Luxembourg has opened a new golden visa scheme offering full residency rights to foreigners and third country nationals to encourage significant investment in the country.
Luxembourg, with a population of close to 600,000 ranks as the world’s second-richest country, according to Forbes. Luxembourg is a landlocked country in the Schengen area, surrounded by Germany, France and Belgium with a population of over half a million. Luxembourg is the smallest country in Europe and also one of the three official capital capitals of European Union and seat of the European Court of Justice.
Luxembourg is a founding member of the European Union, OECD, United Nations, NATO, and Benelux. The city of Luxembourg, which is the country’s capital and largest city, is the seat of several institutions and agencies of the EU.
The First Schengen agreement was signed in Luxembourg. ‘Schengen’ is a small wine making town in Luxembourg, where the Schengen Agreement was first signed in July 1985 signed by five countries: Belgium, Germany, France, Luxembourg and the Netherlands.
Golden Visa
According to Government, third-country nationals can apply for a residence permit as an investor provided they plan to invest with the following four options:
- Existing Company: At least EUR 500,000 in an existing company with its registered office in Luxembourg an commit to keep for a duration of at least 5 years
- New Businesses: At least EUR 500,000 in a new business, with its registered office in Luxembourg and at least 5 work positions which must be created within 3 years of the incorporation of the business. The recruitment of staff must be in collaboration with the Agence pour le développement de l’emploi – ADEM
- Investment funds: At least EUR 3 million in a management and investment structure, either existing or still to be created, with its registered office in Luxembourg where it must have and maintain the necessary finances.
- Bank Deposit: At least EUR 20 million in the form of a deposit of funds with a financial institution established in Luxembourg, and with the commitment to keep said deposit for at least 5 years.
The Acquisition of real estate does not qualify to obtain a residence permit for investors, under this scheme.
The residence permit for “investors” is valid for a maximum of 3 years and is renewable provided the conditions for renewal are still met.
The Minister of the Economy is competent in matters of investment projects of:
- at least EUR 500,000 in an existing business;
- at least EUR 500,000 in a new business still to be created.
The Minister of Finance is responsible for the analysis of proof of investments of:
- at least EUR 3 million in a management and investment structure, whether already existing or still to be created;
- at least EUR 20 million in the form of a deposit with a financial institution established in Luxembourg.
Permanent Residency
After five years of uninterrupted living it is possible to launch application for permanent residency in Luxembourg.
The length of the stay is not deemed to be interrupted by:
- Temporary absences of less than 6 consecutive months and which do not exceed a total of more than 10 months in 5 years;
- Uninterrupted absences of a maximum of 12 consecutive months for important reasons, such as: pregnancy and childbirth; a serious illness; studies or professional training.
Luxembourg Citizenship
Luxembourg citizenship is possible after 5 years of living and knowledge of luxembourgish language. Luxembourg nationality will be revoked on false statements , concealed material facts or acted by fraud in the context of the naturalization procedure.
Luxembourg Passport
Luxembourg passport is the fourth powerful passport in the world with visa free access to 186 countries in the world. including Canada, US and freedom of movement in UK, Europe, Ireland.
