A Guide To The Luxembourg Golden Visa Scheme

Formally called the Grand Dutchy of Luxembourg, Luxembourg is a small, landlocked European country. Despite its small size, the country has been a melting pot of cultural and linguistic influences across the neighborhood. Set against a highly developed economy that serves as one of the capitals of the European Union, there is undoubtedly a lot to experience and gain here. Investors are welcome here to reap the benefits.

Hopping on the bandwagon, Luxembourg became another European country to roll out its Golden Visa Scheme. A typical Golden Visa Scheme allows foreign investors to acquire residency and/or citizenship through investment. The said scheme expedites the entire process, and investors are offered residency and/or citizenship in record time. The Luxembourgish Golden Visa scheme is one such example. It is an opportunity for High Net Worth Individuals and/or families to reside in the country and enjoy its giveaways. What do you think about it? Well, read along. 

A Brief Overview of the scheme

In the last decade, many European countries rolled out their respective Golden Visa schemes; the Luxembourgish scheme was launched in 2017. To bring into effect the said scheme, the 2009 Law on the Freedom of Movement of People and Immigration was amended. While it made it relatively easy for foreign investors to reside in the country, it did not provide for quicker acquisition of citizenship. The applicants under the scheme will have to undergo the normal naturalization process for the same. 

What investment options are available

All Golden Visa Schemes round up a few investment options for the applicants to explore. Unlike many other Golden Visa Schemes, real estate investment is not considered here. You have the option to invest a minimum of EUR 500,000 in a local company; the said investment must create five jobs. It is to be noted that the focus of the investment, the company, must be engaged in artisanal, industrial, and commercial activities. Your second option is an investment in the existing management and investment structure. For the said option, you will have to invest a minimum of EUR 3 million. Just like the previous option, you are required to create job positions, here 2 in number. Or, you can deposit in a locally established bank. The minimum deposit to be made is EUR 20 million, and the said deposit must be maintained for a minimum of 5 years. 

When and how to get your permit

Only after your application has been thoroughly vetted should you be granted a residence permit. The Ministry of Finance will examine certain investments made and determine whether or not to grant you the permit. The validity of the permit lasts for three years and can be renewed. You should know that your family members added to the application will be granted a permit as well and be entitled to the benefits you will be. In case of permit issuance and renewal, the point of contact is the Immigration Directorate. 

How to transition to citizenship

As stated earlier, there is no direct route to citizenship under the scheme. You will undergo whatever every other foreigner goes through to become a citizen in Luxembourg: naturalization. To become eligible for citizenship, there are things to do in follow-up to the investment under the scheme. You should maintain a clean criminal record, must have lived in the country for a minimum of 5 years, must have had continuous residence in the year preceding the year of application, must qualify for a language test for German and French, and must attend the “Living Together in the Grand Dutchy of Luxembourg” course. 

Benefits to expect

The benefits are great, especially from the point of view of an investor. Firstly, you get to live in one of the most affluent countries in the world. Its world-class healthcare and education system means you and your family will be able to spend your life with assurance. Luxembourg’s passport is one of the strongest in the world and offers visa-free access to more than 180 countries. You will have freedom of movement across the European Union and Switzerland. 

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