Luxtoday
Business

Business and investment visa in Luxembourg

Turn your vision into reality in Luxembourg. Their visa program cuts through red tape for entrepreneurs and investors. We'll guide you through everything, from visa types to applications.

Last time updated
07.10.24

Luxembourg has historically attracted entrepreneurs and investors, to the extent that the investment fund sector is currently the world's second-largest after the United States.

Why start a business or invest in Luxembourg? 

One area where Luxembourg particularly excels is in investment funds, to the extent that the investment fund sector is now the world's second-largest after the United States. At the end of 2023 – beginning of 2024, the Grand Duchy managed assets worth over 5.1 trillion euros

This can be attributed to decades of legislative continuity that have created favorable conditions for the financial industry. Legislation was crafted with input from the country's top financial experts working hand in hand with legislators to carefully weigh the pros and cons of each aspect of the legislation. 

Yet, many other factors make the Grand Duchy an excellent place to start a business and invest, catering to large, medium, and even small-scale entrepreneurs
Location
Situated in the heart of Europe, Luxembourg serves as a convenient gateway to key European markets. Its proximity to major financial capitals like London, Paris, and Frankfurt makes it ideal for international business.
Stability
Luxembourg is renowned for its political and economic stability. It boasts a stable political system and a diversified, thriving economy.
Infrastructure
As one of Europe's premier financial centers, Luxembourg boasts advanced financial infrastructure, including banks, investment funds, insurance companies, and investment firms, making it an attractive destination for investors.
Taxes
Luxembourg offers a favorable tax regime for businesses and investors, with one of the lowest corporate tax rates in Europe and a variety of tax incentives to attract foreign businesses and investments.
Legal framework
Luxembourg has a robust and transparent legal system, providing legal certainty to investors and entrepreneurs.
Life
Beyond its financial prowess, Luxembourg also offers a high quality of life, featuring a safe environment, excellent healthcare, quality education, and cultural diversity that attracts professionals from around the globe.
Show all

Types of visas available for business persons in Luxembourg

Before diving into business or investment visas, let's get a clear picture of Luxembourg's visa landscape. The key thing to know is that EU citizens and residents of Iceland, Norway, Liechtenstein, and Switzerland don't need a visa to live, work, or invest in Luxembourg. They have the same rights as Luxembourgers in this regard.

However, if you're from outside the EU, you'll generally need a visa or residence permit to legally live, work, or invest in Luxembourg. This will help us determine the specific type of visa you'll need for your business or investment goals. But first, here are the visas types generally available for different terms of stay.

Different reasons for entry and time frame

For example, if you are visiting Luxembourg for a conference or participation in the business meeting, you can opt for C visa. Any other case, exceeding the allowed time for short stay, you will need a D visa and residency permit in some cases.

Short-stay Visa (C)
Long-stay visa (D)
Residence permit

Detailed process of application for business visas

Now that we have an overview of the topic and understand the different types of visas, we are going to explore the prerequisites for two distinct types of permits that allow for business and investments in Luxembourg: the residence permit as a self-employed worker and the residence permit as an investor.

Visa for self-employed workers in Luxembourg

To work as a self-employed entrepreneur in Luxembourg, whether under one's own name or through a company in the Grand Duchy, one must apply for a residence permit as a self-employed worker.

To do so, applicants must fulfill and submit the following documents along with the application:
Check yourself
See if you have all the necessary papers ready to apply for a visa.
*The mandatory items are marked with red asterisks.
A business and financing plan
Prospects for revenue and financial statements for existing business
Proof of financial resources to execute the business project
A personal bank statements, showing enough money to live in the country and execute a business, around 20,000 euros.
In the case of acquiring an existing business, the balance sheets and profit and loss accounts
Papers must be for the past three financial years
Establishment permit
If the self-employed activity requires an establishment permit, the opinion issued by the Ministry of Economy regarding the issuance of an establishment permit must be provided.
Other related permits, such as licences
If the activity is subject to other authorizations, approvals, or registrations, a copy of the authorization or registration/approval, or an agreement in principle from the competent authority is necessary.
Check yourself
See if you have all the necessary papers ready to apply for a visa.
*The mandatory items are marked with red asterisks.

Visa for investors in Luxembourg

To obtain a visa or residence permit as an investor, interested individuals must choose one of the following four investment options, present their project or proof of investment to the Ministry of Economy or the Ministry of Finance, and obtain a favorable response before applying for a residence permit.

  1. A minimum of 500,000 euros in an existing Luxembourgish company (engaged in commercial, industrial, or craft activities).
  2. A minimum of 500,000 euros in a new Luxembourgish company (engaged in commercial, industrial, or craft activities).
  3. A minimum of 3 million euros in an existing or new investment or management structure, with its registered office in Luxembourg.
  4. A minimum of 20 million euros through a deposit in a financial institution established in Luxembourg.

General procedure for visa application in Luxembourg

Now that we've outlined the prerequisites for visas as a self-employed entrepreneur or investor, we'll explore the general procedure to be followed once these prerequisites are met. This procedure is practically the same for most long-stay visas and residence permits and involves the following steps.

Before entering the country

The first step is to apply for a temporary residence permit, long-stay visa and enter the country lawfully.

Apply for a temporary residency
Apply for a long-stay visa

After entering the country

The second stage, once in Luxembourg, involves three steps: making an arrival declaration, undergoing a medical examination, and then applying for a residence permit.

Complete an arrival declaration
Undergo a medical examination
Apply for a residence permi

How to avoid rejection and what to do in case of rejection?

Understanding common reasons for visa rejection and knowing what steps to take in case of rejection are crucial for a smooth visa application process. By familiarising yourself with these factors, you can avoid pitfalls and increase the likelihood of a successful application.

Here are some of the main reasons why a visa application may be denied. Review them carefully to ensure your application proceeds smoothly.

Lack of clarity in the purpose of your visit

Include a detailed letter explaining the reason for your trip to Luxembourg alongside your documents.

Insufficient evidence of funds

Make sure you meet the financial requirements according to the type of visa.

Submission of unreliable or false travel documents

Always provide genuine documents from reputable sources.

Human errors

Mistakes can also occur. If you believe this may be the case, consider appealing the decision.
Appeal deadlines

If your visa application is rejected, you have the option to appeal the decision to the Administrative Tribunal. The appeal must be filed by a lawyer within 3 months from the notification of the resolution. You can find more information on how to initiate this process on the government website at guichet.lu

Individual
Work
Luxembourg

Guide on becoming self-employed and moving to the country as freelancer

faq

Frequently Asked Questions (FAQ)

How can I enter Luxembourg as a business person?

How much money do I need to invest for an Investor Visa in Luxembourg?

How to appeal visa rejection in Luxembourg?

Send feedback

We took photos from these sources: Medienstürmer on Unsplash

Authors: Luz
Was this article helpful?
Very helpful!
Informative!
I didn’t get it.
This is outdated.