Luxembourg Residence by Investment Program

Aerial view of the old town of Luxembourg city where you could reside with the Luxembourg Residence by Investment Program

Luxembourg, a beacon of multiculturalism and innovation in the heart of Europe, stands out as a top choice for expatriates seeking a blend of modern amenities and timeless charm. Renowned for its forward-thinking policies, robust economy, and family-friendly environment, Luxembourg offers unparalleled quality of life. For high-net-worth individuals, the Luxembourg Residence by Investment Programme presents an exclusive opportunity to gain residency in this secure and prosperous EU member state by making approved investments. Designed to attract visionary investors and entrepreneurs, the programme not only grants access to exceptional public services but also offers a clear pathway to permanent residency or citizenship, enabling participants to contribute to Luxembourg’s thriving economy and society.

Benefits of Luxembourg Residence by Investment

  • Access to Europe’s Wealthiest Nation
    Luxembourg boasts one of the highest standards of living in the EU, offering exceptional public services and social benefits.
  • Visa-Free Schengen Travel
    Residency in Luxembourg enables free movement across the Schengen Zone, ideal for both business and personal travel.
  • Family Inclusion
    Spouses and dependants can be included under the same residency permit.
  • High-Quality Healthcare and Education
    Residents benefit from advanced medical facilities and a variety of international schooling options.
  • Pathway to Permanent Residency and Citizenship
    After five years, you may seek permanent residency or citizenship, further securing your status and integration.
  • Strong Business Environment
    Luxembourg’s proximity to major financial and political centres in Europe makes it an excellent base for investors and entrepreneurs.

Sunset shot with pink skies of Luxembourg city where you could live with the Luxembourg Residence by Investment Program

Requirements of the Program

To qualify for the Luxembourg Residence by Investment Programme, applicants must fulfil specific obligations:

  1. Investment Obligations
    • Invest at least USD 515,000 (EUR 500,000) in a newly established business headquartered in Luxembourg with a commitment to create at least five jobs within three years; or
    • Invest at least USD 515,000 (EUR 500,000) in an existing Luxembourg-based enterprise; or
    • Invest in government-approved projects (e.g. sustainable development or innovation) that provide tangible economic or social value.
  2. Proof of Financial Stability
    • Demonstrate sufficient funds to support yourself and any dependants.
    • Provide evidence of investment funds (e.g. bank statements or legal agreements).
  3. Residency Intent
    • Prove residence in Luxembourg (through a lease agreement, property ownership, or similar documentation).
  4. Clean Criminal Record
    • Submit a police clearance certificate from your current country of residence and other places you have lived.
  5. Health Insurance
    • Maintain comprehensive health insurance covering Luxembourg and the EU.
  6. Additional Documentation
    • Proof of identity, marital status, and dependant relationships.
    • Clear investment plan, highlighting objectives and expected benefits for Luxembourg.
    • Payment of all processing and administrative fees.

Luxembourg city showing the old bridge and plenty of green trees

Application Process

  1. Research Investment Options
    • Identify the type of qualifying investment that aligns with your goals (new business, existing enterprise, or a government-supported project).
    • Confirm the investment fits Luxembourg’s economic priorities.
  2. Engage Legal and Financial Advisors
    • Consult immigration specialists knowledgeable about Luxembourg’s residency requirements.
    • Work with financial advisors to ensure your investment is structured correctly.
  3. Prepare Documentation
    • Collect personal identification documents (passports, proof of address).
    • Compile financial records, including proof of funds and investment details.
    • Obtain police clearance certificates and evidence of health insurance.
  4. Submit the Application
    • Send your complete application and evidence of investment to the relevant Luxembourg authorities.
    • Timely and accurate submission is essential to avoid delays.
  5. Undergo Background Checks
    • The government verifies the legality of your funds and ensures compliance with programme regulations.
    • Respond promptly to any requests for more information.
  6. Attend Interviews or Assessments
    • You may need to discuss your investment and residency plans in person.
  7. Receive Temporary Residency Approval
    • Once requirements are met, you receive a temporary residence permit, allowing you to live and work in Luxembourg.
  8. Fulfil Residency Obligations
    • Keep your investment in place and spend the required amount of time in Luxembourg to maintain your residency status.

