Participation on podcast about investment immigration in Luxembourg

Summary of the podcast:

Navigating Residence Permit Options in Luxembourg

Introduction: The Changing Landscape

Luxembourg's residence permit landscape has witnessed significant changes, with recent amendments impacting applicants seeking residence for personal reasons. The introduction of a new law in May has tightened the criteria for obtaining residence permits based on private reasons. Previously, foreign nationals could secure residence by proving adequate financial resources, but the new law now requires applicants to demonstrate professional activity within the European Union or receive a pension from a Social Security institution within the EU or Schengen area. This shift has raised concerns among applicants, particularly those from China, Russia, and the US, who have been significant beneficiaries of the previous scheme.

2. The Investor Residence Permit Option

In response to the limited popularity of the investor residence permit, Luxembourg had introduced an alternative option for investors and high-net-worth individuals in 2017. The investor residence permit grants certain privileges to those who invest in Luxembourg's economy. Investors have four options for investment, ranging from investing in existing companies to creating new businesses or making substantial deposits with financial institutions. However, the limited success of this permit has raised questions about the strict conditions and requirements imposed on applicants, leading to a low number of granted permits since its inception.

3. The Government's Intent and Challenges

The changes in residence permit policies stem from the Luxembourg government's aim to attract quality investors and entrepreneurs who genuinely contribute to the country's economic growth. The strict scrutiny applied to applications seeks to ensure that the investors bring meaningful value to Luxembourg and that the funds used for investment come from legitimate sources. This approach is also in line with the EU's efforts to combat money laundering and promote responsible investment practices. However, critics argue that the rigidity of the criteria may deter potential investors and entrepreneurs, especially when more lenient options are available in other countries.

4. Assessing Investor Visa Applicants

Applicants for the investor residence permit must present a comprehensive business plan outlining their proposed activities and the potential economic benefits to Luxembourg. The government evaluates each application on a case-by-case basis, ensuring that the proposed activity aligns with the country's economic and social interests. Additionally, investors must demonstrate their commitment to maintaining the investments for a specified period, discouraging divestment after obtaining the residence permit. While the investor visa route may not be as popular as desired, investors who genuinely contribute to Luxembourg's economy and align with its priorities stand a chance of securing the permit.

5. Seeking Professional Guidance

Navigating Luxembourg's residence permit options, whether for private or investor reasons, can be complex and challenging. For foreign investors and entrepreneurs looking to establish a business in Luxembourg, seeking professional advice from legal experts like Cora Maglo and collaborating with agencies like the Chamber of Commerce, House of Entrepreneurship, and Luxinnovation can prove invaluable. By understanding the specific requirements and opportunities available, applicants can better prepare and increase their chances of a successful application process, leading to a more sustainable and prosperous venture in Luxembourg.