Luxembourg citizenship by investment is a popular option for high net worth individuals looking to relocate to Luxembourg. As a small but wealthy European country, Luxembourg offers an attractive lifestyle, business environment and access to the EU. Obtaining Luxembourg citizenship provides visa-free access to over 170 countries. There are several investment options available to foreign investors seeking Luxembourg citizenship, with the most popular being investing in government bonds or establishing a company and creating local jobs. The application process involves stringent due diligence checks on the applicant’s source of funds and background. While the minimum investment amounts are high, successful applicants gain the right to live, work and study anywhere in Luxembourg and the EU. Those who obtain Luxembourg citizenship by investment can also pass their citizenship on to future generations.
Luxembourg’s investor citizenship program requires a significant capital investment
Luxembourg operates an investor citizenship program that offers citizenship in exchange for a substantial economic investment. The most common options are: 1) Invest €12 million (or €24 million for a family) in government bonds or invest in a bank specialized in financing environmental projects. This is held for 5 years. 2) Invest €6 million (€12 million for a family) in either government bonds or qualifying investment funds. Again this is held for 5 years. 3) Establish or take over an existing company in Luxembourg and create at least 10 permanent jobs. The company must operate for 5 years and have either €1.5 million share capital or annual turnover of €20 million.
The application process is complex with strict due diligence requirements
The application process for Luxembourg citizenship by investment is lengthy and complex. It includes: – Submitting a formal application and paying fees of around €50,000 per adult. – Undergoing extensive due diligence checks to verify the source of invested funds and the applicant’s background. Any criminal history or tax issues can lead to rejection. – Holding the qualifying investment for at least 5 years from citizenship being granted. – Making Luxembourg your primary residence. Frequent travel and spending time abroad can risk losing citizenship. – Passing tests showing basic proficiency in any of Luxembourg’s official languages. – Attending mandatory integration courses on Luxembourg society and culture.
Benefits of Luxembourg citizenship include visa-free travel and EU rights
The key benefits of obtaining citizenship in Luxembourg through investment include: – Visa-free travel to over 170 countries including Europe’s Schengen area. – The right to live, work and study anywhere in Luxembourg and the EU. – Attractive tax rates – maximum income tax of 24%. – Minimal physical presence required – only needs to be in Luxembourg for 2 weeks per year after the initial 5 year investment period. – Citizenship can be passed down to future generations. – High standard of living, political stability, low crime levels in Luxembourg. However, investors should be prepared to invest significant capital upfront and undergo strict vetting procedures. Consulting professional firms can help guide you through the complex application process.
Luxembourg’s investor citizenship program offers a route to EU citizenship for wealthy individuals willing to make a substantial economic contribution to the country. Applicants should understand the stringent due diligence and mandatory physical presence requirements. Overall, Luxembourg remains an attractive destination for investment migration given its economic prosperity, central location in Europe and very high standard of living.