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Investing in Luxembourg
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Over the past decade, Luxembourg has actively positioned itself as an appealing destination for non-EU nationals through its Residence by Investment (RBI) program. Initially launched in 2017, the initiative was designed to stimulate economic growth by encouraging foreign capital into local enterprises and financial institutions. However, as of 2025, the program is under scrutiny due to a combination of underwhelming uptake and evolving EU-wide concerns surrounding investor migration schemes. With policy reviews underway and potential reforms—or even the program's discontinuation—on the horizon, it has become increasingly important for prospective applicants to understand the current landscape.
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UTC+1
2,586 km2
Euro
Luxembourg City
Luxembourgish (official)
French (official), German (official)
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Understanding Luxembourg's Investor Immigration Program
- Introduced in 2017, Luxembourg's Residence by Investment (RBI) program was designed to attract non-EU nationals by offering a pathway to residency through significant economic contributions. Despite its strategic intent, the program has experienced limited uptake, prompting discussions about its future viability.
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Investment Pathways
- Prospective investors can choose from four distinct avenues, each tailored to different investment capacities and business interests:
- Investment in an Existing Company: Allocate a minimum of €500,000 into a pre-established Luxembourg-based enterprise engaged in commercial, industrial, or craft activities. The investor must commit to maintaining the existing employment levels for at least five years.
- Creation of a New Business: Invest at least €500,000 to establish a new company with its registered office in Luxembourg. This venture should generate a minimum of five full-time positions within three years of incorporation, with recruitment facilitated through the National Employment Agency.
- Investment in a Management and Investment Structure: Contribute a minimum of €3 million to an existing or newly created investment or management structure domiciled in Luxembourg. This entity must have appropriate substance, including adequate premises, human and financial resources, and at least two full-time employees other than the investor.
- Bank Deposit: Place at least €20 million in a financial institution established in Luxembourg, to be maintained for a minimum of five years. The funds must be unencumbered, consisting entirely of the investor's own assets, and free from any liens or pledges.
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Eligibility Requirements
- To qualify for the RBI program, applicants must meet several criteria:
- Clean Criminal Record: Provide police clearance certificates from the applicant's country of residence and any other countries where they have resided.
- Proof of Financial Stability: Demonstrate sufficient financial resources to support themselves and any dependents, ensuring they can live in Luxembourg without recourse to the national social assistance system.
- Health Insurance: Maintain comprehensive health insurance coverage valid in Luxembourg and the broader EU.
- Commitment to Reside: Show intent to establish residence in Luxembourg, which may include securing accommodation and integrating into the local community.
- Applicants must also obtain prior approval for their investment project from the Ministry of the Economy or the Ministry of Finance, depending on the nature of the investment.
Application Process and Timeline
Application Process and Timeline
Obtaining residency in Luxembourg through investment in 2025 involves a clear, multi-step process: pre-approval, application submission, post-approval procedures, and final residence permit issuance.
Pre-Approval: Securing Ministerial Endorsement
The first step requires prior approval from the Ministry of the Economy or Finance, depending on the investment type. Applicants must submit a detailed file proving the source of funds and economic value of the project. This approval reflects government backing of the proposed investment.
Application Submission: Formalizing the Residency Request
Following ministerial approval, applicants proceed to submit their residency application to the Immigration Directorate of the Ministry of Foreign and European Affairs. The application package should include:
- A duly completed application form accompanied by a recent passport-sized photograph.
- A valid passport with a minimum validity extending beyond the intended stay.
- Proof of accommodation in Luxembourg, such as a lease agreement or property deed.
- Evidence of comprehensive health insurance coverage applicable in Luxembourg.
- A police clearance certificate from the applicant's country of residence and any other countries where they have resided.
- Documentation verifying the fulfillment of the investment conditions stipulated in the pre-approval phase.
- Proof of financial self-sufficiency to support oneself and any dependents.
Upon submission, the Ministry of Foreign Affairs conducts a thorough review to ensure compliance with all legal and regulatory requirements.
Post-Approval Steps: Finalizing Residency Formalities
Once the application receives approval, the following steps ensue:
- Visa Issuance: Applicants requiring a long-stay visa (Type D) must apply at the Luxembourg embassy or consulate in their country of residence. This visa is typically valid for 90 days and permits entry into Luxembourg to complete the residency process.
- Entry into Luxembourg: Upon arrival, applicants must register their presence with the local municipal office (commune) within three days. This registration involves submitting identification documents, proof of address, and the visa.
- Medical Examination: Applicants are required to undergo a medical examination, including a general health check and a tuberculosis screening, conducted by authorized medical professionals in Luxembourg.
- Residence Permit Application: Subsequently, applicants submit a formal application for the residence permit, providing all necessary documentation and evidence of compliance with the investment and residency requirements.
Processing Time: Anticipating the Duration
The full process—from pre-approval to residence permit issuance—usually takes about six months. Timelines may vary based on individual cases and administrative factors. With careful preparation at each step, investors can smoothly secure residency in Luxembourg.
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Benefits of the Program
- Luxembourg's Investor Immigration Program offers a multitude of advantages, making it an attractive option for global investors seeking residency in a stable and prosperous European nation.
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Residency Advantages
- Visa-Free Travel within the Schengen Area: Investor residence permit holders can travel freely across the Schengen Zone without additional visas, easing both business and leisure trips in Europe.
- Access to High-Quality Healthcare and Education: Residents benefit from Luxembourg's excellent public services, including a strong healthcare system and quality education, ensuring a high standard of living.
