Luxembourg to End Golden Visa Program for Foreign Investors

Luxembourg is making headlines with its latest decision to shut down its golden visa program. This change could affect many high-net-worth individuals considering Europe as a place to live, work, or invest. If you’ve been thinking about Luxembourg for residency by investment, here’s what you need to know.

Luxembourg’s golden visa program, launched in 2017, allowed wealthy individuals from outside the EU to apply for a residence permit. The main condition was an investment of at least €500,000 in a Luxembourg-based company.

This visa was seen as a fast-track way to get a foothold in Europe, especially in one of the wealthiest and most stable countries in the EU.

Luxembourg is planning to pass a law that would officially scrap the golden visa program. The main reasons are:

• Very Low Interest: Since 2017, only nine people have been granted this visa. That’s extremely low compared to similar programs in other countries.
• High Costs and Paperwork: Managing the program requires meeting EU regulations, including anti-money laundering checks. This makes it expensive and time-consuming for the government.
• Limited Impact: Officials believe the program didn’t bring the economic benefits they had hoped for.

The proposed law is still in the early stages. It has been submitted to Parliament but has not yet been discussed. However, it’s likely to move forward soon.

• New applications under this program will no longer be accepted.
• People already in the system might be affected, depending on whether there are any “transition rules.”
• Other options, such as self-employment permits, will remain available for investors who want to build or manage a business in Luxembourg directly.

Yes. While the golden visa is ending, non-EU nationals can still apply for:

Self-Employed Residence Permits

This option allows individuals to live in Luxembourg if they plan to:

• Create a company
• Run a business themselves
• Invest in and manage their own business structure

However, this path usually requires more personal involvement in the business and may include more steps than the golden visa program.

Yes, but it takes time. Here’s how it works:

1. After five years of legal residence, you can apply for Luxembourgish citizenship.
2. You must meet integration requirements such as:
   • Learning the Luxembourgish language
   • Attending a civic integration course
   • Demonstrating ties to the country

Previously, the golden visa route could lead to this outcome. But with it ending, investors will need to take other residence paths, like the self-employed permit.

Golden visa programs across Europe have come under more scrutiny lately. Here’s why:

1. EU Oversight: The European Union is watching these programs closely. There are concerns about:
   • Money laundering
   • Tax evasion
   • National security risks
2. Public Concerns: Some local populations worry these programs make housing less affordable and offer too much access to the wealthy.
3. Political Shift: Governments are becoming more careful about who they allow to invest for residency.

Luxembourg’s decision is part of a wider trend, and it’s likely that other countries will follow.