Luxembourg is one of the most attractive business destinations worldwide. For those who wish to reside in this EU nation with a flourishing economy, the Luxembourg Residency by investment program is the most efficient way to acquire such status.
While Luxembourg doesn’t have a citizenship by investment scheme, citizenship is possible. First, third-country nationals must obtain a residence permit and live in the Luxembourg territory for five years to order to receive a passport. To obtain a Luxembourg passport, third-country nationals must have a clean criminal record, have lived in Luxembourg for at least five years uninterruptedly, and attend the course “Living together in the Grand Duchy of Luxembourg” and pass a language test.
A Luxembourg resident permit entitles you to visa-free travel throughout the European Union, in addition to living in a safe and stable EU member country with good economic prospects (including all 26 Schengen member states). You can travel to 174 countries without a visa as a citizen.
For those willing to spend at least half of their year in Luxembourg, the Luxembourg investor scheme is a perfect way to gain European citizenship. The Luxembourg passport is one of the best globally, allowing for free movement within the European Union and 90 days of visa-free travel to the United States each year. Luxembourg has lower tax rates than most of Europe. If disposed of after six months and without 10% ownership in the last five years of the business, capital gains on locally traded stock can be tax-free. The Luxembourg Investor Program for Foreigners offers you a pathway to a secure and prosperous life.
Luxembourg Permanent Residency
After five years of uninterrupted living, it is possible to launch the application for permanent residency in Luxembourg.
The length of the stay is not deemed to be interrupted by:
Luxembourg Citizenship
Successful clients can apply for Luxembourgish citizenship after five years of continuous residence, gaining a passport to this EU nation. The final year of residence immediately preceding the citizenship application must have been uninterrupted. To receive citizenship, investors need to prove knowledge of the Luxembourgish language through an oral test and take an integration course.
Luxembourg Dual Citizenship
The Law, which was entered into force on January 1, 2009, allows dual citizenship or even multiple citizenships. Luxembourgian citizens who voluntarily either acquire or recover foreign citizenship will not lose their citizenship.
To obtain an investor residence permit, you must invest in the future or existing business in Luxembourg, in the future or existing investment management structure, or as a deposit with a financial institution.
The Luxembourg Residence by Investment program offers four different options:
1. Invest at least EUR 500,000 in an existing company with its registered office in Luxembourg and pledge to hold it for at least 5 years (investments must be at least 75% of equity capital. 25% of investments can be borrowed within a minimum period of three years) or;
2. Invest at least 500,000 euros in a new business with its registered office in Luxembourg and at least 5 jobs that must be created within 3 years after starting the business. Recruitment must be carried out in cooperation with the National Agency for Employment (Agence pour le développement de l’emploi – ADEM) Concerning investments in existing or not yet established enterprises (investment of at least 500,000 euros), the company must or will have to engage in commercial, handicraft, industrial activities or;
3. Invest at least EUR 3 million (investments must be at least 75% of own funds. 25% of investments can be borrowed within a minimum period of 3 years) in a management and investment structure, existing or not yet established, with its registered office in Luxembourg or;
4. Invest at least EUR 20 million in the form of a deposit of funds in a financial institution in Luxembourg, and with the obligation to keep the said deposit for at least 5 years. Investments must consist of 100% of their funds. They can consist of cash or financial instruments deposited with a single financial institution. The investor can invest using his name or through the intermediary of a third party.
An important aspect is for Luxembourg investor visa holders to commit to maintaining their capital injection for a minimum of 5 years for some of the options presented above.
The residence permits are valid for an initial period of three years under residence by investment. To renew their residence permit, investors must demonstrate having spent a significant length of time in the country (at least six months).
A series of requirements must be fulfilled to apply for Luxembourg Residency by Investment program. Check all the requirements for obtaining Luxembourg Investor Visa.
Accommodation:
Proof of suitable housing (rental agreement, property deed, etc.);
Financial Requirements:
Until applying for authorization to remain, third-country nationals must present their project or evidence of investment to the Minister of the Economy or the Minister of Finance and receive approval from the minister concerned. The concerned minister notifies the third-country national investor in writing. In the case of support, the third-country federal must apply for stay authorization before entering the country.
Criminal Record:
An extract from the criminal records or an affidavit (sworn oath) established in the country of residence.
Medical Tests:
Before applying for a residence permit, the young third-country national must undergo a medical check for foreigners as soon as possible, which includes:
Be over 18 years old
Not leave Luxembourg for more than six months in a row
The last application must be submitted to the Ministry of Economy or Finance, depending on the investment choice.
It can take around 4 to 5 months to obtain residency by investment in Luxembourg.
Privacy World offers its services to anyone, not only looking to obtain residency and/or citizenship processes but our experts figure out legal ways to:
Privacy World can also help you with incorporating your company in Luxembourg, assisting in getting you settled in the country and coordinating with you so that this experience will be less of a hassle.
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