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Prostitution in Luxembourg is in itself legal,  and is common,  but activities associated with organised prostitution , such as profiting from operating brothels and prostitution rings or aiding prostitution, are illegal.
In February , the Chamber of Deputies approved a bill to criminalise the clients of prostitutes who were trafficked, exploited, a "vulnerable person" or a minor. Street prostitution is only permitted in two streets near Luxembourg City 's railway station ,  and only between The area is regulated by the city authorities, and patrolled regularly by the police. Because of the number of prostitutes and limited area to work in, some work from other streets near the legalised area and risk being arrested.
The spread of prostitutes into adjoining streets coupled with drug activity and gang violence has resulted in police closing some streets in the area to traffic at night and having high profile foot patrols. The authorities have been working towards a national prostitution strategy for a number of years. A survey of public opinion was carried out online between and The first measure to come out of the discussions was the 'EXIT strategy' in A government-funded scheme, run by the Luxembourg Red Cross , to provide shelters, support, and advice to those women who wanted to exit prostitution.
The NAP did not criminalise prostitutes or clients, but its goal was to make prostitution safer. A draft law was presented to parliament "strengthening the fight against the exploitation of prostitution, pimping and human trafficking for sexual purposes". Luxembourg is a destination country for women and children subjected to sex trafficking. Victims of sex trafficking from Europe, Africa, Asia, and South America are exploited in prostitution in cabarets, private apartments, and on the street.
Luxembourg prohibits all forms of sex and labor trafficking through articles and of the criminal code. The prescribed penalties range from three to 10 years imprisonment for adult trafficking and 10 to 20 years imprisonment for child trafficking. In , the government reported initiating eight investigations for sex trafficking, the same number as the previous year.