Luxembourg Residence Permit - Programs and Conditions

The Grand Duchy of Luxembourg is one of the smallest countries in Europe. Despite its modest size, the country consistently ranks among the highest in GDP per capita year after year. In 2024, Luxembourg topped the Quality of Life Index with a score of 219.3, surpassing the Netherlands and Denmark. The country boasts a AAA credit rating and is home to offices of thousands of international companies, insurance agencies, and banks.

Average Salary and Cost of Living

Luxembourg has one of the highest average annual salaries in the world, approximately €75,168 per year, or about €6,264 per month. Basic living expenses for residents start at €990 per month (excluding rent).

Residence Permits in Luxembourg

Visitors planning to stay in Luxembourg for over 90 days must obtain a long-term residence permit. Holding a residence permit allows individuals to legally reside in Luxembourg, travel freely to other Schengen and EU countries (except Ireland), and serve as the first step towards permanent residency and citizenship through naturalization.

Foreign nationals can apply for temporary resident status for various reasons, such as employment, marriage, entrepreneurship, or investment. The first step involves applying for a residence permit and obtaining a visa D. Upon arrival in Luxembourg, applicants must file a declaration of arrival, undergo a medical examination, and provide biometric data.

This article from GARANT.in’s licensed experts explores the advantages, requirements, grounds, documentation, and stages for obtaining a residence permit in Luxembourg.

Advantages of Luxembourg Residence Permits

Obtaining temporary resident status in Luxembourg offers several benefits:

1. Long-term stay in the Grand Duchy (as per the validity of the permit), and visa-free travel within the Schengen Zone and EU countries for up to 90 days within 180 days.
2. The ability to invite family members for temporary residence.
3. The right to work in Luxembourg and switch jobs (depending on the type of residence permit).
4. Access to prestigious education in European universities is available for both the resident and their family members legally residing with them.
5. The ability to access healthcare and obtain medical insurance.
6. Eligibility for social insurance, including unemployment benefits in case of job cuts.
7. The right to take exams and obtain a European-standard driver’s license.

Eligibility Criteria for Luxembourg Residence Permits

To apply for a residence permit, foreign applicants must meet the following criteria:

1. Hold a valid passport (with at least six months’ validity at the time of application for a visa).
2. Have no criminal record in their home country or current country of residence.
3. Provide evidence supporting the purpose of their long-term stay in Luxembourg.
4. Hold a pre-approval and an entry visa (usually a national visa type D).
5. Pass a medical examination confirming the absence of diseases posing a threat to public health.

Valid Grounds for Obtaining a Residence Permit

Applicants must have legitimate grounds for long-term residence in Luxembourg. These include:

Employment

Applicants with a job contract with a local company or on an intra-corporate transfer (e.g., for training, internships, or long-term assignments) may qualify for a residence permit. Typically, such permits are issued for 12 months and can be renewed. Highly qualified professionals may apply for an EU Blue Card for up to four years, subject to minimum salary thresholds.

Entrepreneurship and Business

Self-employed individuals, entrepreneurs, or business owners must meet specific requirements:

• Hold qualifications relevant to the intended activity.
• Have sufficient financial resources to support their business plan.
• Prove that their business aligns with Luxembourg's cultural or social interests, is profitable, and generates revenue.

Investment

Luxembourg allows residence permits through investment, with options including:

• Investing at least €500,000 in a local company.
• Contributing €500,000 to a startup registered in Luxembourg.
• Depositing €20,000,000 in a Luxembourg bank for at least five years.

Education

Students enrolled in Luxembourg universities may apply for temporary residency. Requirements include proof of admission, financial support for living expenses (€1,200/month), and health insurance.

Family Reunification

Close relatives, such as spouses, minor children, or parents of minor children with international protection status, can apply for residency. The sponsor must demonstrate adequate income, housing, and health insurance coverage.

Private Reasons

Independent financial means or ties to family in Luxembourg can serve as grounds for applying for residency under specific conditions.

Required Documents

Applicants must submit a basic set of documents, which may include:

• A valid passport.
• A criminal record clearance certificate.
• A completed residence permit application form.
• Medical examination results.
• Proof of payment for associated fees (€80).
• Evidence of residence in Luxembourg (rental agreement or property ownership).
• Health insurance coverage starts at €30,000.

Stages of Obtaining a Residence Permit

1. Preparation: Translate and legalize documents.
2. Residence Status Application: Submit to the consulate or diplomatic mission.
3. Visa Application: Apply for a type D visa for entry.
4. Local Registration: Confirm residence in Luxembourg within three days of arrival.
5. Medical Check: Undergo health screening.
6. Residence Card Issuance: Submit biometric data and obtain the residence card.

Permanent Residency and Citizenship

After legally residing in Luxembourg for five years, applicants can apply for permanent residency, which offers indefinite stay rights. To maintain residency, applicants must not leave the country for extended periods.

If you need expert assistance navigating Luxembourg’s immigration process, GARANT.in provides comprehensive support to ensure a smooth application process.