Luxembourg

Citizenship by Investment Overview

Investment

Minimum contribution of EUR 500,000

Key Benefit

Visa-free access to the EU and Europe’s Schengen Area

Luxembourg Residence by Investment Program Overview

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 Residence by Investment Program is the most efficient way to acquire such status. Under this program, wealthy individuals can make a significant contribution to the country and become Luxembourgish residents within approximately six months, with the possibility to acquire citizenship after five years.

Benefits of Luxembourgish Residence by Investment

  1. Visa-free access to the EU and Europe’s Schengen Area
  2. High quality of life, stable political environment, and investor-friendly legislation
  3. Low investment threshold, with no obligation to purchase real estate
  4. Flexible and practical corporate law for rapid company formation
  5. No wealth tax and favorable inheritance and capital gains taxation regime

Requirements of the Luxembourg Residence by Investment Program

To qualify for residence, applicants can choose between the below two options:

Residence by investment

Investors from non-EU countries can choose one of the following four investment options:

  1. A minimum of EUR 500,000 into an existing Luxembourg company (with commercial, industrial, or craft activities) and commit to maintain the existing employment for five years
  2. A minimum of EUR 500,000 into a new Luxembourg company (with commercial, industrial, or craft activities) and commit to create at least five employments in the following three years
  3. A minimum of EUR 3 million into an existing or new investment or management structure, with a registered office in Luxembourg, which must have appropriate substance
  4. A minimum of EUR 20 million by deposit into a financial institution established in Luxembourg, which must be maintained for at least five years

Residence by private reasons (where the successful applicant cannot be employed in the country)

Individuals from developing nations can apply for residence by private reasons by fulfilling the following requirements:

  • Prove that they can live off their own financial resources (proof of a regular flow of income of at least EUR 27,000 per year is required; bank savings alone might not be considered sufficient
  • Have permanent accommodation in Luxembourg, which includes third-party liability insurance and property insurance for rented or purchased property

Procedure for the Luxembourgish Residence by Investment Program

Applications to the program must be made through the prescribed forms and must be accompanied by the appropriate fees and supporting documents. To obtain the residence permit, an applicant must demonstrate the intention to reside permanently in Luxembourg.

Once the initial due diligence checks have been completed, then the applications can be submitted.

Under the residence by investment option, an investment application is submitted to the Ministry of Finance or the Ministry of Economy. If approved, the Ministry of Foreign Affairs analyzes the application for final approval. Thereafter, a visa category D is requested from the applicant’s current country of residence, following approval.

Under the residence by private reasons option, an application is submitted to the Ministry of Foreign Affairs. If approved, a visa category D is requested from the applicant’s current country of residence and collected at the local consulate or embassy.

Under both options, the client:

  • Travels to Luxembourg (within 90 days of receiving authorization)
  • Undergoes a medical check
  • Submits their application for the residence permit
  • Registers with their commune of residence within three days of their arrival

The residence permits are valid for an initial period of three years under residence by investment, or one year under residence by private reasons, subject to renewal. To renew their residence permit, investors must demonstrate having spent a significant length of time in the country (at least six months).

Luxembourgish Citizenship Following Residence by Investment

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 Residence by Investment Frequently Asked Questions

  • What is the Luxembourg Residence by Investment Program?

    The Luxembourg Residence by Investment Program grants residence to individuals and their families through significant economic contributions to the country.

  • What are the investment options available for the Luxembourg Residence by Investment Program?

    Investment options include either investing in a Luxembourg company, an investment structure, or depositing funds into a financial institution. Alternatively, by proving sufficient financial resources and permanent accommodation in Luxembourg.

  • What are the benefits of obtaining Luxembourg residence through investment?

    Benefits include the right to live, work, and study in Luxembourg, visa-free travel within the Schengen Area, and access to a favorable tax regime.

  • What is the minimum investment required for the Luxembourg Residence by Investment Program?

    The minimum investment starts at EUR 500,000 for investments in Luxembourg businesses.

  • How long does it take to process an application for the Luxembourg Residence by Investment Program?

    Processing times for residence by investment applications may vary. Please contact us to find out more.

  • Can family members be included in the Latvia Residence by Investment application?

    Yes, the main applicant can include their spouse and dependent children under 18 years old.

  • What documents are required for the Luxembourg Residence by Investment application?

    Required documents include a valid passport, proof of investment or contribution, a clean criminal record, and other supporting documents.

  • What are the residence requirements for the Luxembourg Residence by Investment Program?

    To renew their residence permit, applicants must demonstrate having spent a significant length of time in the country (at least six months).

  • Is it possible to obtain Luxembourg citizenship through the Residence by Investment Program?

    Yes, after maintaining residence for five years, investors may be eligible to apply for Luxembourg citizenship.

  • What is the process for applying to the Luxembourg Residence by Investment Program?

    Applicants must choose a qualifying investment, submit the application with the necessary documents, and undergo a due diligence process.

Country Information

Luxembourgish residents benefit from the country’s status as the largest private banking center in the Eurozone, as well as its top 10 World Happiness Report ranking.

Population:

661,000

Languages:

Luxembourgish, French, and German, with English widely spoken

Economy:

Strong, high-income, innovation-driven

Currency:

Euro

Living in Luxembourg

One of the world’s smallest countries, Luxembourg lies in Northwestern Europe and has an impressive standard of living. The country is bordered by Belgium on the west and north, Germany on the northeast and east, and France on the south — making it an excellent choice for international trade and connectivity, as well as a melting pot of cultures.

Luxembourg ranks 8th out of 149 countries on the World Happiness Report 2021, with the score based on measures including GDP, social support, corruption levels, and personal freedom.

The country’s expatriate community, which comprises almost half of the population, is drawn to the EU nation’s open society, along with its cosmopolitan aesthetic and renowned quality of life.

Families living in Luxembourg enjoy the safe and family friendly environment, high-standard healthcare (which grants all citizens with basic state-funded medical cover), and a multilingual education system that is almost fully state-funded. Foreign students are welcome at Luxembourg University, one of Europe’s most international academic institutions — with students from 120 countries around the world.

In addition, Luxembourgers can take advantage of the world’s first free public transport, traveling freely by bus, train, and tram.

The Old Quarter of Luxembourg City
The Old Quarter of Luxembourg City

A Rich Business Landscape

The Grand Duchy of Luxembourg has a long tradition of private wealth activities.

 

Its AAA credit ranking is ideal for business endeavors. Luxembourgers benefit from the country’s strong financial industry, which has developed as a private banking center and grown into a truly diversified hub for investment funds, banks, and insurance and reinsurance companies.

 

Its economy is notable for its close connections with the rest of Europe and its strong EU ties.

Legal and Social Security and Personal Freedom

The country is the world’s only remaining sovereign grand duchy, with a constitutional monarchy and a representative democracy.

 

Luxembourg is one of the EU’s original founding members and, as such, has the highest number of EU institutions and bodies.

 

Luxembourg City, the nation’s capital city, is one of the four official capitals of the European Union — alongside Brussels, Frankfurt, and Strasbourg — and hosts the seat of the Court of Justice of the European Union, which is the highest judicial authority in the EU.

 

The nation boasts a comprehensive and effective social security system that includes family benefits such as birth allowance, maternity and paternity leave, and adoption and parental leave, among many others.

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