The Grand Duchy of Luxembourg is a Western European country bordering Belgium, Germany, and France. Given its geographic location, you will not be surprised to learn that residents have access to the entire Schengen area. It is Europe’s 7th smallest country by area, and has a population of approximately 675,000. The country is a representative democracy with a constitutional monarch (currently Grand Duke Henri). Luxembourg is a stable, developed nation with an advanced economy. In fact, it has one of the world’s highest GDPs per capita. Citizens speak the local language, Luxembourgish; but are also fluent in French, German, and English.
Its capital, Luxembourg City, is one of the four institutional seats of the EU, and houses the Court of Justice of the European Union. The multi-level city has a well-preserved historic quarter, and its fort has been declared a UNESCO World Heritage Site.
Having recently visited Luxembourg City, we can personally testify that the roads in Luxembourg are immaculate, the internet is fast, the food is delicious, and the people are friendly. The city absorbs the best aspects of its neighbors, and maintains its own unique identity. It is a very livable city, with lots of nearby places to go for weekend getaways.
Foreigners account for nearly half the population of Luxembourg, so it is unsurprising that they have an attractive residency and citizenship by investment programs. Luxembourg offers a Golden Visa opportunity with no obligation to purchase real estate. Its investor-friendly legislation is geared towards high-net worth individuals, but can be attainable if you meet minimum income thresholds. Here is a brief introduction if you are interested in becoming a Luxembourg resident:
Residency by Investment
The first route is to pursue residency by investment. If you are from a non-EU country, you can choose from four investment options:
- You can invest at least EUR 500,000 in an existing Luxembourg company. The company must have active commercial, industrial, or craft activities. Additionally, you must maintain the existing employment structure for five years.
- If you are Entrepreneurial, you spend at least EUR 500,000 forming a new Luxembourg company. Again, the company will need to have commercial, industrial, or craft activities. Once you form the company, you will need to create at least five employment positions in the following three years.
- If you have the funds, you can invest a minimum of EUR 3 million in an existing or new investment or management structure. The entity must have a registered office in Luxembourg, and have appropriate substance.
- Incredibly wealthy individuals have the option of depositing a minimum of EUR 20 million into a financial institution established in Luxembourg. The balance must be maintained for at least five years.
If you choose the residence by investment option, you will need to submit an investment application to the Ministry of Finance or the Ministry of Economy. In order for the residency permit to be processed, the Ministry of Foreign Affairs and your current country of residence will need to sign off before you are granted final approval. If successful, you will receive a category “D” visa.
Your residence permit will be valid for an initial period of three years, subject to renewal. To renew your residence permit, you will need to demonstrate that you have spent a significant length of time in Luxembourg (at least six months).
Residence by Private Reasons
The more accessible route is “residence by private reasons.” Please note, if you are granted residency under this scheme, you cannot be employed within the country. Third-country nationals (everyone except citizens of EU countries, Iceland, Liechtenstein, Norway and Switzerland) can obtain residence by private reasons by fulfilling the following requirements:
You must prove that you can live off your own financial resources. Specifically, you will need to show a regular flow of income of at least EUR 27,000 per year. Ideal candidates will have a salary, rental earnings, investment income, pension etc. from a country outside of Luxembourg. Regular income is the goal; bank savings alone might not be sufficient.
In addition to meeting the income requirement, you will need to have permanent accommodation in Luxembourg. The property can be owned or rented, but you will need to have corresponding third-party liability insurance and property insurance.
Under the residence by private reasons option, you will submit your application to the Ministry of Foreign Affairs. If approved by Luxembourg and your current country of residence, you will be granted a category “D” visa category, and you can collect your permit at your local consulate or embassy.
Your permit will be valid for an initial period of one year, subject to renewal.
Regardless of the route you choose, you will need to:
- Demonstrate your intention to reside permanently in Luxembourg.
- Travel to Luxembourg (within 90 days of receiving authorization)
- Undergo a medical check
- Register with your commune of residence within three days of your arrival.
You should have the following documents ready if you are applying for Luxembourgish residency:
- Application form
- Passport-sized photo
- Proof of accommodation
- Valid passport
- Birth certificate
- Proof of income -bank statements, employment contract, etc.
- Clean criminal record
- Health insurance policy
Under either scheme, the processing time for a Luxembourgish residency permit is approximately six months from application submission. The main applicant may include their spouse and dependent children under 21 in their residency application.
Citizenship in Luxembourg:
If you are on the hunt for an EU passport, you will be thrilled to learn that residents can apply for Luxembourgish citizenship after five years of continuous residence. Please note, the final year of your residence (the one immediately preceding your citizenship application) must have been uninterrupted. In addition, you will need to prove knowledge of the Luxembourgish language (via an oral test and integration course) in order to qualify for citizenship.
Luxembourg is the latest country we have discussed as a residency option. As with our earlier articles, we recommend checking the official residency requirements on Luxembourg’s immigration website and contacting qualified immigration lawyers.
If you want to an introduction to other residency by investment programs, you should read our articles: Residency in Argentina: A Helpful Guide, Securing A Portuguese Golden Visa in 2024, and Requirements To Reside In Georgia.