Why does Luxembour keep such a low tax rate?

Many people go to Luxembourg to live because this country has such a low tax rate. This tax rate has been going on for many years. Many companies and individuals have bank accounts in Luxembourg and purchase things from this country due to this low tax rate.

Due to their banking and financial services that they provide, they can have such a low tax rate. Their economy has allowed them to do this. Many foreign companies and people who want to evade their own taxes often find a way to benefit from this low tax rate that this country has. Money that is sent into and out of the country do not have to pay a lot of taxes on this money.