Understanding Luxembourg’s Residence for Investors program, often compared to Golden Visa initiatives in other European countries, can be your gateway to obtaining permanent residency and citizenship in Luxembourg. Positioned at the heart of Europe, Luxembourg offers an exceptional standard of living, robust financial infrastructure, and strategic investment opportunities for discerning global investors. This comprehensive guide navigates the nuances of Luxembourg’s investor immigration pathway, providing you with actionable insights to begin your application process immediately.
The Luxembourg Investor Residence Program, sometimes informally referred to as a “Golden Visa” by international investors, is officially known as the “Luxembourg Residence by Investment Program.” This pathway enables qualified global investors to secure residency rights by making substantial financial contributions to the Luxembourg economy.
As a foreign investor seeking European residency, you can select from multiple investment routes, with minimum capital requirements typically starting at EUR 500,000. Investment options include business ventures, established companies, investment funds, or financial institution deposits. Upon completing your qualifying investment and meeting all legal requirements, you and your eligible family members will receive Luxembourg residence permits.
This investor residency pathway offers a strategic advantage for high-net-worth individuals, potentially leading to permanent residency status after continuous residence and, eventually, the possibility of Luxembourg citizenship. With its favorable tax environment, central European location, and multilingual business culture, Luxembourg offers investors both residential benefits and exceptional financial opportunities.
Different investment options include:
Foreign investors or third-country nationals can apply for a residence permit as investors, provided they plan to invest in the following:
- Investing in an Existing Luxembourg Company
As a foreign Investor, you can invest at least EUR 500,000 in an existing company with its registered office in Luxembourg while maintaining employment levels for at least 5 years. Investing at least €500,000 in an existing Luxembourg company for residency purposes requires a significant financial commitment alongside specific obligations. Investors must maintain both their initial investment and the company’s employment levels for a minimum period of 5 years. This means the capital must remain invested in the Luxembourg-registered company throughout this period, and the investor cannot reduce the workforce that existed at the time of investment. This pathway is designed to attract meaningful, long-term foreign investment that contributes to Luxembourg’s economic stability while providing investors with potential residency benefits.
- Starting a New Luxembourg Company
Investing at least €500,000 in a new Luxembourg business for residency purposes involves establishing a completely new company with its registered office in Luxembourg. This investment pathway requires not only the financial commitment but also a job creation obligation: investors must create at least five new job positions within 3 years of the company’s incorporation. An important regulatory requirement is that all recruitment for these positions must be conducted in collaboration with Luxembourg’s National Employment Agency (Agence pour le développement de l’emploi – ADEM). This approach differs from investing in an existing business as it focuses on generating new economic activity and employment opportunities in Luxembourg rather than maintaining existing positions. The investment must remain active for the required residency period, typically 5 years, though the job creation timeline is specifically set at 3 years from incorporation.
- Investing in Management and Investment Structures
Investing at least €3 million in a Luxembourg management and investment structure represents the premium tier of Luxembourg’s investment residency program. This pathway involves placing your capital in either an existing investment vehicle or creating a new one, with the crucial requirement that the structure must maintain its registered office in Luxembourg with “necessary substance.” The concept of substance means the structure cannot be merely a shell company or letterbox entity; it must maintain a genuine economic presence in Luxembourg with appropriate staffing, office space, operational activities, and decision-making capabilities. This substantial investment option offers flexibility in whether you create a new vehicle or invest in an established one, while focusing on legitimate financial structures that contribute to Luxembourg’s position as a global investment hub. Unlike other investment options, this pathway doesn’t specify particular employment creation requirements but instead emphasizes maintaining meaningful business operations within Luxembourg’s financial ecosystem.
- Depositing Funds in Financial Institutions
Investing at least €20 million in Luxembourg through a deposit program represents the highest tier investment option for residency seekers. This pathway involves placing a substantial €20 million deposit with a financial institution officially established in Luxembourg. The investor must formally commit to maintaining this full deposit amount for a minimum period of 5 years without withdrawal. Unlike the other investment options that require business activities or employment creation, this pathway is purely financial in nature, essentially a significant capital commitment to Luxembourg’s banking system. The deposit must remain with the Luxembourg financial institution for the entire 5-year period to satisfy residency requirements. This option is typically aimed at ultra-high-net-worth individuals seeking the most straightforward path to Luxembourg residency without the complexities of running a business, while still making a substantial contribution to Luxembourg’s financial sector through the deposited capital.
Application process:
As an investor planning to embark on the Luxembourg Residence by Investment journey, there are several procedures you need to take and requirements you need to fulfill.
- Own a valid passport.
- Apply for a temporary authorization with a copy of your valid passport, an extract from the criminal record, or an affidavit (sworn declaration) established in your country of residence to the General Department of Immigration of the Ministry of Home Affairs, responsible for applications concerning the free movement of persons (EU citizens and their families) and immigration (entry and residence of third-country nationals).
- The temporary authorization to stay valid for 90 days takes the Ministry of Home Affairs about 3 months. If you don’t receive any response, your application will be deemed rejected, but if accepted, you will receive a temporary authorization to stay through post.
- After this, you can go ahead and submit a type D visa application, presenting your authorization to stay to the Luxembourg diplomatic or consular representation in your country of origin, proof of investment (€500,000 in a new or existing company, €3 million in a management and investment structure, or the high-tier €20 million deposit to a financial institution), proof of suitable accommodation arrangements in Luxembourg, a clean criminal record from the country of origin and any other country where the applicant resided for more than one year in the past decade, evidence of health insurance coverage.
- Within 3 days of arrival at Luxembourg’s territory, you must make a declaration of arrival at the administration of the commune where you intend to establish residence, showing your valid travel documents (your passport, visa, residence permit, or authorization issued by another EU Member State, the original temporary authorization to stay), you could also be requested to show a valid proof of address (i.e., rental agreement, electricity bill, etc.), where applicable.
After completing this, you will receive a copy of the declaration of arrival as a receipt, which will serve as a right of residence, alongside your authorization to stay until the residence permit is issued.
- The next step is to apply for a residence permit, which requires you to undergo a medical check (including a tuberculosis screening) for foreigners by a doctor established in Luxembourg and authorized to work as a general practitioner. These medical examination results would then be sent to the General Department of Immigration of the Ministry of Home Affairs to allow the residence permit application to be processed.
When applying for a residence permit, the following documents must be attached to your application:
- A copy of your valid passport, in its entirety;
- 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 to the Ministry of Home Affairs, General Department of Immigration.
Once your application has been approved, you will receive a letter inviting you to make an appointment with the General Department of Immigration of the Ministry of Home Affairs to take your photograph and fingerprints, which will be incorporated into the residence permit. A few days after collecting the biometric data, you can pick up the residence permit at the General Department of Immigration by appointment. The residence permit, which takes the form of a chip card containing biometric data, includes the following information about you (surname, first name, nationality, date, and place of birth), as well as specific information about the residence permit (permit category, date of beginning and end of validity of the permit).
