Business investments

Liberal legislation and easy registration of firms attract entrepreneurs from all over the world to the Duchy. The Luxembourg government adjusted the program of legalizing non-residents for direct investment several years ago. According to the current rules, a residence permit is issued if an entrepreneur invests at least 500 thousand euros in the business. Under this program, three-year permits are granted. A mandatory condition is to hire at least five local citizens in the first three years of work, selecting them in cooperation with ADEM, the Industrial Development Agency.

You can invest in an existing company or create your own. In the first case, it is necessary to keep the investment for five years and invest only in organizations with a local Registered office. Luxembourg authorities welcome the support of businesses related to information technology, transport and logistics, healthcare, environmental energy and finance.

When investing in your own company, you can choose an organizational form. In Luxembourg, joint-stock companies with at least two founders and analogs of LLC that are allowed to be managed alone are popular. The minimum capital in the first case is 31.5 thousand euros, in the second — 2.5 thousand. The founder of the company must use the services of local lawyers and notaries and apply for admission to the Luxembourg Federation of industrialists and the Chamber of Commerce. On average, up to 8 thousand euros are needed to maintain a business annually.

Direct investment

The minimum investment size depends on the investment method. There are three of them:

● investment fund-the "entry threshold" is 3 million euro, the organization must have an office registered in the Duchy;

● deposit in one of the banks of Luxembourg – from 20 million euro, with a retention period of at least five years;

● investment in management structures starting from 3 million euro, agreed with the authorities and sent to the area that needs financial support.

Investment residence permits are valid for three years. A foreigner who retains temporary residence for five years has the right to apply for permanent residence. To maintain the status, you need to stay in the Duchy for at least six months. 

Temporary residence permit in Luxembourg

If you wish to stay in Luxembourg for more than one year, you must apply for a temporary residence permit, which is issued for up to five years. A temporary residence permit can be extended if you meet the requirements. Here are the steps you need to follow to apply for a temporary residence permit in Luxembourg.

1. Contact the Immigration Office of the Ministry of foreign and European affairs within three months of entering Luxembourg to obtain a temporary residence permit. 

2. Visit a Medical Center in Luxembourg and get a medical report.

3. Collect and submit all the necessary documents in person to the Immigration Department.

4. After completing all these steps, you will receive a response from the Immigration Department within one to four weeks regarding your application for a temporary residence permit.

Permanent residence permit in Luxembourg

After five years of legal stay in Luxembourg, you can apply for a permanent residence permit. To apply for a permanent residence permit in Luxembourg, you must follow these steps:

● Contact the Immigration Office of the Ministry of foreign and European affairs and make an appointment. 

● Collect all the necessary documents and submit them to the immigration office in person. 

● After applying to the immigration office, you will be issued a receipt that acts as a temporary residence permit in Luxembourg until the end of the review time for your permanent residence permit. 

The term for obtaining a permanent residence permit is six months. If you don’t receive a response to your application from the Immigration Department within six months, please know that your application has been rejected.  

Important: a temporary permit can’t be used as a travel document, meaning it doesn’t allow you to travel to different locations; it is only valid in Luxembourg. 

List of documents for obtaining a permanent residence permit in Luxembourg

You must collect and submit the following documents to the immigration office when applying for a permanent residence permit in Luxembourg: 

● Valid passport.

● Bank statement.

● Application form. 

● Payment for a visa.

● Proof of residence.

● Confirmation of health insurance availability. 

● Certificate of non-criminal record.

● Confirmation of the completed exam.

● Any club member card (if any). 

● Recent certificate of ownership (certificate of registration with Social Security). It must be issued by the Joint Social Protection Center in the last five years. 

Who can apply for citizenship

According to the law on granting citizenship of 1 January, 1987 year, the status of a Citizen can be acquired on the principle of blood kinship. This does not give the right to a child born to foreigners in the territory of the Duchy to automatically become its citizen.

Luxembourg citizenship can be obtained in:

● Children who were born in a legal marriage. And regardless of which country it happened in, they automatically become citizens of Luxembourg;

● If the mother is a foreigner and the father is a Luxembourger, the child receives citizenship only after legal adoption;

● In case of registration of guardianship, one of the Guardians must be a citizen of the country;

● Those who have been granted refugee status under the decision of the Geneva Convention;

● People who have lived in the Duchy of Luxembourg for at least 10 years.

Documents required for obtaining Luxembourg citizenship

To obtain a passport and the status of a Luxembourg citizen, you must submit an application to the Ministry of Justice. Along with the request, you will need:

● copy of the birth certificate;

● short biography;

● copy of your passport;

● language test result;

● cards which are confirmed a residence permit for the last 7 years.

In addition to all the above, the Ministry of justice may need other documents. After submitting all the necessary papers, the decision on granting citizenship will be made no earlier than 2 months from the date of submission.

Loss of citizenship

You can lose your country's citizenship for the following reasons:

● Voluntary refusal.

● The desire to become a citizen of another state by renouncing dual citizenship.

● For committing a serious state crime.