The Grand Duchy of Luxembourg is situated in Western Europe between Belgium, France and Germany and was created within the German Bund by the treaty of Vienna Mapof 1815. In 1867 Luxembourg gained independence from Germany and organised itself as a constitutional monarchy with the legislative power vested in a democratically elected parliament. Luxembourg is a member of OECD, the European Union, the Benelux Union and the Belgium/Luxembourg Economic Union. The capital city is also called Luxembourg and is the centre of government, business and finance. The legal system is based on Napoleonic code and is therefore similar to the Belgium and French legal systems. Population is approximately 400,000, 20% of whom are foreign nationals. French, German and English are widely spoken and used in business circles with French being the administrative language. The currency is the Luxembourg Franc which is freely tradeable but there are approximately FLUX30 to US$1. The maximum rate of corporation tax applicable to Luxembourg companies is 33% but additional municipal taxes can bring the aggregate rate to as much as 39%. There are, however, two types of companies to which special tax regimes apply and which are therefore useful for tax planning purposes.