Since the Law of 8 March 2017 amending the Law of 28 August 2008 on free movement and immigration came into force (on 24 March 2017), the regulation for third-country nationals (i.e. nationals who are not citizens of a Member State of the European Union or the European Free Trade Association, “TCN”) have been modified.

One of the major changes with this law is the possibility for TCN investors to obtain a specific residence authorisation/permit based on four investment options:

1. Who will invest at least 500,000 euros in an existing company, having its registered seat in the Grand Duchy of Luxembourg, while committing to maintain the investment as well as the employment level for at least 5 years (does not apply if the acquired company has financial difficulties and fulfills certain requirements) , or
2. Who will invest at least 500,000 euros in a company to be created, having its registered seat in the Grand Duchy of Luxembourg, and having a commercial or artisanal activity with the commitment to create at least 5 jobs to be filled in collaboration with the Luxembourg Unemployment Authority (ADEM) within 3 years of the creation of the company, or
3. Who will invest at least 3,000,000 euros in an existing or to be created investment and management structure with its registered seat in the Grand Duchy of Luxembourg and maintaining locally an appropriate structure, or
4. Who will invest at least EUR 20,000,000 in the form of a deposit in a Luxembourg financial institution (cash or financial instruments) with the commitment to maintain this investment for a minimum period of 5 years.

The investments can be made by the applicant in his own name or through an investment structure.

Regarding the first 2 options, the investment shall be made into companies from a specific economical sector determined by Grand-Ducal Regulation

Regarding the first 3 options, the investments shall be composed of at least 75% of the applicant’s own funds whilst the remaining 25% may be borrowed for a period of 3 years at least.

The last option (deposit of at least EUR 20,000.000) was clearly aimed at high net worth individuals (HNWI) wishing to have (part of) their fortune managed by Luxembourg professionals (loans for this option are excluded).

One exception is that the investments cannot be related directly or indirectly to the real estate market (sale or lease).

The residence permit for investors will be valid for an initial period of 3 years, subject to renewal for further 3 years.

The TCN investor also authorizes to make an application for a business license (provided the requirements therefore are fulfilled).