Boasting one of the world’s highest GDP per capita and holding a coveted AAA credit rating, the Grand Duchy of Luxembourg presents an ideal choice for investors and entrepreneurs seeking a thriving business environment and an appealing option for personal residence. As a founding member of the European Union, this nation provides not only a superior quality of life but also advanced infrastructure.
Program Overview
The Luxembourg Residency Investment Program enables foreign individuals to invest in the country and seek a residence permit.
Program Benefits
- Visa-free entry to the European Union and Schengen Area
- Exceptional quality of life, political stability, and business-friendly regulations
- Low investment requirements, without the need for real estate purchase
- Convenient and flexible corporate laws for quick company establishment
- Absence of wealth tax, along with favorable inheritance and capital gains tax policies
Program Qualifications
Eligibility Criteria for Luxembourg Residency by Investment:
Investors from non-EU countries have the choice of four investment options:
- Invest a minimum of EUR 500,000 into an existing Luxembourg company involved in commercial, industrial, or craft activities and commit to maintaining existing employment for five years.
- Invest a minimum of EUR 500,000 into a new Luxembourg company engaged in commercial, industrial, or craft activities and commit to creating at least five jobs within the following three years.
- Invest a minimum of EUR 3 million into an existing or new investment or management structure with a registered office in Luxembourg, demonstrating appropriate substance.
- Deposit a minimum of EUR 20 million into a financial institution established in Luxembourg, with the requirement to maintain the deposit for at least five years.
Residence by Private Reasons (for applicants not seeking employment in the country):
Individuals from developing nations may apply for residence by private reasons by meeting the following criteria:
- Demonstrate the ability to support themselves with their own financial resources, including proof of a regular income of at least EUR 27,000 per year (relying solely on bank savings may not suffice).
- Possess permanent accommodation in Luxembourg, which includes third-party liability insurance and property insurance for rented or purchased property.
Types of Investments and Fees
Existing Business
Opt for Route 1 by investing a minimum of €500,000 in an established company based in Luxembourg. As a foreign investor, you must commit to retaining this investment for a minimum of five years.
New Business
Alternatively, consider Route 2, where you invest at least €500,000 in a newly established business in Luxembourg. This business should have its registered office in the country. To meet the criteria, you are required to create five full-time job positions within three years of the business’s incorporation. Recruitment for these positions must be conducted in collaboration with the National Employment Agency.
Management and Investment Structure
Route 3 involves contributing a capital amount of at least €3 million to a management and investment structure, which can be either pre-existing or yet to be established. The investments can be executed directly by the foreign investor or through an intermediary associated with the investment structure. These intermediaries may include other investment funds, family wealth management funds, private equity, or venture capital funds. The structure itself must demonstrate a robust internal governance system with appropriate internal control mechanisms and accounting procedures.
Bank Deposit in a Financial Institution
As an alternative, you can choose Route 4, where you deposit €20 million with a financial institution located in Luxembourg. To satisfy the conditions of this route, you must commit to maintaining the deposit for a minimum of five years.
Fees:
The fees involved in the Luxembourg Residence by Investment program (LRIP) vary depending on the investment option you choose. However, there are some general fees that all applicants must pay, including:
- Application fee: €80
- Non-refundable processing fee: €5,000
- Due diligence fee: €5,000
- Residence permit fee: €50 per year
In addition to these general fees, you will also need to pay the following fees depending on your chosen investment option:
Investment in an existing Luxembourg company
Minimum investment: €500,000
Notary and registration fees: 0.25% to 2% of the investment amount
Investment in a new Luxembourg company
Minimum investment: €500,000
Notary and registration fees: 0.25% to 2% of the investment amount
Bank deposit: €12,500
Investment in Luxembourg government bonds
Minimum investment: €2 million
Notary and registration fees: 0.25% to 2% of the investment amount
Please note that these are just general estimates and the actual fees you pay may vary depending on your individual circumstances. It is important to speak to a qualified immigration consultant to get a more accurate estimate of the fees you will be required to pay.
In addition to the fees listed above, you may also need to pay other costs associated with relocating to Luxembourg, such as legal fees, property purchase costs, and the cost of living.
FAQs
- What Investment Choices Are Available?Investors can opt for a combination of direct and indirect investments. Foreign investors or third-country nationals can invest in one of these four options: an existing company in Luxembourg with a registered office, a new business with a Luxembourg-based registered office (to be created), investment funds, or a bank deposit.Is Luxembourgish Citizenship Attainable?While there isn’t an official citizenship by investment program, it is possible to obtain citizenship by naturalization after five years of residency in Luxembourg, in accordance with immigration law.What Are the Advantages of the Golden Visa Scheme?
The foreign investor gains access to several advantages, including the opportunity to conduct business in a nation known for its stable foreign and European relations. Additionally, it grants legal residency in a country with the United Nations headquarters, access to high-quality living standards, and visa-free travel within the European Union.
What’s the Minimum Investment Required for the Investor’s Residence Permit?
To obtain the investor’s residence permit, third-country nationals need to invest a minimum of €500,000 in either an existing or new business, or at least €20 million in a bank deposit. Alternatively, they can invest a minimum of €3 million in a management or investment structure.
Make Luxembourg your second home
Visa-Free Countries
Population:
655,500 (2023 est.)
GDP (per capita):
$115,700 (2023 est.)
GDP (purchasing power parity):
$74.045 billion (2023 est.)
Capital city: Luxembourg City
Time zone: UTC+1 (BST)
Total area: 2,586 sq km (1,002 sq mi)
Languages: Luxembourgish (official), French (official), German (official)
Currency: Euro (EUR)
Main industry: Financial services
Schengen/EU: Luxembourg is a member of the Schengen Area and the European Union.
KEY ADVANTAGES
- Quality of Life: Luxembourg offers an exceptional quality of life with top-tier healthcare, education, and public services, enhancing overall well-being.
- Economic Prosperity: The nation’s strong economy, driven by finance, technology, and manufacturing sectors, provides ample opportunities for career growth and financial success.
- Strategic Location: Luxembourg’s central European location offers convenient access to major cities like Paris, Brussels, and Frankfurt, making it an ideal base for exploration and travel within the European Union.
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Disclaimer
The materials contained in this page are provided for general information purposes only and are not intended to provide legal or other professional advice. Processing times and costs will vary depending on a number of factors. CitizenMatch is not responsible for any changes to the time and cost estimates; we can provide specific information on an individual basis. All rights reserved.