Luxembourg has a super interesting golden visa scheme in Europe for HNW individuals to invest, work, study and do business. Luxembourg is also one of the richest countries in the World and a founding member of the European Union, OECD, United Nations, NATO, and Benelux.
- EU member country: since 1 January 1958
- Euro area member since 1 January 1999
- Schengen: Schengen area member since 26 March 1995
Luxembourg is also one of the three official capitals of the European Union and a smallest sovereign state in Europe. The Schengen agreement for free movement was named after the Luxembourg village of Schengen. Luxembourg scored the No.1 spot for the most valuable citizenship in the world, in our Best citizenships index 2020.
Golden Visa
The Luxembourg golden visa scheme launched in March 2017 to encourage economic growth. The Law of 29 August 2008 on the freedom of movement of people and Immigration Law was amended on 8 March 2017 in line with the Government’s economic diversification and growth policy to encourage entrepreneurship. Any third-country national who plans to make any of the following investments can apply for an investors’ residence permit. It is not possible to invest in real estate either directly or indirectly under the golden visa rules.
1. Business
Investment of at least EUR 500,000 in a company and five work positions: The investment can be in an already existing company or a new company (still to be created). In both cases, the company must have its registered office in Luxembourg and carry out a commercial, artisanal or industrial activity. When the company is new, the five work positions must be created within three years of the incorporation of the business and the recruitment of the staff must be done in collaboration with the National Employment Agency. When the company already existed, at the time of making the investment, the foreign investor must also make a commitment to keep the investment and the work positions for at least 5 years (or)
2. Management and Investment:
Investment of at least EUR 3 million in a management and investment structure, either existing or still to be created, with its registered office in Luxembourg where it must have and maintain the necessary substance, also with a solid internal governance system (including adequate internal control mechanisms and appropriate accounting procedures) and at least two job positions; or
3. Bank Deposit
Deposit of funds with a financial institution of at least EUR 20 million the financial institution must be established in Luxembourg and the investor must make a commitment to keep the deposit for at least 5 years.
Direct and indirect investments concerning the acquisition or rental of real estate are not taken into consideration for investors to obtain a Golden residence permit.
Investments can be made by the investors themselves or through the intermediary of an investment structure.6 Intermediaries may include other investment funds, family wealth management funds, private equity or venture capital funds, etc. Those intermediaries have to be entirely owned by the investor applying for a residence permit.
Investor permit
The investors residence permit is issued initially for 3 years which can then be extended depending on the investments maintained. The investor and family members must visit and file in person with the migration authorities.
The residence permit granted to family members of foreign investors grants them the right to education, vocational and professional training, as well as the right to employment or self-employed work with free movement in the Schengen area.
- The Ministry of Economy is competent to examine and verify investments of at least EUR 500,000 in an existing business or in a new business still to be created.
- The Ministry of Finance is responsible for examining and verifying investments of at least EUR 3 million in a management and investment structure, whether already existing or still to be created; or at least EUR 20 million in the form of a deposit with a financial institution established in Luxembourg.
- The National Employment Agency monitors when foreign investors make an investment of at least EUR 500,000 in a new company they must also create five work positions in cooperation with the Agency.
The Immigration Directorate is the competent authority to issue and renew the residence permit
Luxembourg Citizenship
Foreign investors have to follow general naturalisation established in the Law of 8 March 2017 on Luxembourgish nationality. Under this Law, third-country nationals who wish to be eligible for Luxembourgish nationality must:
- Have a clean criminal record.
- Have resided in Luxembourg on the basis of a legal permit for at least five years and in the year preceding the application for citizenship must have resided in Luxembourg uninterruptedly;
- Attend the course “Living together in the Grand Duchy of Luxembourg”;
- Pass a language test at A2 level in oral expression and B1 in comprehension. German and French are official languages of Luxembourg
Luxembourg Passport
In 2019, Luxembourg has the 5th powerful passport in the world with visa free travel to 186 countries. The World Tourism Organization also published a report in 2016 ranking the Luxembourgish passport 1st in the world
Every Luxembourgish citizen is also a citizen of the European Union. The passport, along with the national identity card allows for freedom of movement in any of the states of the European Economic Area and Switzerland.
Luxembourgish biometric passports are valid for five years for bearers aged four and over, and valid for 2 years for children under four.
