Investor Residence Permit

Luxembourg's Investor Residence Permit (titre de séjour pour investisseur) allows third-country nationals to reside in the Grand Duchy on the basis of a substantial capital investment. Established by the Law of 8 March 2017 under Article 53bis of the amended 2008 immigration law, the program is jointly administered by the Ministry of Home Affairs, the Ministry of the Economy, and the Ministry of Finance. It targets high-net-worth individuals willing to invest through one of four defined pathways: investing in an existing Luxembourg company, creating a new one, contributing to an investment or management structure, or depositing funds with a Luxembourg financial institution. Since its introduction, only nine permits have been issued. A draft law (Bill 8586) proposing the program's abolition was tabled in July 2025 but has not yet been adopted — the program remains fully operational.

• Meet one of four qualifying investment thresholds (see Investment Pathways below)
• The beneficial owner of invested assets must be the applicant, their spouse, or registered partner
• Real estate investments are explicitly excluded
• For pathways involving companies or structures, at least 75% must be equity (maximum 25% borrowed over 3+ years)
• For the deposit pathway, 100% equity is required with funds free of liens or collateral
• Obtain a favorable ministerial investment opinion before applying for the residence permit
• Valid passport and clean criminal record
• Comprehensive health insurance covering Luxembourg
• Proof of suitable housing in Luxembourg
• Application fee of EUR 80

Four qualifying investment options are available:

1. EUR 500,000 in an existing Luxembourg company (commercial, artisanal, or industrial), with commitment to maintain investment and employment levels for 5 years
2. EUR 500,000 in a new Luxembourg company, with obligation to create at least 5 jobs within 3 years
3. EUR 3,000,000 in an existing or new investment/management structure with Luxembourg registered office, minimum 2 full-time non-owner employees, and governance mechanisms
4. EUR 20,000,000 deposited with a Luxembourg financial institution for a minimum of 5 years, with monthly average balance verification

Investors in the EUR 500,000 pathways may subsequently request an establishment authorization to transition to self-employed business operator status.

• Full passport copy
• Criminal record extract or sworn declaration from country of residence
• Proof of fund origin and beneficial owner declaration
• Business plan (for investment structures) or account statements (for deposits)
• Financial statements or bank documentation supporting the investment
• Proof of suitable housing (lease agreement or property deed) — required at residence permit stage
• EUR 80 fee payment proof
• Power of attorney if applying through a representative

The permit is valid for 3 years from the date of the municipal arrival declaration. Renewal is for successive 3-year periods, provided investment conditions continue to be met. Renewal applications must be submitted within 2 months before expiry. After 5 years of continuous lawful residence, holders may apply for EU long-term resident status. Luxembourg citizenship may be acquired by naturalization after 5 years, subject to Luxembourgish language proficiency and completion of a civic integration course.

The investor's spouse, registered partner, and dependent children under 21 may apply for family reunification under the general provisions of the 2008 immigration law. Family members receive independent residence permits allowing them to live, work, and study in Luxembourg. They may pursue permanent residence and citizenship through the same pathway after meeting applicable requirements.

Investor residents are subject to Luxembourg's standard progressive income tax on worldwide income at rates from 8% to 42%, plus a solidarity surcharge. Luxembourg imposes no net wealth tax on individuals. Close family members are exempt from inheritance and gift taxes. The enhanced impatriate regime may be available to qualifying newcomers — offering a 50% tax exemption on gross remuneration up to EUR 400,000 annually for 8 years, for those earning a minimum of EUR 75,000 who have not resided in Luxembourg or within 150 km for the preceding 5 years.

The application follows a three-stage procedure. Stage 1 — submit the investment project to the relevant ministry for a favorable opinion: the Ministry of the Economy handles EUR 500,000 business investments, while the Ministry of Finance handles investment structures and deposits. The minister must respond within 3 months; no response constitutes rejection. The favorable opinion is valid for 1 year. Stage 2 — apply for a temporary stay authorization at the Direction générale de l'immigration or a Luxembourg diplomatic mission abroad. Applications must be submitted from abroad before entering Luxembourg. Visa-required nationals also need a Type D long-stay visa. Stage 3 — after arriving in Luxembourg, file a declaration of arrival at the commune within 3 days, undergo a mandatory medical examination including tuberculosis screening, and submit the residence permit application within 3 months via MyGuichet.lu or by post. Total processing time is approximately 4 to 6 months.

The program has had extremely low uptake — only 9 permits issued in 8 years. Draft law n° 8586, tabled in July 2025, proposes complete abolition of the investor residence permit category, citing limited economic value and disproportionate administrative burdens. The bill is still in early stages of the parliamentary process as of February 2026. Within 12 months after permit issuance, the approving minister conducts a compliance verification. Non-compliant investors receive a maximum 12-month remediation period before the permit may be withdrawn.