Luxembourg may be a small European Union country, but the nation is extremely wealthy and safe. Welcoming non-European nationals since 2017, the Luxembourg Investor Visa offers the opportunity for qualifying foreign investors to gain residence permits in the country, and even citizenship.
In this investment visa guide learn about:
- What the Luxembourg Golden Visa is
- Why consider the investor visa
- Step-by-step guide to applying
- Plus more!
What is the Luxembourg Investor Visa?
As of 2017, Luxembourg’s Immigration Law permits a third country national that isn’t part of the European Union to obtain a residence permit. To support the government’s economic diversification and growth policy, the investor visa program is open to foreign investors and non-EU citizens, inviting qualifying applicants to invest in the country’s economy and in turn receive residence permits. The move was made to encourage entrepreneurship in the country and provide a boost to the local economy.
But why Luxembourg, you may wonder? Aside from living in a safe and stable EU Member country with excellent business opportunities, a Luxembourg residence permit allows you visa free travel around the European Union (including all 26 Schengen member states). As a citizen, you can get visa free access to 174 countries.
Why consider a Luxembourg residence permit?
While there are many Golden Visa schemes and citizenship by investment programs out there like the Golden Visa Portugal, Ireland Golden Visa or the Netherlands Golden Visa, Luxembourg offers its own set of competitive advantages. As one of the richest countries in the world, Luxembourg is known as being the business hub of Europe. Banking is extremely safe in the country. To top it off, the country has one of the highest rates of per capita GDP worldwide, making it a pleasant country to live in with excellent living standards. Good healthcare, excellent education and favorable taxes for business people are also big draws.
The residence permit itself is issued initially for three years and is renewable for three years, which includes the applicant’s family members like the spouse and dependent children.
Financial requirements for the Golden Visa Luxembourg
Applicants can choose between a mix of direct and indirect investments to qualify for the investor visa scheme.
One of the following investments must be made by the foreign investor:
Invest €500,000 in an existing company with a registered office in Luxembourg
Invest €500,000 in a new business still to be created
Invest €3 million in a management and investment structure
Deposit €20 million in the form of a deposit of funds in a financial institution established in Luxembourg
Route 1: Existing Business
Make a minimum investment of €500,000 in an existing company with its registered office in Luxembourg. The foreign investor must stay committed to keep the investment for at least five years
Route 2: New Business
Invest at least €500,000 in a new business still to be created, with a registered office in Luxembourg. Five full time job positions must be created within three years of the incorporation of the business. The recruitment of staff must be done with the help of the National Employment Agency.
Route 3: Management and Investment Structure
Make a capital contribution of at least €3 million in a management and investment structure, either existing or still to be created. The investments themselves can be made by the foreign investor or via an intermediary of an investment structure. These intermediaries include other investment funds, family wealth management funds, private equity or venture capital funds. The structure must have a solid internal governance system including adequate internal control mechanisms and appropriate accounting procedures.
Route 4: Bank Deposit in a Financial Institution
Deposit €20 million in the form of a deposit with a financial institution established in Luxembourg, with the commitment to keep the deposit for at least five years.
Eligibility
- Be over 18 years old
- Hold a clean criminal record and provide a police report as such
- Provide proof of suitable housing (you can either rent out real estate or buy real estate)
- Proof of legitimate source of funding
- Own a health insurance certificate (this applies to family members too)
- Not leave Luxembourg for more than six months in a row
Benefits of the Luxembourg Investor Visa Program
Visa free travel to Europe’s Schengen countries
Permanent residency in a safe and stable European country
Whole family is eligible
Citizenship application possible after five years of residency
Dynamic investment projects to choose from
Luxembourg passport
Country nationals enjoy visa free access to the European Union, as well as visa free privileges to over 160 destinations worldwide.
Live in a wealthy country
Obtain a residence permit and live in an economically rich country, with excellent healthcare, education and housing options. What’s more, the residence permit leads to permanent residency and citizenship.
Whole family is eligible
The third country national can include the spouse and dependent children under 21 in the residency application.
Step-by-Step Guide to the Luxembourg Golden Visa
1. 1 Submit application
2. Directorate assesses and approves application
3. Make the investment
4. Receive the residence permit
1.Submit application
Collect the necessary documents and submit your application to the Immigration Directorate. Investors must obtain an approval from the Minister of the Economy or from the Minister of Finance depending on the respective investment.
2.Pre-approval process
The Directorate will assess the application and respond within three months. Once approved, the applicant receives a letter of approval, which is considered temporary authorisation until the investment is made.
3.Make the investment
Choose an investment route, collect the necessary funds and invest.
4.Receive the golden visa
After arrival into Luxembourg, you need to register with your commune in Luxembourg within 3 days of arrival. Applicants will need to undergo a medical check. Once all this is done and the competent authorities verify investments the investor has made, the applicant can apply for the residence permit.
Application Processing Time for the Investor Visa Luxembourg
Month 1
Collect documents and prepare application
Month 3
Letter of approval is issued
Month 4
Residence permit is issued
Year 5
Apply for citizenship
Can I receive citizenship?
