Luxembourg Citizenship by Investment for Indian Nationals 

Luxembourg citizenship by investment is an excellent pathway for foreigners to obtain citizenship. This investment program requires you to invest at least EUR 500000 in a company based in Luxembourg. After the investment is made, and you have met all the requirements for the program, you become eligible for permanent residence. Thus, you can stay in Luxembourg for 5 years and obtain citizenship. The Luxembourg citizenship by investment is also called the Golden visa program and is open to anyone meeting the requirements. This blog covers everything you need about Luxembourg’s Citizenship by Investment program.

Luxembourg Golden Visa Program: An Overview 

Luxembourg Citizenship by Investment is also known as the Golden Visa program. The program allows you to obtain permanent residency in Luxembourg directly via investment. The investment must be made in a business based in Luxembourg. The minimum amount for the same is EUR 500000. You can send an application for the Golden Visa program. If approved, you can obtain a D visa or a Luxembourg national visa. This long-term visa is granted for 1 year.

After getting the D visa, you can register for permanent residence. The Luxembourg citizenship by investment program makes you eligible for this permanent residence. Then, stay in Luxembourg for 5 years, and later on apply for citizenship.

Luxembourg is a preferred destination for investment among businesses and investors due to its quality of life, high GDP, and infrastructure. The main benefit of obtaining Luxembourg citizenship by investment would be visa-free access to Europe’s Schengen area, and European Union.

Benefits of Obtaining Luxembourg Citizenship by Investment 

There are several benefits of obtaining citizenship by investment. Some of these reasons are provided below:

• You can enter the Schengen area and the European Union without a visa 
• You can access high quality of life, and live in a politically stable country with investor-friendly legislation
• The investment threshold in Luxembourg is low. You are also not oblied to buy real estate 
• No wealth taxes are charged. Moreover, the country has business-friendly capital gains, inheritance, and taxation regimes.

Learn about the Luxembourg student visa in detail

Requirements for Obtaining Luxembourg Citizenship by Investment 

A non-EU national can choose between the following options for investment 

• Invest at least  EUR 500,000 in a company based in Luxembourg. The focus must be on the commercial, craft activity, or industrial area. You must also commit to maintaining a job for 5 years.
• Invest at least  EUR 500,000 in a company based in Luxembourg, and employ at least 5 people in 3 years.
• Invest at least EUR 3 million into a new management company or an investment structure. The company must be based in Luxembourg.
• Invest EUR 20 million in a financial institution based in Luxembourg. The investment must be maintained for 5 years.

You can also obtain Residence for private reasons. That is if the successful candidate is not able to be employed in Luxembourg.  The option is for people from the developing countries.

• Your bank savings are not considered sufficient. Therefore, you need to prove that you have a regular source of income of at least EUR 27,000 per year.
• Otherwise, you need to have permanent residence in Luxembourg. For the purchased property you must have liability insurance or property insurance.

Get to know the Luxembourg Work Visa Requirements in detail 

Documents Required for Luxembourg Residency 

The following documents are necessary to apply for the Luxembourg residency. 

• Application form
• Proof that you have sufficient funds 
• Proof of accommodation in Luxembourg
• Your passport, and birth certificate
• Prove that the investor income you have is legally obtained. For example, show your employment contract
• You also must have overseas health insurance 
• Documents providing that you have paid the taxes, as required 
• Provide documents to prove that you have met the investment conditions provided in the application.

Application Process to Obtain Luxembourg Citizenship By Investment 

Luxembourg citizenship by investment can only be made if you intend to stay in the country permanently. You can start the application process after paying the required fees and submitting the relevant documents.

• The  Ministry of Finance or the Ministry of Economy deals with the residence by investment applications. On the other hand, the Ministry of Foreign Affairs takes care of the residents for private reasons. You can seek the assistance of a local reputable agency to start this application.
• Once the application is approved your country will request an application for D visa or a national visa. 
• After obtaining the D visa, you can travel to Luxembourg (within 90 days), and undergo a medical examination.
• Once this medical examination is clear, you can apply for a residence permit 
• Finally, you can register with the commune of residence. This must be done within 3 days of arriving in Luxembourg.
• The residence permit you have obtained is valid for 3 years (Residence by investment option), and 1 year (under residence by private reasons).

