New Law Brings Investors To The Grand Duchy

Luxembourg has recently published a new law, showing quick work in adapting to the EU's immigration law legal framework. The new law is characteristic of a government that wishes to attract foreign investors and, specifically, high net-worth investors (HNWIs).

Previously, the criteria and conditions for residence permits were, at points, unclear or ambiguous, and did not always put clear investment thresholds for applicants to meet. With the new law, these cobwebs will be cleaned out and replaced by unambiguous language. It introduces residence permits for those who:

invest at least €500,000 in an existing enterprise that has its legal seat in the Grand Duchy and that performs commercial, artisanal, or industrial activities; the investor must also commit to maintaining the same level of investment and employment for at least five years invest at least €500,000 in a newly established enterprise that has its legal seat in the Grand Duchy and that performs commercial, artisanal, or industrial activities; the investor must also commit to hiring at least five employees (in collaboration with ADEM) within a three year period following the creation of the new company invest at least €3 million in a financial/management structure that already exists or is going to be created with its legal seat in the Grand Duchy, and that meets Luxembourg's substance requirements invest €20 million in the form of a deposit in a financial institution established in the Grand duchy; the investor must also commit to maintaining that investment for at least five years The residence permit is granted for a period of three years and is subject to further extension.

Opening the gates for HNWIs is meant to help maintain Luxembourg's attractiveness at an international level, while developing and diversifying its economy. With this law, Luxembourg aims to become a leader in an environment marked by competitiveness and by interdependence amongst national economies.

Incoming!

The new law is expected to usher in qualified investors, naturally with their families in tow—leading to the need for further development of national infrastructure: universities, nurseries, and so on. The influx should create local jobs to accommodate a growing country with more demands.

We can assume that the main populations targeted by...