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Luxembourg Residence Permit by Investment: Path to Citizenship & EU Market Access

April 21, 2025

Luxembourg Residence Permit by Investment: Path to Citizenship & EU Market Access

Countries / Territories

  • LuxembourgLuxembourg
  • BelgiumBelgium

Related contacts

Photo of Virginie Todesco

Virginie Todesco

Immigration Manager

Brussels (Benelux), Belgium

Email

[email protected]

T:+32 (0)2 250 4886

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  • Brussels (Benelux)

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Photo of Virginie Todesco

Virginie Todesco

Immigration Manager

Brussels (Benelux), Belgium

Email

[email protected]

T:+32 (0)2 250 4886

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  • Brussels (Benelux)

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Virginie Todesco

Immigration Manager

Brussels (Benelux), Belgium

Email

[email protected]

T:+32 (0)2 250 4886

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  • Brussels (Benelux)

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By: Virginie Todesco

The Luxembourg investor permit serves as a gateway to the European market for foreign investors, while offering numerous advantages to the business owner that enhance Luxembourg’s appeal as a business hub.

This programme enables high-net-worth individuals to attain Luxembourgish residency in approximately six months, with the potential to secure permanent residency or citizenship after five years.

In an increasingly globalised economy, selecting the ideal location to establish and expand a business is a critical decision. Luxembourg, a small yet economically dynamic and strategically positioned country in the heart of Europe, has emerged as a premier destination for business investors. Renowned for its economic stability, strategic connectivity and investor-friendly tax policies, Luxembourg presents abundant opportunities for foreign entrepreneurs seeking to launch or grow their ventures.

Luxembourg Golden Visa (Investor Permit)

Often referred to as a “Golden Visa,” a term commonly used by various countries for their residency-by-investment programmes, the investor permit provides a pathway to both European residency and long-term business success. This blog delves into the key benefits of the Luxembourg business investor permit as a means of establishing residence in a stable and tax-friendly EU country.

Obtaining this status also creates a route to citizenship after five years of continuous residence. This process involves demonstrating integration into Luxembourg society, including language proficiency and knowledge of Luxembourg's culture and laws. Luxembourg permits dual citizenship, allowing individuals to be citizens of both Luxembourg and another country simultaneously. However, it is important to verify whether the other country also allows dual citizenship, as some nations impose restrictions.

Luxembourg citizens benefit from visa-free travel to numerous countries, access to excellent healthcare and education and favourable tax conditions. As of early 2025, Luxembourg's passport is ranked fourth globally on the Passport Index, with Luxembourgish passport holders being able to travel visa-free to 188 destinations, making it one of the most powerful passports globally.

When applying for the Luxembourg investor permit, an applicant’s dependants can be included in their application. Once they receive a residence permit, dependants will also be granted residency permits, allowing the applicant’s family to live, work and study in Luxembourg alongside them. In addition, family members of a business investor permit holder in Luxembourg can pursue a path to citizenship after meeting certain residency and legal requirements.

What are the benefits of investing in Luxembourg?

      • Residency: Obtain residency in one of Europe’s most prosperous countries and hold a permit giving access to travel visa-free into and within the Schengen area.
      • Path to citizenship: Dual citizenship is permitted and can be applied for after five years of residence, if other qualifying criteria are met.
      • Family reunification: Investors can sponsor immediate family members, who can also eventually apply for European citizenship.
      • Economic stability: Luxembourg is renowned for its political and economic stability. The country has a robust financial sector and a strong legal framework that protects investors’ interests.
      • Strategic location: Luxembourg’s central location in Europe provides easy access to major financial hubs, making it an ideal base for businesses looking to operate across the continent. Luxembourg residence provides visa-free entrance to the Schengen Area and facilitates travel to and around Europe.
      • Favourable tax regime: Luxembourg offers one of the most attractive tax environments in Europe. With low corporate tax rates and various tax incentives, the country is a magnet for businesses seeking to optimise their tax liabilities.
      • Advanced infrastructure: As one of Europe’s leading financial centres, Luxembourg boasts a sophisticated infrastructure, including a well-developed banking sector, investment funds and insurance companies.
      • High quality of life: Luxembourg offers a high standard of living, excellent healthcare, quality education and a multicultural environment, making it an attractive destination for expatriates and their families. Investors can bring their family members. According to Eurostat, foreign-born residents in Luxembourg account for 51% of the population, making it the EU country with the highest share of non-nationals on 1 January 2024.

Types of business investor options

      1. Local company investment: A minimum investment of €500,000 in an existing Luxembourg-based company and commitment to keep their investment and an equivalent level of employment, for a duration of at least five years.
      2. New business investment: A minimum investment of €500,000 to establish a new company with a registered office in Luxembourg with at least five work positions to be created within three years of the incorporation of the business.
      3. Investment funds: A minimum investment of €3 million in an existing or still to be created investment fund, with its registered office in Luxembourg. 
      4. Bank deposit: A deposit of at least €20 million with a Luxembourg bank for a period of at least five years. This option is suitable for high-net-worth individuals seeking a secure investment and able to maintain the amount on deposit for the full five-year duration.

The person benefitting from the deposited or invested assets must be either the investor themselves or their spouse or registered partner.

Application Process

  • Preliminary steps: Obtain an approval from the Minister of the Economy or the Minister of Finance (depending on the type of investment).
  • Before entering Luxembourg:
        • Temporary authorisation: Apply for a temporary authorisation with the Immigration Directorate. This allows investors to enter Luxembourg and begin the process of establishing their business.
        • Long stay D Visa: Note that visa nationals are required to obtain a long stay visa to travel to Luxembourg.
  • After entering Luxembourg: Attend to in-country formalities, including medical checks and residence permit applications.

Seizing the opportunity

In conclusion, relocation to Luxembourg as a business investor offers a unique opportunity for entrepreneurs and investors from around the world to establish and grow their businesses in one of Europe’s most dynamic and stable economies, and in doing so obtain EU residency, visa-free travel to the Schengen area, and eventually citizenship.

For those looking to move to Europe or seeking a secure and prosperous investment destination, the Luxembourg business investor permit offers a valuable gateway to achieving long-term objectives. It opens the door to the many opportunities Luxembourg has to offer and marks the beginning of a successful and rewarding business journey.

To learn more about the process of becoming a permanent resident in Luxembourg via the country’s Private Reasons Immigration Scheme, read Fragomen’s previous blog.

Need to know more?

For questions or further information on Luxembourg’s immigration requirements, please contact Fragomen’s immigration lawyers and advisors at [email protected].

This blog was published on 21 April 2025, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram.

Countries / Territories

  • LuxembourgLuxembourg
  • BelgiumBelgium

Related contacts

Photo of Virginie Todesco

Virginie Todesco

Immigration Manager

Brussels (Benelux), Belgium

Email

[email protected]

T:+32 (0)2 250 4886

Related offices

  • Brussels (Benelux)

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Photo of Virginie Todesco

Virginie Todesco

Immigration Manager

Brussels (Benelux), Belgium

Email

[email protected]

T:+32 (0)2 250 4886

Related offices

  • Brussels (Benelux)

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Photo of Virginie Todesco

Virginie Todesco

Immigration Manager

Brussels (Benelux), Belgium

Email

[email protected]

T:+32 (0)2 250 4886

Related offices

  • Brussels (Benelux)

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

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