Country Profile:

Located in inland Europe, Luxembourg is surrounded by France, Germany, and Belgium. It is one of the smallest yet most affluent sovereign states in the world, with an advanced economy and one of the world’s highest GDP (PPP) per capita as per IMF and World Bank estimates.

Capital: Luxembourg City

Population:  660,809 (2023, 163rd)

Ethnic Groups: 52.8% Luxembourgers, 14.5% Portuguese, 7.6% French, 3.7% Italians

Area: 2,586.4 km² (168th)

Offical Language: Luxembourgish

Currency: Euro (€) (EUR)

GDP per Captial: $143,303 (3rd)

How To Immigrate To Luxembourg

Historically, Luxembourg wasn’t a major destination for migrants. Yet, with the EU’s evolution, the nation has seen a rise in European settlers. For non-EU residents, income visas have become a primary relocation method. Furthermore, the introduction of the Luxembourg residency by investment program in March 2017 has paved another pathway for non-EU nationals to move there.

Additionally, Luxembourg extends various immigration options like work visas and research scholar visas for international applicants.

Residency By Investment:

Introduced in 2017, Luxembourg’s residency by investment program allows foreign nationals to secure a residency visa through one of four investment avenues:

1. Invest €500,000 in a company registered in Luxembourg and hold the asset for more than 5 years, ensuring its value is maintained.

2. Invest €500,000 to register a new company in Luxembourg, and within 3 years of the investment, with the help of the National Employment Agency, employ more than five full-time local workers.

3. Invest €3 million in local funds like family wealth funds, venture capital, private equity funds, etc., and hold for more than 5 years.

4. Deposit more than €20 million in a local bank and maintain it for over 5 years.

The entire investment visa application process must be done offline:

1. Submission: The applicant needs to submit the application to the immigration department, which is then reviewed and approved by the Luxembourg Department of Economic Affairs or the Ministry of Finance.

2. Approval: After passing the review, the investor must undergo a medical examination locally within 3 days of arriving in Luxembourg and then receive a visa valid for 5 years.

The investment residency has a validity of 5 years. Applicants can obtain visas for their spouses and children under 21 years old. If the investment conditions are maintained after expiration, they can renew the visa indefinitely.

Interestingly, the appeal of this scheme in Luxembourg has been somewhat muted. In 2018, just four such applications received the green light, and in 2019, only two. There haven’t been any other known approved applications since then,and the Ministry of the Interior has not received any renewal applications from those six investors.. Furthermore, neither the €3 million nor the €20 million investment options have attracted any takers.

This tepid response is a pivotal reason behind Luxembourg’s decision to revisit and tweak its residence permit for private reasons policies.

Residence Permit For Private Reasons:

The Luxembourg residence permit for private reasons is a visa offered to non-EU region citizens. It requires applicants to have sufficient financial resources to live locally without needing to work, to be in good health, and to have no criminal record.

The core financial requirement for this permit is that the applicant has an annual income of €27,000 (or €2,300 per month) that doesn’t rely on Luxembourg’s resources.

This permit, which historically drew significant interest from individuals in China, the USA, and Russia, was often chosen for its simplicity over the investment visa. However, as of May 12, 2023, the application requirement became more stringent. Now, applicants must showcase a concrete relationship with Luxembourg, EU nations, or the Schengen zone, primarily rooted in economic affiliations like employment, investments, or European-based pensions.

The current visa application process can roughly be divided into two steps:

1. Application from abroad: Applicants need to submit a short-term residency application online to the Luxembourg Immigration Department and apply for a Type D visa.

The required documents include: a valid passport, a proof of no criminal record, proof of residency address in Luxembourg, health insurance coverage valid in Luxembourg, proof of the relationship between the main and secondary applicants, proof of financial capability, and proof of ties with Luxembourg, the EU, or the Schengen area.

The review period for this stage can take up to 3 months. Once the visa is approved, applicants can receive a short-term Luxembourg visa that allows entry for 90 days.

2. Registration after entering the country: After entering Luxembourg with the visa, the applicant needs to submit a declaration of entry to the Luxembourg Residency Department, complete a medical examination in the country, and then submit a residency permit application.

The residence permit for private reasons has a maximum validity of 3 years and can be renewed an unlimited number of times.

Start-up Visa:

The Luxembourg residence permit for self-employed(independent) person is issued to foreigners who wish to establish a business based in Luxembourg. This visa doesn’t place much emphasis on the amount of investment (which can start as low as 1 Euro) but requires applicants to have an accredited business plan, and the business they set up should be beneficial to the national interests of Luxembourg.

Another challenge with the Luxembourg Entrepreneur Visa is that in order to establish a company in Luxembourg, one needs to obtain a local business license. However, a prerequisite for getting this business license in Luxembourg is that the applicant must already have a local residency permit (exceptions are made only in rare cases where the business plan is exceptionally good and gets approval from the Luxembourg Ministry of the Interior).

Therefore, in most scenarios, only foreigners who already have legal residency in Luxembourg can apply for the Luxembourg Entrepreneur Visa.

The entire visa application process takes around 6 months.

Naturalization:

For any extended stay visas in Luxembourg, the main applicant can have their spouse and children (up to 21 years old, with those between 18 to 21 needing to establish their financial reliance) accompany them as dependent applicants. The primary applicant’s parents can also apply for a residency visa, but approval from the Ministry of the Interior is required.

Foreigners who have legally resided in Luxembourg continuously for over 5 years (with no single absence exceeding 6 months and total absences not exceeding 10 months over the 5 years) can apply for permanent residence in Luxembourg. Applicants must demonstrate their integration into Luxembourg society. Evidence of this integration can include membership in local social clubs, proficiency in the local language, and testimonials from local citizens, among other things.

Permanent residents of Luxembourg who have continuously resided in the country for a full year without leaving have the right to apply for a passport. Those applying for a passport must maintain a good reputation locally, pass a French or German language test, reside continuously in the country without leaving for a year before the citizenship application, and complete the government’s community course titled “Living Together in the Grand Duchy of Luxembourg”.

However if you have completed more than 7 years of education in Luxembourg (following the Luxembourgish curriculum), you can qualify for citizenship without taking a test.

Passport Power:

Luxembourg recognizes dual citizenship. Its passport is ranked joint fourth globally. Its citizens can freely travel (either visa-free or with visa on arrival) to 191 countries and regions worldwide, including Europe, America, Australia, New Zealand, Russia, Japan, South Korea, Singapore, Hong Kong and Taiwan.

Useful Links:

Luxembourg Residency By Investment Program：https://guichet.public.lu/en/entreprises/creation-developpement/projet-creation/entree-sejour/investisseur-pays-tiers.html

Luxembourg Visa Online Platform：https://guichet.public.lu/en.html

Conditions of residence in Luxembourg for private reasons for third-country nationals: https://guichet.public.lu/en/entreprises/ressources-humaines/recrutement/ressortissant-pays-tiers/raison-privees.html