Steps for Getting Luxembourg Citizenship by Investment 

After you have obtained the Luxembourg residence permit you can apply for permanent residency. However, you need to stay in the country for 5 years. Before sending the application ensure that you have stayed continuously in Luxembourg the previous year (the 5th year). To obtain Luxembourg citizenship you need to:

• Clear an integration course and oral test 
• The test is taken to prove that you know the Luxembourgish language

To know more about getting a Luxembourg citizenship, watch the video below:

Processing Time for Citizenship By Investment 

The processing time for citizenship by investment are as follows:

Particulars	Processing Time
Citizenship By Investment	6 months

How Much Investment is Required for Luxembourg?

You must invest at least EUR 500,000 to become eligible for Luxembourg citizenship by investment. The investment must be made in a company based in Luxembourg. You also need to meet the additional conditions specified in the program. The maximum amount you can invest for a Luxembourg investment visa is EUR 20 million.

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Validity & Renewal of a Luxembourg Residence Permit 

The Golden visa program provides an easy route to obtaining a residence permit in one of the wealthiest countries in Europe. It would take you around 6 months to get the residence permit. Once, you have obtained this permit there are two things you must be aware of-

• Visa validity: The Luxembourg residence permit is valid for 5 years. After 5 years of stay in Luxembourg you can apply for a residency.
• Renewal of residence permit; You can also apply for residence permit renewal. A visa renewal is accepted if you have been continuously living in Luxembourg and have been following the border criteria and other rules established by the European Affairs authorities. During the renewal process, you might have to demonstrate that you are complying with the conditions related to your investment.

Disadvantages of a Luxembourg Investment Visa 

The Luxembourg Citizenship by Investment Program has a disadvantage. That is, the Golden Visa program does not count the real estate investment. On the other hand, several other countries count the real estate investment. The real estate investment is important as the real estate can be utilised for both personal use and for renting it out to others. Investors can get additional income, and even return on investment (ROI) in 5-7 years.

European Countries that Offer Residency for Real Estate Investment 

Here is a list of European countries that offer residency for investment in real estate.

Investment Program	Processing Time	Expense
Greece Residence Permit	2-6 months	EUR 250,000
Malta Permanent Residence Program	4-6 months	EUR 150,000
Spain Residence Permit	2-3 months	EUR  500,000
Cyprus Residence Permit	More than 3 months	EUR 300,000

Key Points Regarding Luxembourg Taxation System

Applicants planning to invest in Luxembourg must know about the taxation system. Therefore, we have provided you with certain key information regarding taxation.

• Personal income tax: The highest earners pay up to 42% or EUR 200,000 personal income tax. However, this is influenced by several factors like the exemptions, family status, and other deductions.
• Corporate tax: The normal corporate tax rate is 24.94%. The amount is less for businesses engaged in finance and property.
• Value Added Tax: The VAT (of 17%) gets reduced to 3% or 8% for specific goods and services.
• Wealth tax: Luxembourg does not charge any wealth tax. However, a subscription tax may be applicable for insurance and finance companies.
• Real estate tax:  Transfer/sale of any immovable property in the country requires payment of a registration duty of 7%. However, for rental agreements, there are no registration agreements. An exception would be long term leasing agreements.

Can Indians get PR in Luxembourg?

Definitely. Indian applicants can get a PR in Luxembourg. One of the easiest ways to obtain a permanent residency in Luxembourg as an Indian is through the Golden visa program. The program allows you to invest a certain amount in businesses, and obtain permanent residence. However, the minimum investment amount is EUR 500,000, and the maximum is EUR 20 million. You also need to meet certain conditions associated with investment. 

After the investment is made, you can obtain a D visa and travel to Luxembourg. Later on, you can apply for permanent residency. Thereafter, you can apply for citizenship. Another way to obtain Luxembourg citizenship is through marriage, naturalization (staying in Luxembourg for a specified period), or by being a descendant of a Luxembourg citizen.

FAQs.

We hope you now understand what is Luxembourg citizenship by investment. Want to apply for a Visa for your study abroad journey? Drop us a comment in the section below, or you can connect with a visa expert at Leverage Edu, and we will guide you on your dream journey!

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