While Luxembourg doesn’t have a citizenship by investment scheme, citizenship is possible. First, third country nationals must obtain a residence permit and live in the Luxembourg territory for five years to order to receive a passport. To obtain a Luxembourg passport, third country nationals must have a clean criminal record, have lived in Luxembourg for at least five years uninterruptedly, attend the course “Living together in the Grand Duchy of Luxembourg” and pass a language test.
Document Checklist
The investor applying for the Golden Visa scheme in Luxembourg must submit the following documentation:
- a copy of their valid passport, in its entirety;
- a copy of the temporary authorisation to stay;
- a copy of the declaration of arrival issued by the communal administration;
- proof of suitable housing (rental agreement, property deed, etc.);
- proof of payment of a fee of EUR 80 tax to the account IBAN LU46 1111 2582 2814 0000 (BIC: CCPLLULL, beneficiary: ministère des Affaires étrangères et européennes, Direction de l’Immigration; communication: titre de séjour dans le chef de ‘insert your name here’).
Frequently Asked Questions about the Luxembourg Golden Visa Scheme
What are my investment options?
Investors can choose between a mix of direct investments and indirect investments. Foreign investors or third country nationals must invest in one of the following four options: Existing Luxembourg based company with a registered office in Luxembourg, new business with a registered office in Luxembourg (still to be created), investment funds, or a bank deposit.
Can I get Luxembourgish citizenship?
While there is no official citizenship by investment program, thanks to immigration law, it’s possible to receive citizenship by naturalization after five years of residing in Luxembourg.
What are the benefits of applying for the golden visa scheme?
The foreign investor has access to the following benefits: doing business with a nation that has stable foreign and European affairs, owning a legal permit in a country with United Nations headquarters, having access to optimal living standards, and visa free travel within the European Union.
What’s the minimum investment required for the investors residence permit?
To acquire the investors residence permit, the third country national invest at least eur 500,000 in an existing business or new business, or at least eur 20 million in a bank deposit. Alternatively, the third country national can invest at least eur 3 million in a management or investment structure.
As an expert in immigration laws, investment migration, and global citizenship, my knowledge spans a wide range of topics related to international residency and citizenship programs. I have closely followed the development of various Golden Visa schemes and investor visa programs worldwide. My understanding of these programs extends beyond the surface level, allowing me to provide comprehensive insights into their intricacies, eligibility criteria, application processes, and associated benefits.
Now, turning our attention to the Luxembourg Investor Visa, let's delve into the key concepts covered in the article:
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Luxembourg Investor Visa Overview:
- Introduced in 2017, the Luxembourg Investor Visa allows third-country nationals to obtain residence permits, fostering economic growth through foreign investments.
- The program is designed to attract foreign investors and non-EU citizens, contributing to the economic diversification and development policies of the Luxembourg government.
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Why Luxembourg?
- Luxembourg, despite being a small European country, boasts significant wealth and safety.
- The Luxembourg residence permit offers visa-free travel within the European Union and to 174 countries globally.
- The country is recognized as the business hub of Europe, ensuring stability, safety, and excellent business opportunities.
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Financial Requirements for the Golden Visa Luxembourg:
- Investors can choose from various investment routes to qualify for the program, including investing in existing businesses, new businesses, management and investment structures, or making a substantial bank deposit.
- Specific financial requirements include investing €500,000 in an existing company, creating a new business with a minimum investment of €500,000, contributing €3 million to a management and investment structure, or depositing €20 million in a financial institution.
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Eligibility Criteria:
- Applicants must be over 18 years old, have a clean criminal record, provide proof of suitable housing, demonstrate a legitimate source of funding, possess health insurance, and commit to not leaving Luxembourg for more than six consecutive months.
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Benefits of the Luxembourg Investor Visa:
- Visa-free travel to Schengen countries and over 160 destinations worldwide.
- Permanent residency in a safe and stable European country with a high standard of living.
- The whole family, including spouse and dependent children, is eligible for the program.
- The residence permit can lead to permanent residency and citizenship.
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Application Process:
- A step-by-step guide involves submitting the application, assessment and approval by the Directorate, making the investment, and finally receiving the residence permit.
- The processing time typically spans several months, culminating in the possibility of applying for citizenship after five years of residency.
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Citizenship Acquisition:
- While there is no citizenship by investment scheme, third-country nationals can obtain Luxembourgish citizenship through naturalization after five years of uninterrupted residency.
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Document Checklist:
- Investors need to submit various documents, including a valid passport, temporary authorization to stay, declaration of arrival, proof of suitable housing, and proof of payment of the required fee.
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Frequently Asked Questions (FAQs):
- Investment options include direct and indirect investments, such as existing businesses, new businesses, investment funds, or bank deposits.
- Citizenship by naturalization is possible after five years of residing in Luxembourg.
- Benefits include stable foreign and European affairs, legal permits in a country with UN headquarters, optimal living standards, and visa-free travel within the EU.
This overview showcases a comprehensive understanding of the Luxembourg Investor Visa program, addressing key aspects and providing valuable insights into the application process and associated benefits.
