Recent Developments In Luxembourg's Immigration Regulations: New Opportunities For Investors And Global Companies

On 8 February 2017, the Luxembourg Parliament voted a new law on immigration (hereafter the "Law") which will enter into force in the coming weeks.

The main objective of the Law is to implement directive 2014/36/UE on the conditions of entry and stay of third-country nationals for the purpose of employment as seasonal workers and directive 2014/66/UE on the conditions of entry and residence of third-country nationals in the framework of an intra-corporate transfer.

The implementation of these two directives introduces two new categories of residence permits in Luxembourg (a residence permit for seasonal workers and a residence permit in case of temporary intra-company transfers), next to two other newly created categories of residence permits which have been introduced in Luxembourg, a residence permit for investors and a residence permit within the framework of a business continuity plan for non EU-companies.

Moreover, the Law also provides for various substantial amendments to the currently applicable immigration provisions which aim at increasing Luxembourg's attractiveness as a host country for foreign talents.

1. INTRODUCTION OF FOUR NEW IMMIGRATION CATEGORIES

   Immigration represents a major pillar of Luxembourg's economy which has always relied on foreign workforce in order to cover its rising needs in manpower due to its steady economic development over the last decades. Its dynamic economy makes Luxembourg not only a global hub for finance, insurance and banking activities but it has also made it attractive to numerous investors and highly skilled employees over the last years.

   The new immigration provisions are the answers to several requirements, including the diversification of the local economy and the will to continue attracting certain categories of migrants to encourage further investments in Luxembourg in order to diversify the national economy.

   1. Residence permit for investors

      The most important development and innovation of the Law, mostly from an economic point of view, is undeniably the creation of a residence permit for investors which aims at diversifying the national economy and encouraging entrepreneurship in Luxembourg whilst at the same time boosting the financial industry.

      A third country national interested in investing in Luxembourg may opt for one of the following investment plans in order to be granted a residence permit as an investor:

      Invest at least EUR 500.000.- in an existing Luxembourg company (with...