Luxembourg owes its continued existence to a mixture of good fortune and good diplomacy, which have prevented it from being permanently absorbed into the territories of its larger neighbours. By the time that Luxembourg's independence was finally confirmed in 1867, however, the Grand Duchy was left with such a tiny territory that its people had to look across its borders for economic survival. This has resulted in a cosmopolitan attitude, which has survived to the present day and is exemplified not only by the fact that the country has the highest percentage of foreigners of any EU country, but also by the trilingual ability of its people.

Luxembourg is an attractive country with a green and picturesque landscape and many historical sites within easy reach of one another. The central and southern part of the country that surrounds the capital, known as 'the Good Land', consists mainly of rolling farmland and woods. To the northeast is the Müllerthal, characterised by sandstone rock formations and forests, while the northern third of the country is the Ardennes, set in beautiful forested hills and valleys. South of the capital is the Land of the Red Rocks, so named from its 'red earth', rich in iron. The southeast frontier is marked by the Moselle Valley, famous for its wines.

The capital, Luxembourg-Ville, is split into two districts: the delightful old centre, complete with fortress towers, turrets and winding, cobblestone streets; and the modern downtown area on the Plāteau du Kirchberg. The entire old part of Luxembourg-Ville was declared a World Heritage Site by UNESCO in 1994. In contrast, the myriad of new modern office complexes being built in the modern district on the Plāteau du Kirchberg testify to Luxembourg's reputation as a major international financial centre. The country's geographical position at the 'heart of Europe', its strict banking secrecy laws and fiscal legislation are amongst the reasons why Luxembourg is the country with the highest banking concentration in Europe.

Proud of its role as a founding member of the EU, Luxembourg sees itself as playing a prominent position in European affairs and there are a number of European Union institutions based in Luxembourg-Ville.