Luxembourg

Luxembourg Investor Residence Overview

Luxembourg’s investor residence permit is open to third-country nationals who plan to invest in an existing or new business, a management and investment structure, or make a large-scale financial deposit with a Luxembourg-based institution. 

The permit is initially valid for three years and is renewable provided the qualifying investment conditions continue to be met. After five years of lawful and uninterrupted residence, holders may apply for long-term resident status and become eligible to apply for Luxembourg citizenship by naturalization. 

Family sponsorship extends to the primary applicant’s spouse and children under 21, who apply separately under Luxembourg’s general family reunification provisions once the primary applicant holds a valid residence permit.

Eligibility Requirements

All applicants must obtain ministerial approval of their investment project before submitting a residence permit application, and applications submitted from within Luxembourg are inadmissible. 

Four investment routes are currently available, as follows: 

Investment in an Existing Business

• Minimum investment: €500,000 (approx. US$588,000) in an existing company with its registered office in Luxembourg
• The company must carry out a commercial, craft, or industrial activity
• The applicant must commit to maintaining the investment and preserving employment levels at the time of investment for a minimum of five years
• In the case of acquisition of a company under a redundancy plan, the employment maintenance requirement does not apply
• The effective beneficiary of the invested assets must be the investor or their spouse or registered partner
• Direct and indirect investments in real estate acquisition or rental do not qualify
• Ministerial approval: Ministry of the Economy

Investment in a New Business

• Minimum investment: €500,000 (approx. US$588,000) in a new business to be created, with its registered office in Luxembourg
• At least five jobs must be created within three years of the company’s incorporation
• Staff recruitment must be carried out in collaboration with the National Employment Agency (ADEM)
• The company must carry out a commercial, craft, or industrial activity
• The effective beneficiary of the invested assets must be the investor or their spouse or registered partner
• Direct and indirect investments in real estate acquisition or rental do not qualify
• Ministerial approval: Ministry of the Economy

Investment in a Management and Investment Structure

• Minimum investment: €3 million (approx. US$3.5 million) in a management and investment structure, either existing or to be created, with its registered office in Luxembourg
• The structure must have and maintain the necessary substance in Luxembourg
• The effective beneficiary of the invested assets must be the investor or their spouse or registered partner
• Ministerial approval: Ministry of Finance

Deposit with a Financial Institution

• Minimum investment: €20 million (approx. US$23.5 million) deposited with a financial institution established in Luxembourg
• The applicant must commit to maintaining the deposit for a minimum of five years
• The effective beneficiary of the deposited assets must be the investor or their spouse or registered partner
• Ministerial approval: Ministry of Finance

Route to Citizenship

Investor residence permit holders become eligible to apply for Luxembourg citizenship by naturalization after five years of legal residence in Luxembourg.

The five-year residency period does not need to be consecutive in its entirety, but the last twelve months must be continuous. 

Luxembourg has allowed dual citizenship since 2009, meaning applicants are not required to renounce their existing nationality upon naturalization.

To qualify for citizenship, applicants must demonstrate knowledge of the Luxembourgish language by passing an oral exam at A2 speaking level and B1 listening comprehension level, administered by the National Institute of Languages. The registration fee for the exam is €75. 

Applicants must also complete the “Vivre ensemble au Grand-Duché de Luxembourg” civics course or pass the equivalent test, which covers citizens’ fundamental rights, state and municipal institutions, and the history of Luxembourg and European integration. 

A clean criminal record is required throughout. Authorities reject naturalization applications if the applicant has received a custodial sentence of 12 months or more or a suspended sentence of 24 months or more in any country. 

Naturalization applications are decided by the Ministry of Justice within eight months of submission.

Mobility and Tax Advantages

Mobility

Luxembourg residence permit holders benefit from the right to live, work, and study in Luxembourg and to travel freely across the Schengen Area, with stays of up to 90 days in any 180-day period in all Schengen member states without a separate visa.

Upon naturalization, Luxembourg citizens hold one of the most powerful passports in the world, with visa-free or visa-on-arrival access to approximately 185 countries and territories. 

This includes full free movement rights across all 27 EU member states and EEA countries, the right to live and work anywhere in the EU, and consular protection from any EU member state embassy in countries where Luxembourg has no diplomatic mission. 

Notable destinations accessible without a prior visa include the United States, the United Kingdom, Japan, South Korea, Canada, Australia, and the United Arab Emirates.

Tax

Luxembourg applies a progressive personal income tax scale ranging from 0% to 42% on worldwide income for tax residents. The top rate of 42% applies to annual income exceeding €234,870. 

An employment fund solidarity contribution of 7% to 9% is applied on top of the income tax due. Luxembourg taxes residents on worldwide income, while non-residents are taxed only on Luxembourg-source income. 

The corporate income tax rate is 16% as of 2025, with an aggregate rate of approximately 23.87% for companies established in Luxembourg City when including municipal business tax and the solidarity surcharge. 

Investors who do not establish tax residency in Luxembourg remain subject to the tax rules of their country of residence. 

How to Apply

The Luxembourg Investor Residence Permit is administered by the General Department of Immigration of the Ministry of Home Affairs, with investment project approval handled by the Ministry of the Economy for business investments of €500,000 (approx. US$588,000), and by the Ministry of Finance for the management structure and financial deposit routes. The legal basis is Luxembourg’s Law on the Free Movement of Persons and Immigration. 

All applications must be submitted from the applicant’s country of origin; applications submitted from within Luxembourg are inadmissible.

The typical process runs as follows.

• Step 1. The applicant presents their investment project or proof of investment to the competent minister — the Ministry of the Economy for business investments, the Ministry of Finance for management structure or deposit investments — and obtains written ministerial approval before taking any further steps.
• Step 2. The applicant submits an application for a temporary authorisation to stay on plain paper to the General Department of Immigration of the Ministry of Home Affairs, or to a Luxembourg diplomatic or consular mission, from their country of origin, accompanied by a full copy of their valid passport, a criminal record extract or sworn affidavit from their country of residence, and the ministerial approval letter; the Ministry of Home Affairs responds within three months, and no response within that period is deemed a rejection.
• Step 3. Applicants subject to visa requirements submit a Type D visa application to the Luxembourg diplomatic or consular representation in their country of origin, or to the Belgian embassy or consulate where no Luxembourg mission is present, presenting the temporary authorisation to stay; the visa is valid for a maximum of three months.
• Step 4. Upon arrival in Luxembourg, the applicant declares their arrival to the administration of the commune of residence within three days, presenting their valid travel documents and the original temporary authorisation to stay.
• Step 5. The applicant undergoes a medical examination by a licensed general practitioner or specialist in Luxembourg, including tuberculosis screening, as soon as possible after arrival; the Health Inspection of the Health Directorate issues a medical certificate upon receipt of results.
• Step 6. The applicant submits a residence permit application to the Ministry of Home Affairs within three months of arrival, either online via MyGuichet.lu or by post, accompanied by a full copy of their valid passport, the declaration of arrival from the commune, and proof of suitable housing.
• Step 7. Once the application is approved, the applicant attends an appointment at the General Department of Immigration to provide biometric data; the residence permit card is issued a few days after biometric collection and must be collected in person by appointment.