Luxembourg · Residency by investment

Investor Residence Permit (loi du 8 mars 2017)

Open Last verified July 2026

OPEN BUT SLATED FOR ABOLITION. Home Affairs Minister Léon Gloden tabled a repeal bill before parliament's summer recess in 2025. He argued the programme added very little value for the administrative burden it created. As of July 2026 the repeal has not been adopted, and guichet.public.lu still publishes the conditions as current. Anyone considering this route should assume the window is closing.

The most instructive failure in European investment migration. Nine people have been approved since 2017 out of just 15 applicants. Four of the six who applied across 2023–2024 were refused. Luxembourg priced an EU residence permit at EUR 500,000–20m, demanded real substance and real jobs, and refused real estate. The market wanted none of it. The government is now legislating it away.

Qualifying routes

€500k
Investment in an existing Luxembourg company

A commercial, craft or industrial activity. Hold it for at least 5 years and keep employment at the level it stood at when you invested.

€500k
Investment in a new business to be created

At least 5 jobs created within 3 years of incorporation, hired in cooperation with the National Employment Agency (ADEM).

€3M
Investment in a management and investment structure

Existing or newly created. It must have, and keep, genuine substance in Luxembourg.

€20M
Deposit with a Luxembourg financial institution

Held for a minimum of 5 years. At EUR 20m, this is one of the most expensive residence routes in the world, and it has attracted essentially no takers.

The facts

Minimum investment
€500k
Total landed cost
EUR 500,000 at the low end, rising to EUR 20m for the deposit route, plus legal, structuring and Ministry of Finance opinion costs. The capital is invested, not spent. But the 5-year lock-up and the substance conditions make it genuinely illiquid.
Route type
Residency by investment
Timeline
6–12 months (Requires a prior opinion on the investment project from the Ministry of Finance, obtained before the residence application is filed.)
Physical presence
Genuine residence is expected. The permit is valid for a maximum of 3 years, and it renews only if the conditions still hold.
Family
SpouseDependent children, through family reunification
Permanent residency
5 years of legal residence
Citizenship
5 years of residence, with the final year continuous
Language test
The Sproochentest in Luxembourgish (A2 spoken, B1 listening comprehension), plus a course on living together in the Grand Duchy.
Dual citizenship
Permitted
Requirements
third-country (non-EU/EEA/Swiss) nationala favourable prior opinion on the investment project from the Ministry of Financeproof of lawful origin of fundsclean criminal recordadequate accommodation and health insuranceMaintaining the investment and its conditions for 5 years.
What can go wrong
  • A repeal bill is before parliament. If adopted, it would close the route. How existing holders would be treated under any transitional regime is not yet clear.
  • Real estate is explicitly excluded. Direct and indirect investments involving the purchase or rental of real estate are not taken into consideration.
  • The approval rate is genuinely poor. 4 of 6 applications were refused across 2023–2024. This is not a rubber stamp.
  • The EUR 500,000 routes carry hard operating obligations. You must maintain employment levels for 5 years, or create 5 jobs within 3 years via ADEM. These are business commitments, not investments.
  • The EUR 3m structure route requires genuine substance, and that substance must be maintained. Regulators scrutinise it closely.
  • Luxembourg residence makes you taxable at up to 45.78%, with exposure to CFC rules and exit tax. For most UHNW families, the tax consequences of the permit dwarf its benefits.
  • Only 3-year validity, renewable — not a durable status until permanent residence at 5 years.
Sources (2)

Path to permanent residence and citizenship

Permanent residency. 5 years of legal residence

Citizenship. 5 years of residence, with the final year continuous

Language test. The Sproochentest in Luxembourgish (A2 spoken, B1 listening comprehension), plus a course on living together in the Grand Duchy.

Dual citizenship. Permitted

Frequently asked

How long until citizenship through the Investor Residence Permit (loi du 8 mars 2017)?

5 years of residence, with the final year continuous. A language requirement applies: the Sproochentest in Luxembourgish (A2 spoken, B1 listening comprehension), plus a course on living together in the Grand Duchy.

What does the Investor Residence Permit (loi du 8 mars 2017) cost?

The minimum qualifying investment is €500k. EUR 500,000 at the low end, rising to EUR 20m for the deposit route, plus legal, structuring and Ministry of Finance opinion costs. The capital is invested, not spent. But the 5-year lock-up and the substance conditions make it genuinely illiquid.

How much time must I spend in Luxembourg?

Genuine residence is expected. The permit is valid for a maximum of 3 years, and it renews only if the conditions still hold.

Who can I include in the application?

Spouse; Dependent children, through family reunification.

Before you commit capital to this

Tell us your citizenship, your tax exposure and where your family wants to be in ten years. If this route is wrong for you, we will say so.

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