Acquiring Citizenship After the Luxembourg Residence by Investment Program

After five consecutive years of legal residency, participants may seek Luxembourgish citizenship. To qualify, applicants must meet several conditions.

They must maintain consistent residence in Luxembourg for the full five years, ensuring they do not have prolonged absences during this time. Demonstrating a basic command of Luxembourgish is essential, which involves passing a language test, with language courses available to support this requirement. Additionally, applicants need to complete a civic integration course that provides knowledge of Luxembourg’s history, political framework, and social values, followed by successfully passing the relevant assessment. The qualifying investment made through the programme must also be maintained for the duration specified. Finally, applicants must uphold the clean criminal record requirement, submitting updated clearance certificates as part of the process.

Upon becoming a Luxembourgish citizen, you gain unrestricted rights to live, work, and travel across all EU member states, while also retaining your original nationality if your country of origin permits dual citizenship.

Luxembourg Residence by Investment program allows you to move to an idyllic area such as this with colourful houses and plenty of green space

Comparing Luxembourg to Other Residence by Investment Schemes

Greece’s Residence by Investment Program

  • Minimum Investment: USD 412,000 (EUR 400,000).
  • Highlights: Quick visa-free Schengen access, family inclusion, and a comparatively low cost of entry.
  • Limitations: Primarily real estate-focused, without a straightforward five-year citizenship path.
  • Luxembourg Advantage: More diverse investment routes and a faster route to citizenship.

Malta’s Residence by Investment Program

  • Minimum Investment: USD 130,000 (EUR 126,000) in government bonds, plus additional state contributions. Additionally, applicants must demonstrate capital assets of not less than USD 515,000 (EUR 500,000), out of which a minimum of EUR 150,000 must be financial assets.
  • Highlights: Affordable entry, Schengen travel, and the option to include family members.
  • Limitations: Focus on financial contributions rather than varied business investments.
  • Luxembourg Advantage: Broader investment choices, plus a five-year citizenship timeline within a strong, stable economy.

Latvia’s Residence by Investment Program

  • Minimum Investment: USD 52,000 (EUR 50,000) investment in share capital of a Latvian company plus a one time payment of USD 10,300 (EUR 10,000) to the state budget.
  • Highlights: Low initial threshold, visa-free Schengen travel, family coverage.
  • Limitations: Less economic strength, with citizenship requiring around ten years of residency.
  • Luxembourg Advantage: More profitable business environment and a quicker five-year citizenship path.

Italy’s Residence by Investment Program

  • Minimum Investment: USD 258,000 (EUR 250,000) in innovative startups, or USD 2.06 million (EUR 2 million) in government bonds or USD 1.03 million (EUR 1 million) in philanthropic initiatives.
  • Highlights: Encourages innovation and development, appealing to investors focused on emerging ventures.
  • Limitations: A minimum of ten years’ residency for citizenship, plus potential bureaucratic hurdles.
  • Luxembourg Advantage: Lower investment thresholds, streamlined procedures, and the option of citizenship in five years.

France’s Residence by Investment Program

France does not have a traditional “Golden Visa” program based solely on real estate or financial investments without active involvement. Instead, the focus is on substantial economic contributions that promote business development and employment within the country.

  • Minimum Investment: USD 310,000 (EUR 300,000) direct investment, own at least 10% of the company in which the investment is made and commit to creating or safeguarding jobs within the 4 years of the investment.
  • Highlights: Schengen access, high-calibre public services.
  • Limitations: Higher investment requirement and more complex bureaucracy.
  • Luxembourg Advantage: More affordable entry point, an easier application process, and similar five-year citizenship eligibility.

Why Luxembourg Stands Out

Luxembourg provides a remarkable standard of living, ample job prospects, and a highly developed healthcare system, making it a top destination for expatriates. Its multicultural population and welcoming social environment create a unique sense of inclusion.

Through the Luxembourg Residence by Investment Program, investors can put down roots in this dynamic society, benefiting from economic resilience, family-oriented policies, and the perks of EU membership. For those seeking to widen their global presence, Luxembourg serves not just as a place to live, but as a launchpad for expansion, success, and lasting opportunities in one of the most promising regions in the world.

 

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Author:
Rihab Saad

Managing Director
Next Generation Equity

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