Luxembourg is recognized as one of the most appealing business destinations globally. For individuals looking to reside in this EU nation, which boasts a thriving economy, the Luxembourg Residence by Investment Program offers a highly efficient pathway to residency. Through this program, affluent individuals can make a substantial contribution to the country’s economy and gain Luxembourgish residency within approximately six months. Furthermore, after five years of legal residence, participants may become eligible for citizenship, allowing them to fully integrate into this dynamic and multicultural society.

Key Advantages of Luxembourg Residence by Investment

• Visa-free Access: Enjoy visa-free travel throughout the EU and Europe’s Schengen Area, allowing for seamless mobility across many countries.
• High Quality of Life: Experience a superior standard of living in a stable political environment, complemented by robust investor-friendly legislation.
• Low Investment Threshold: Benefit from a relatively low minimum investment requirement, with no obligation to purchase real estate, making it accessible for various investors.
• Flexible Corporate Law: Take advantage of a flexible and practical corporate law framework that facilitates rapid company formation and business operations.
• Tax Advantages: Enjoy the absence of a wealth tax, along with a favourable taxation regime for inheritance and capital gains, making Luxembourg an attractive destination for wealth management and preservation.

Key Requirements of the Luxembourg Residence by Investment Program

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

1. Residence by Investment

Investors from non-EU countries have four investment options:

• Investment in an Existing Company: Invest a minimum of EUR 500,000 into an existing Luxembourg company (engaged in commercial, industrial, or craft activities) and commit to maintaining the existing employment levels for five years.
• Investment in a New Company: Invest a minimum of EUR 500,000 into a new Luxembourg company (in the same sectors) and commit to creating at least five new jobs within the following three years.
• Investment in Management Structure: Invest a minimum of EUR 3 million into an existing or new investment or management structure with a registered office in Luxembourg, which must demonstrate appropriate substance.
• Deposit in Financial Institution: Make a deposit of EUR 20 million into a financial institution established in Luxembourg, which must be maintained for a minimum of five years.

2. Residence by Private Reasons (for individuals who cannot be employed in the country)

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

• Financial Self-Sufficiency: Applicants must prove they can support themselves financially, requiring a regular income flow of at least EUR 27,000 per year. Bank savings alone may not be considered sufficient for this purpose.
• Permanent Accommodation: Applicants must have permanent accommodation in Luxembourg, which includes having third-party liability insurance and property insurance for either rented or purchased property.

Process for the Luxembourg Residence by Investment Program

Applications for the Luxembourg Residence by Investment Program must be submitted using the prescribed forms and must include the relevant fees and supporting documents. To obtain a residence permit, applicants need to demonstrate their intention to reside permanently in Luxembourg.

1. Initial Application Steps:
2. • Once initial due diligence checks are completed, applicants can submit their applications.

1. For Residence by Investment Option:
2. • An investment application is submitted to the Ministry of Finance or the Ministry of Economy.
   • If the investment application is approved, the Ministry of Foreign Affairs reviews the application for final approval.
   • Upon approval, applicants must request a visa category D from their current country of residence.

1. For Residence by Private Reasons Option:
2. • An application is submitted directly to the Ministry of Foreign Affairs.
   • If approved, applicants must also request a visa category D from their current country of residence, which can be collected at the local consulate or embassy.

1. Arrival in Luxembourg:
2. • Under both options, clients are required to:
     • Travel to Luxembourg within 90 days of receiving authorization.
     • Undergo a medical check.
     • Submit their application for the residence permit.
     • Register with their commune of residence within three days of arrival.

1. Residence Permit Validity:
2. • The residence permits are valid for an initial period of three years under the residence by investment option, or one year under the residence by private reasons option, with a possibility for renewal.
   • To renew their residence permit, investors must demonstrate having spent a significant length of time in the country, specifically at least six months.

Citizenship Following Residence by Investment

Successful applicants can apply for Luxembourgish citizenship after five years of continuous residence, which grants them a passport to this EU nation. It’s important to note that the final year of residence immediately preceding the citizenship application must be uninterrupted.

To obtain citizenship, investors are required to:

• Demonstrate Knowledge of Language: Prove proficiency in the Luxembourgish language through an oral test.
• Complete an Integration Course: Participate in an integration course designed to familiarize applicants with Luxembourg’s culture, society, and values.

These requirements ensure that new citizens are well-prepared to engage with and contribute to their new community in Luxembourg.