
that feels
very historical,
very European,
almost like
a Disney movie.
And then you see
this logo here.
My income here
is 50%-40% higher
because the taxes in
French are higher
and the salary is
lower
The salary is
also gross.
Make more here,
plus the taxes are
higher there.
The reason why
I moved to Luxembourg
initially is
I wanted
some sort
of a better work life balance,
Everything's expensive,
so you have to have
higher salary.
That, I think, is
in every country
where you have
everything that's
going to be a bit
more expensive.
They have to
have higher salaries, right?
And it's no different
than Luxembourg.
Luxembourg,
one of the countries
that gives a lot of maternity
leave for new mothers.
They can get up
to like six months
of paid maternity leave
And even fathers
on top of the like
four to six weeks
of paid maternity leave.
They can get like
six more months
of also parental leave.
In Luxembourg,
almost all of the health
care is public health care.
and this is
the best time
type of health care here
I went to
the pharmacy like
everything is free
or you get reimbursed for it
Feels Incredibly weird
to get on a train, tram
or bus
and not pay
not have to get out
your cash,
get out your credit
card.
In the coming years,
Luxembourg is only going
to get richer,
with economists
predicting
it will be
nicely slotted
in the top slot in 2025.
other countries
are losing out
on tax revenue
that they claim
should be theirs.
The European Commission
regularly investigates
how companies
are utilizing
Luxembourg's
tax benefits
and as seen
with the most recent
Amazon case,
Luxembourg continues
to welcome
big tech companies.
Amazon is happy,
but other countries
and EU
regulators are not.
Meanwhile,
President Biden
is now pushing
for a global
minimum tax.
This would apply
to all
multinational
corporations, regardless
of where they are located.
He's hoping to do this
so that companies
like Luxembourg
stop getting away
with being a corporate
tax haven
while letting companies
put their headquarters there.
While I'm here,
there's something else
I learned this tour guy
that I interview,
he’s also a full time nurse.
He works as a nurse
full time
and makes about $3800 a month.
But $2200 a month
goes toward his rent.
So he's spending
more than half of his salary
every month on rent.
And what's
interesting is
he said
he tried
to live in Spain
for a little bit,
but the wages
were a lot less.
So even though
cost of living here
in Luxembourg,
it's very high.
Wages are
obviously higher
than they would be in
a lot of other
parts of Europe.
They have to be.
He tells me that despite
being from here
and growing up here
now, it's becoming
too expensive
to actually live here.
You still have a lot of
job offers,
but the thing is really
real estate
is getting so expensive
that many young people
are now
living on the border.
So either
Germany, France
or Belgium,
because housing prices
are too expensive.
I might also plan to
go to Germany
or France or Belgium
because for
the same price
I would get like a palace
over there
here you have living like
like a tiny flat.
So yes,
even Luxembourg
is moving out.
So mostly Luxembourgs
are actully moving out