After the German occupation in May 1940, the Grand Duchess of Luxembourg and her government fled to Great Britain. Following a period of military administration, the country was placed under a German civil administration headed by Gustav Simon, district head of the adjoining German province of Koblenz-Trier. In August 1942, Germany formally annexed Luxembourg.

Before the war, over 3,500 Jews lived in Luxembourg. A majority of them had emigrated from eastern Europe. In addition, over 1,000 German Jewish refugees found shelter in the tiny duchy. The Nuremberg Laws were introduced in Luxembourg on September 5, 1940, followed by several other anti-Jewish ordinances. In practice, however, Jews were encouraged to leave the country. From August 8, 1940, until the Germans forbade emigration on October 15, 1941, more than 2,500 Jews left Luxembourg, mostly for the unoccupied zone of France. Many of these Jews were later deported from France to extermination camps in occupied Poland.