Based on the Luxembourg law, several options can be provided to third-country nationals willing to relocate to Luxembourg:
- Opening of a company in Luxembourg. In this case it is necessary to be an employee of the same company, have a registration in the country and be an active tax resident (paying taxes, social security). His/her remuneration should be at least €74,000 (1.5 times the Luxembourg average gross annual salary) in order to obtain a working visa. This remuneration might be lower subject to a prior job vacancy publication through Luxembourg Employment Agency that is unfulfilled by existing Luxembourgish residents within a 3-week period.
- Investing of at least €3 million in a management and investment structure with a registered office in Luxembourg (new or existing) that has and maintains the necessary substance (office, bank account, at least 2 jobs created).
- Obtaining of a residence for a period of 5 years, subject to the investment of min. €500,000 to the Luxembourgish economy (new or existing companies). The company must or will have to carry out a commercial, crafts or industrial activity. Direct and indirect investments concerning the acquisition or rental of real estate are not taken into consideration in order to obtain a residence permit for investors.
Since April 2017 Luxembourg reformed its citizenship law. As a result, the 7-year period of permanent residence in Luxembourg was reduced to 5 years to obtain the citizenship (also subject to minimal Luxembourgish language requirements -A1-). Dual citizenship is permitted.
Concerning the structure of the company, it is necessary to establish first the nature and the scope of the investments envisaged by your client. Will summarise below some options:
SOPARFI (Societe de Participations Financieres): can take most legal forms (SA, Sarl, Sca..); is subject to a fixed €3,210 tax p.a. if the investments represents at least 10% of the capital or acquisition costs of at least €1,2 million for dividends or acquisition costs of at least €6 million for sale profits and have a minimum period of ownership of 12 months. If not, it is subject -in general- to corporate taxation of 28,2%.
SPF (Societe de gestation de Patrimoine Familial): can take most legal forms; commercial activity, management of subsidiaries and direct holding of immovable property are prohibited; only subject to a 0.25% subscription tax (ceiling of €125,000) computed on the value of paid-up share capital and certain debts.
Concerning the documents needed for a working/investor visa:
- a certified copy of their valid passport, in its entirety;
- a birth certificate;
- a copy of the police record or an affidavit (sworn oath) established in the country of residence;
- a curriculum vitae;
- a certified copy of the applicant’s diplomas or professional qualifications;
- a copy of the employment contract/ the investment project or the proof of investment
- a covering letter to support the application
Our company provides business registration services in Luxembourg for foreign residents. Should you have any questions, don’t hesitate to contact us.