Luxembourg Set to End Golden Visa Program Amid EU Pressure and Low Uptake

Luxembourg is preparing to discontinue its Golden Visa Program, signaling a shift in its approach to attracting foreign investment. While the government has not yet provided a specific termination date, officials have confirmed that the process to phase out the program is underway and legislative changes are expected soon.

What Was Luxembourg’s Golden Visa Program?

Introduced in 2017, Luxembourg’s Golden Visa Program offered non-EU investors a path to residency in exchange for significant financial investment. Applicants could qualify by:

• Investing at least €500,000 in an existing or new Luxembourg business that created at least five jobs
• Investing €3 million in management structures
• Depositing €20 million in a Luxembourg financial institution
• Alternatively, earning an annual income of €27,000 for residency on private grounds

Successful applicants received a temporary residence permit valid for up to five years. After five years of residency and meeting language and citizenship requirements, permit holders could apply for Luxembourgish citizenship.

Low Uptake Despite Recent Interest

Since its launch, the program has seen very limited interest. Only 15 applications have been submitted in total, with just a handful approved. In 2023 and 2024, only six applications were filed, and four were rejected. Most recent applicants came from countries such as Russia, Israel, India, and China. Luxembourg’s stricter investment requirements compared to other EU countries are thought to have contributed to the low participation rate.

Why Is Luxembourg Ending the Program?

Several reasons are driving this decision:

• EU Pressure: The European Commission has called for the end of Golden Visa schemes, citing concerns about security, money laundering, and other risks. The scrutiny increased after Russia’s invasion of Ukraine in 2022.
• Limited Effectiveness: Luxembourg’s government has questioned whether the program delivers real economic or social benefits, given the low number of applicants and the country’s strong economy.
• Regional Trends: Other EU countries, including the Netherlands, Ireland, Portugal, and Spain, are also ending or modifying their investor visa programs.

Ending the program will require changes to Luxembourg’s immigration laws, which means a bill must be drafted and approved by parliament. No timeline has been announced yet, so current and prospective applicants face some uncertainty.

If you’re considering Luxembourg for residency, keep an eye on government updates. If you already hold a Golden Visa, it’s wise to consult with immigration professionals to understand how these changes might affect your residency status. For those exploring residency in Europe, it may be time to consider alternative pathways, as similar programs are being phased out across the EU.

In short, Luxembourg’s move to end its Golden Visa Program is part of a larger European trend, driven by both internal assessments and external pressure from the EU. More details will emerge as the legislative process unfolds.

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