- Inclusion of Family Members: The program allows immediate family members, including spouses and dependent children, to join under the same residency permit, ensuring families can relocate together and access residents' rights and services.
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Path to Citizenship
- After five years of continuous legal residence in Luxembourg, investors and their eligible family members may apply for Luxembourgish citizenship. The final year of residence must be uninterrupted.
- Language Proficiency and Integration Requirements: Applicants must prove Luxembourgish language proficiency, usually through an oral exam, and complete a course or exam on "Living together in Luxembourg," covering rights, institutions, and history.
- Dual Citizenship Permitted: Luxembourg permits dual citizenship, allowing new citizens to keep their original nationality. However, applicants should confirm if their home country allows dual nationality.
- Global Mobility and EU Rights: As of 2025, Luxembourgish passport holders can access 188 countries visa-free or with visa-on-arrival, making it one of the world’s most powerful passports. Citizens also enjoy EU rights, including the freedom to live, work, and study in any EU country.
Recent Developments and Potential Program Termination
Recent Developments and Potential Program Termination
Since its inception in 2017, Luxembourg’s Investor Immigration Program has experienced minimal engagement, prompting governmental reassessment and potential discontinuation.
Governmental Review and Legislative Considerations
Due to the program's limited success, Luxembourg's government has begun a review to evaluate its effectiveness and alignment with national interests. This marks a shift from 2023, when termination was not a priority. Discontinuing the program would require legislative action, including drafting a bill, State Council approval, and parliamentary debates and votes.
Low Uptake and Program Performance
In seven years, the program attracted just 15 applicants. In 2023 and 2024, six applications were submitted, with four rejections, though the Ministry of Home Affairs hasn't disclosed the nationalities or reasons for the refusals.
Broader EU Context and Precedents
The European Court of Justice recently declared Malta's "golden passport" scheme illegal, citing security risks and the sale of EU citizenship. This highlights the EU's push to limit investor-based migration programs that threaten its core values.
European Union Scrutiny and Pressure
The European Commission has raised concerns about investor residence schemes, citing risks like money laundering and security issues. Since Russia’s 2022 invasion of Ukraine, scrutiny has increased, with calls to end such programs. Luxembourg’s scheme lacks safeguards such as application caps, transparency, and economic impact assessments.
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Comparative Analysis with Other EU Programs
- Several EU countries have recently tightened or restructured investor immigration programs, and Luxembourg’s scheme remains active amid this evolving landscape.
- Ireland: Ireland's Immigrant Investor Programme, launched in 2012, closed to new applicants on February 15, 2023, after reviews raised concerns over risks like money laundering. The government deemed the program no longer aligned with current national needs.
- Spain: Spain's Golden Visa program, launched in 2013, offered residency for real estate investments but faced criticism over rising housing costs. As a result, it was officially ended on April 3, 2025, to ease housing pressures and address EU concerns.
- The Netherlands: The Netherlands has restructured its investor visa program, tightening requirements and oversight to adopt a more cautious approach to investment-based immigration.
- Implications for Investors: Across the EU, investor immigration programs are facing greater scrutiny, with many being restructured or closed. Luxembourg’s program remains active but has seen little interest, raising questions about its future. Investors should stay informed and explore alternative options that meet their goals and comply with changing EU rules.
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Practical Considerations for Prospective Investors
- As Luxembourg's Investor Immigration Program faces potential discontinuation, individuals contemplating this pathway must approach the process with diligence and foresight.
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Due Diligence: Engaging Legal and Financial Experts:
Before applying, it’s essential to consult legal and financial experts familiar with Luxembourg’s immigration and investment rules. Their guidance ensures compliance, clarifies requirements, and helps align investments with your goals. -
Exploring Alternative Residency and Citizenship Options:
With EU investment immigration tightening, investors should explore alternatives like Golden Visa programs in Greece and Hungary, or new residency options in Italy and Portugal for entrepreneurs and remote workers. These may better suit individual goals and circumstances. -
Timing: Acting Promptly Amidst Regulatory Changes:
Time is key for those eyeing Luxembourg’s Investor Immigration Program, as termination is under discussion. With no set end date, applicants should prepare and apply promptly before policy changes take effect.
Conclusion
Luxembourg’s Investor Immigration Program, though currently active, stands at a crossroads amid shifting national priorities and increasing EU scrutiny. For investors seeking European residency, it remains a compelling—albeit time-sensitive—option. Careful planning, professional guidance, and prompt action are essential in navigating this evolving landscape. As the regulatory environment tightens across the EU, adaptability and foresight will be key in identifying the most suitable and sustainable pathways forward.
FAQ about Investing in Luxembourg
1. What is Luxembourg’s Investor Immigration Program?
It is a Residence by Investment (RBI) scheme launched in 2017, allowing non-EU nationals to obtain residency in Luxembourg by making a substantial financial investment in the country’s economy.
2. What are the main investment options available?
Applicants can choose to:
- Invest €500,000 in an existing Luxembourg company.
- Invest €500,000 in a new business that creates at least five jobs.
- Commit €3 million to an approved management and investment structure.
- Deposit €20 million in a Luxembourg financial institution for five years.
3. Who is eligible to apply?
Applicants must be non-EU nationals with a clean criminal record, sufficient financial means, valid health insurance, and a genuine intention to reside in Luxembourg.
4. How long does the application process take?
From pre-approval to residence permit issuance, the process typically takes around six months, depending on the completeness of documentation and administrative processing.
5. Is the program still open in 2025?
As of 2025, the program remains in place but is under government review and may be discontinued soon due to low uptake and EU-level concerns. Interested individuals are advised to apply promptly if eligible.
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