ICLG 4th Edition - Corporate Immigration 2017

1 Introduction

1.1 What are the main sources of immigration law in your jurisdiction?

The main source is the Law of 29 August 2008 on the freedom of movement and immigration (the "Immigration Law"), as recently amended by the law of 8 March 2017.

1.2 What authorities administer the corporate immigration system in your jurisdiction?

The Immigration Directorate - Department for Foreigners of the Ministry of Foreign and European Affairs administers all aspects of immigration including corporate immigration.

1.3 Is your jurisdiction part of a multilateral agreement between countries (EU/NAFTA/MERCOSUR) which facilitates the movement of people between countries for employment purposes?

Luxembourg is a founding Member State of the EU, as well as the Schengen Area, and is a member of the EEA (European Economic Area).

It grants immigration and employment of EU, EEA, and EFTA (European Free Trade Association) citizens in compliance with the EU freedom of movement principle.

EU citizens as well as third-country nationals whose direct relatives are EU nationals do not need to secure a permit or visa to enter and work in Luxembourg.

Within the Schengen territory all internal borders were abolished to create one single external border. The Schengen Agreement also proclaims shared common rules and procedures for visas for short stays, asylum requests and border controls.

2 Business Visitors

2.1 Can business visitors enter your jurisdiction under a relevant visa waiver programme?

EU citizens do not need a permit or visa to enter and/or work in Luxembourg. This benefit is in principle also granted to third-country nationals whose direct relatives are EU nationals as well as to EEA or EFTA nationals.

Citizens of the following third countries currently do not require a visa for short stays (i.e. less than 90 days): Albania; Andorra; Antigua and Barbuda; Argentina; Australia; Bahamas; Barbados; Bosnia-Herzegovina; Brazil; Brunei; Canada; Chile; Costa Rica; Croatia; Dominica; El Salvador; Former Yugoslav Republic of Macedonia (FYROM); Grenada; Guatemala; Honduras; Hong Kong; Israel; Japan; Macao; Malaysia; Mauritius; Mexico; Monaco; Montenegro; New Zealand; Nicaragua; Northern Mariana Islands; Panama; Paraguay; St. Kitts and Nevis; Samoa; St. Lucia; Serbia; Seychelles; Singapore; South Korea; St. Vincent and the Grenadines; Taiwan; Timor-Leste; Trinidad and Tobago; United Arab Emirates; the United States of America; Uruguay; Vanuatu; and Venezuela.

The concerned citizens can stay for maximum 90 days during any period of 180 days in Luxembourg or the Schengen Area for business purposes.

Citizens from the other third countries can enter on the basis of a short stay visa (visa C) to transit through or stay in the Schengen area or for a long stay visa (visa D).

2.2 What is the maximum period for which business visitors can enter your jurisdiction?

Third-country nationals may enter the Luxembourg territory for business reasons either for a short stay (i.e. maximum 90 days), with or without a visa (depending on the concerned person's citizenship), or a long stay (i.e. for a period exceeding 90 days), subject to a temporary residence authorisation and a long-term residence permit.

2.3 What activities are business visitors able to undertake?

Business visitors who come to Luxembourg on a short-term basis can undertake business trips (visiting professional partners, negotiating and concluding contracts, etc.), participate in board of directors' meetings and general meetings or provide services within a group of companies.

2.4 Are there any special visitor categories which will enable business visitors to undertake work or provide services for a temporary period?

Yes, but subject to prior authorisation by the authorities.

It is further to be noted that the Immigration Law provides for the possibility to use Luxembourg as a back-up centre. In case a serious incident occurs in a third country, the relevant foreign company may temporarily, and on very short notice, send employees to Luxembourg in order to ensure business continuity, subject to a pre-clearing procedure.

2.5 Can business visitors receive short-term training?

This is currently not expressly foreseen under the Immigration Law and would have to be verified on a case-by-case basis.

3 Immigration Compliance and Illegal Working

3.1 Do the national authorities in your jurisdiction operate a system of compliance inspections of employers who regularly employ foreign nationals?

Illegal working is controlled by the Luxembourg police and by customs officers. It can also be controlled by the Labour Inspectorate and by the department of the Ministry of Economy which is in charge of delivering business permits. These authorities have to notify the tax and the social security administrations of any offences observed.

3.2 What are the rules on the prevention of illegal working?

The employer must verify that an authorisation to stay (or working permit, depending on the case) has been granted to the employee before he/she is recruited as well as during the working relationship. During his/her employment, the employee has to keep a copy of his/her authorisation to stay with him/her for possible examination which may occur from time to time. The employee must also spontaneously inform the employer, should the employee's authorisation to stay (or working permit, depending on the case) forfeit during the working relationship.

3.3 What are the penalties for organisations found to be employing foreign nationals without permission to work?

Employers who illegally employ one or more employees from third countries with no valid authorisation to stay and work in Luxembourg may face administrative, financial and criminal sanctions.

In addition, the sanctioned employer can be forced to pay any outstanding remuneration to the illegally employed third-country national as well as an amount equal to any taxes and social security contributions that the employer would have paid, including relevant administrative fines or legal fees.

4 Corporate Immigration - General

4.1 Is there a system for registration of employers who wish to hire foreign nationals?

The employment of nationals of any EU Member State, other EEA countries and Switzerland is not subject to specific requirements.

If EU nationals or EEA/Swiss nationals intend to stay in Luxembourg for more than three months, they must merely declare their arrival and obtain a registration certificate from the local authorities in the area where they are living.

In case an employer located in Luxembourg wishes to employ a non-EU or non-EEA/Swiss national for a period exceeding 90 days, the general procedure is as follows:

The employer must notify the job vacancy to the public Employment Development Agency (Agence pour le développement de l'emploi, ADEM).

The notification must state that the employer intends to employ a non-EU or non-EEA/non-Swiss national. If the ADEM cannot fill the vacancy with a registered European jobseeker within three weeks, the employer may apply to ADEM for a certificate entitling the employer to recruit a non-EU or...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT