16 Feb Luxembourg Residence by Investment Program [2023 Guide]
Luxembourg offers high-net-worth individuals a winning combination of investor-friendly legislation, zero wealth tax and a cosmopolitan international mix of residents. With one of the highest GDPs in the world, the country offers an excellent quality of life. It is also a truly unique part of Europe, being the only surviving sovereign grand duchy in the world, with a constitutional monarchy and a representative democracy.
This article shows you how to apply for Luxembourg residency by investment, with details of the application process, the various options and the costs involved. It covers these essential areas:
- Luxembourg residency by investment – What is it?
- Benefits of becoming a resident in Luxembourg.
- Luxembourg residency by investment options
- Luxembourg residency by investment eligibility requirements
- How to apply for Luxembourg residency – Step-by-step
- Luxembourg residency by investment – Documents required
- What is the minimum investment required for Luxembourg citizenship?
- Can you buy residency in Luxembourg?
- Can I bring my family with me to Luxembourg if I obtain residency through investment?
- Are there any restrictions or limitations on the activities individuals with Luxembourg residency by investment can engage in while in the country?
- What is the cost involved in obtaining Luxembourg residency through investment, and what is included in the fees?
Luxembourg residency by investment – What is it?
The Luxembourg residence by investment program, sometimes known as the Luxembourg Golden Visa scheme, allows foreign nationals to obtain a Luxembourg residence permit for a minimum contribution of EUR 500,000. After five years, holders of a permanent residency permit can apply for permanent residence, and after five years of continuous residence in the country, they may be eligible to apply for citizenship.
Benefits of becoming a resident in Luxembourg
Luxembourg is one of the wealthiest countries in the world and was one of the founding members of the EU. As a resident of this prosperous country, you will enjoy benefits including:
- Visa-free access to the EU and the wider Schengen Area.
- A low investment threshold, with no obligation to purchase property in the country.
- No wealth tax and favourable inheritance and capital gains taxation regime.
- Investor-friendly legislation, with practical corporate law for rapid company formation.
- Thriving financial industry, with many investment funds, banks, and insurance and reinsurance companies.
- High quality of life, stable political and economic environment, and low crime rates.
- A cosmopolitan expat community, which accounts for 50% of the Luxembourg population.
- High-standard healthcare, with all citizens granted basic state-funded medical cover.
- An almost fully state-funded education system.
- Free public transport by bus, train and tram.
Luxembourg residency by investment options
Applicants from non-EU countries have four options when considering the Luxembourg residency by investment program:
- A minimum investment of EUR 500,000 into an existing Luxembourg company involved in commercial, industrial or craft activities. You must commit to keeping the investment for at least five years.
- A minimum EUR 500,000 investment in a new Luxembourg company involved in commercial, industrial or craft activities, with a commitment to creating at least five jobs during the next three years. The staff must be recruited in collaboration with the “Agence pour le développement de l’emploi” (ADEM).
- A minimum EUR 3 million investment in an existing or yet-to-be-created management and investment structure registered in Luxembourg.
- A minimum investment of EUR 20 million in a Luxembourg financial institution, maintained for at least five years.
Luxembourg residency by investment eligibility requirements
Applicants must be over the age of 18. The residency by investment program requires the completion of prescribed forms (downloadable), supporting documents and the payment of all relevant investment and administration fees. Applicants must agree to reside in Luxembourg for at least six months during the three-year residency visa period.
There is no requirement to purchase real estate to apply for a Luxembourg residence by investment permit. However, you will need local accommodation during your residency. You will also require valid health insurance.
How to apply for Luxembourg residency – Step-by-step
The first thing to do is speak to an agent such as Huriya Private for advice on the application process. The various stages are as follows:
- Apply for a temporary stay visa with the Immigration Directorate.
- Begin gathering the documents required.
- Travel to Luxembourg within 90 days of receiving the go-ahead to apply.
- Undergo a medical check and due diligence checks.
- Submit the application and supporting documents for your residence permit to the Ministry of Economy for the EUR 500k investments, and the Ministry of Finance for the higher investment options.
- Register with the relevant Luxembourg commune of residence within three days of your arrival in the country.
- Await final approval from the Ministry of Foreign Affairs – it takes approximately six months from application submission to approval.
The residence permit is valid for three years initially. To renew it, you will need to demonstrate that you spent at least six months in Luxembourg during the three years.
Luxembourg residency by investment – Documents required
During the application process, you will need these documents:
- Copies of your passport and those of any other people on the application form.
- Two passport-sized photographs.
- Proof of your Luxembourg accommodation.
- Evidence of your medical health record from a doctor established in Luxembourg.
- Proof of a clean criminal record.
- Proof of your financial resources, including the means of making the required investment.
What is the minimum investment required for Luxembourg citizenship?
You can acquire residency by investment in Luxembourg for as little as EUR 500,000. This involves investing in a new or existing company based in the country.
Can you buy residency in Luxembourg?
Residency by investment is possible for as little as EUR 500k. The residency is initially for three years, and after five years, you can apply for permanent residency. Luxembourgish citizenship can be applied for after five years of continuous residence in the country. To receive citizenship, you must take an integration course and demonstrate knowledge of the Luxembourgish language through an oral test.
Can I bring my family with me to Luxembourg if I obtain residency through investment?
You can include your spouse and any of your unmarried children under the age of 18. After the first 12 months of your residence, dependent older children and parents can apply for residency with you.
Are there any restrictions or limitations on the activities individuals with Luxembourg residency by investment can engage in while in the country?
There are no restrictions on your employment or business activities during your residency in Luxembourg. However, you must always act within the law and must not engage in any illegal activity.
What is the cost involved in obtaining Luxembourg residency through investment, and what is included in the fees?
In addition to the investment sum – which ranges from EUR 500,000 to EUR 20 million – you will need to pay for visits to the country to undergo a medical check and due diligence checks. You will also need to arrange accommodation. The actual application fee is just EUR 80, but there will be agency fees.
Contact Huriya Private now to learn more about citizenship programs and how you can start your journey towards securing a valuable second passport.