The Frankish fortress Lucilinburhuc known as Lutzelburg (small castle 963 AD) became the seat of the Duchy of Luxembourg and was the foundation of the town. The upper town Luxembourg and the lower town Grund, Pfaffental and Clausen already existed when in 1224 the place had freedom of the city. In 1815 Luxembourg became the German garrison for the Prussian occupation and between 1867 and 1883 a large part of the fortress was demolished. In 1958 the Benelux treaty with Belgium and the Netherlands abolished custom borders between the three countries and gave free trade and labor movements between them.

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