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
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.
A short-stay visa allows individuals to stay in the Schengen area continuously or intermittently for a maximum of 90 days within 180 days. This visa is typically used for:
- Tourist or family visits
- Participation in conferences, trade fairs, or exhibitions
- Business travel (visiting business partners, negotiating, and concluding contracts, etc.)
- Participation in boards of directors and general meetings
- Provision of services within the same group of companies
This visa is intended for nationals of non-European countries who wish to travel to Luxembourg for more than 3 months. Additionally, those who wish to obtain a residence permit to live in Luxembourg for more than a year and cannot enter European territory temporarily without applying for a visa must also apply for this type of visa. Specifically, this visa is intended for:
- Holders of a temporary residence permit
- Holders of a work permit for paid employment
- Those who are going to join a family member who is an EU citizen
- Those who want to carry out any other type of activities such as self-employed work, investments, studies, research, or sports activities
Individuals planning to live in Luxembourg for more than one year must obtain a residence permit. It's important to note that citizens of certain visa-required countries must first apply for a long-stay visa (type D).
Unlike a visa, a residence permit grants individuals the right to reside and engage in specific activities in Luxembourg for a longer period. There are many types of residence permits depending on the activities intended to be carried out in Luxembourg and the family relationships of the applicants.
Business-related permits for investors and self-employed persons include
Investors
Self-employed
Each residence permit has its own requirements and application procedures. Further, we will examine the requirements and procedures related to residence permits for self-employed workers and investors.
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.
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.
- A minimum of 500,000 euros in an existing Luxembourgish company (engaged in commercial, industrial, or craft activities).
- A minimum of 500,000 euros in a new Luxembourgish company (engaged in commercial, industrial, or craft activities).
- A minimum of 3 million euros in an existing or new investment or management structure, with its registered office in Luxembourg.
- 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.
The first step is to apply for a temporary authorisation to stay. The applicant must submit a request for temporary residence authorization on plain paper from their country of origin to the Immigration Directorate of the Ministry of Foreign and European Affairs, a Luxembourg diplomatic or consular representation, or a diplomatic or consular mission representing Luxembourg.
This request should include the applicant's identity with their exact address and be accompanied by the following documents and information:
- A copy of the passport, valid for at least 3 months after the expiration date of the visa requested,
- If the applicant already resides in the Schengen area, a copy of the residence permit from another EU member state,
- A criminal record extract or an affidavit issued in their country of residence,
- A curriculum vitae (only for the self-employed worker visa),
- The specific requirements for each type of visa mentioned in the previous section.
Now we wait
The response time is a maximum of 3 months for both types of visas. If the application is approved, the temporary residence permit will be sent by mail. This temporary residence permit will be valid for 90 days.
In addition to the temporary permit, certain individuals need to apply for a long-stay visa (type D visa) to enter Luxembourg. This depends on the agreements between the applicant's country of origin and Luxembourg. The Luxembourg government has a webpage listing all countries whose citizens need to apply for this visa.
To make this request, it is necessary to personally visit the Luxembourg diplomatic or consular mission in the country of origin or the embassy or consulate of the Schengen country representing Luxembourg within 90 days of obtaining the temporary residence permit and submit an application for a type D visa accompanied by the following documents:
- 2 recent identical passport photos,
- Copy of the passport with a validity exceeding the end of the visa period by at least 3 months,
- The granted temporary authorisation to stay letter.
Cost of the visa
This visa costs 50 euros and is valid for 90 days. Once approved, it is stamped in the passport in the form of a seal or sticker.
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.
Within 3 days of arriving in Luxembourg, it is mandatory to make an arrival declaration at the municipality of residence. Required documents include:
- A valid identification document such as a passport, visa, or residence permit issued by another EU member state,
- The temporary residence permit,
- Proof of address, which can be a lease agreement or utility bill.
In two copies
Upon completion, the applicant receives two copies of the arrival declaration in the form of a receipt at the commune. One of them must be sent to the ministry with the next pack of documents.
The next step involves undergoing a medical examination as soon as possible. This examination comprises two components:
- A medical examination conducted by a general practitioner in Luxembourg.
- A tuberculosis screening test performed by a medical analysis laboratory. A prescription from the doctor who conducted the medical examination is required for this test.
No need to send the documents yourself
Following the results, the Health Inspection of the Ministry of Health issues a medical certificate, which is then sent to the Immigration Department of the Ministry of Foreign and European Affairs to process the residence permit application.
If you plan to stay in Luxembourg for more than one year, you will have to apply for a residence permit in addition to the long-stay visa type D. The application for a residence permit must be submitted within 3 months of arriving in Luxembourg to the Immigration Directorate of the Ministry of Foreign and European Affairs. This can be done online through MyGuichet.lu or by mail, by sending the residence permit application form to the Ministry of Foreign and European Affairs.
In both cases, the following documents must be attached:
- A copy of the passport,
- A copy of the temporary residence authorisation,
- Arrival declaration issued by the municipal administration,
- Proof of suitable housing, which can include a lease agreement, property deed, or other relevant documents,
- Proof of an 80-euro fee payment via bank transfer to the account IBAN LU46 1111 2582 2814 0000 (BIC: CCPLLULL, beneficiary: Ministry of Foreign and European Affairs, Immigration Directorate; communication: residence permit for ...).
What's next?
Upon approval of the application, the applicant receives a letter inviting them to schedule an appointment with the Immigration Directorate for the capture of a photo and fingerprints, which will be incorporated into the residence permit.
A few days after providing biometric data, the applicant will receive a summons to personally collect their residence permit from the Immigration Department.
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
Insufficient evidence of funds
Submission of unreliable or false travel documents
Human errors
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.
Guide on becoming self-employed and moving to the country as freelancer
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?
Source: mae.gouvernement.lu, guichet.public.lu, www.virgule.lu, guichet.public.lu, lequotidien.lu, www.cc.lu, guichet.public.lu, guichet.public.lu
We took photos from these sources: Medienstürmer on Unsplash