Luxembourg Residence Permit For Private Reasons | A Complete Guide

What is Passive Income Visa?

Passive Income Visa refers to a visa system where applicants can obtain long-term residency in a destination country based on a certain amount of income/savings without the need to invest or work.

Generally speaking, passive income visa programs in various countries have the following characteristics:

1. Strict limitations on the source of income: The applicant’s income needs to be completely passive, such as interest from savings, financial trusts, pensions, or at least non-wage income like investment returns, dividends, and distributions.

2. Visa holders cannot utilize local resources: In theory, you can only consume in the destination country and cannot seek employment locally. You also need to purchase your own health insurance and cannot use free welfare resources such as medical services.

3. Potential for eventual immigration: Almost all countries with passive income visa programs allow participants to apply for permanent residency or citizenship after legally residing there for a certain period.

If you are interested in a passive income visa, you can read another guide on the website: “Global Passive Income Visas | An Incomplete Guide”.

Luxembourg Residence Permit For Private Reasons:

Luxembourg offers a non-profit residence permit, formally known as a “residence permit for private reasons.” This permit is specifically designed for financially independent individuals from non-EU countries who can demonstrate sufficient financial resources to reside in Luxembourg without needing to engage in local employment.

The core financial requirement for this visa stipulates that applicants must demonstrate an income level that meets or exceeds Luxembourg’s monthly social minimum wage for unskilled workers, even if they do not intend to work locally. This threshold currently stands at a minimum monthly income of €2,570.93.

Historically, Luxembourg’s non-profit visa was a prominent immigration pathway within this small European nation, drawing a significant number of applicants, particularly from China, the United States, and Russia. This was largely due to its considerably lower financial demands compared to the substantial investment amounts required for the investor visa, making it a more accessible option for many.

However, a significant change was implemented on May 12, 2023, with the introduction of new restrictions for the non-profit visa. Applicants are now mandated to demonstrate a sufficient connection to Luxembourg, an EU member state, or the Schengen Area. Examples of such connections include employment or investment within the EU, a pension disbursed from an EU institution, or familial ties in Luxembourg.

This policy revision has undoubtedly increased the complexity of applying for Luxembourg’s non-profit residence permit. Nevertheless, for individuals from non-EU regions, this program continues to represent one of the most viable avenues for obtaining residency in Luxembourg.

Application Process:

The application process for Luxembourg’s non-profit visa generally involves two main steps:

1. Overseas Application:

In this initial step, you’ll gather all required documents and submit a short-stay application for a Category D visa. You can do this online with the Luxembourg Ministry of Immigration or by visiting a Luxembourg embassy or consulate abroad.

The essential documents for this stage include:

• Applicant Identification: This includes passports for all main and dependent applicants, valid for at least 6 to 8 months with two blank pages, passport-sized photos, and documents proving relationships like birth and marriage certificates.

• Criminal Record Check: A certificate proving you have no criminal record.

• Luxembourg Residence Proof: To apply for Luxembourg’s non-profit residence, you generally need to rent or purchase a suitable property there. For a single applicant, the minimum size is 12 square meters. If you have dependents joining you, the minimum property size increases by 8 square meters for each additional dependent.

• Health Insurance: Proof that you’ve purchased Schengen-area valid health insurance covering Luxembourg for each main and dependent applicant, with a minimum coverage of €30,000 per year.

• Income Verification: Documentation proving your financial income.

• Proof of Connection: Evidence of your economic ties to Luxembourg, an EU country, or the Schengen Area.

Keep in mind that any documents originating outside Luxembourg must be notarized. If your documents are not in German, English, or French, they must be translated by an officially designated agency.

The processing time for this stage typically won’t exceed three months. According to official statements, if you don’t receive any official response after three months, your visa application is likely considered rejected. If approved, you’ll receive a 90-day short-stay visa for Luxembourg.

2. In-Country Registration

Once you enter Luxembourg with your visa, you’ll need to submit a declaration of arrival to the Luxembourg Residence Department within three days of entry. Following this, you’ll undergo a medical examination in Luxembourg and then submit your application for the actual residence permit.

After successfully obtaining your Luxembourg residence permit, you can continue to reside in the country.