Luxembourg to Scrap Golden Visa Program After Attracting Only Nine Investors in Seven Years

Luxembourg is preparing to shut down its “golden visa” scheme, a residency-by-investment program that has delivered little return since its launch in 2017. Home Affairs Minister Léon Gloden has introduced draft legislation to parliament proposing the repeal of the measure, calling it costly and ineffective.

The program, which allowed non-EU nationals to gain residence permits by investing a minimum of €500,000 in Luxembourg companies, approved just nine applications in seven years. In total, only 15 people ever applied, with four out of six applications submitted in 2023 and 2024 being rejected. Applicants reportedly came from Russia, Israel, India, and China, though officials declined to disclose specific reasons for the rejections.

“Very Low Added Value”
According to Minister Gloden, the scheme brought “very low added value” to Luxembourg’s economy while creating disproportionate administrative burdens. The government’s stance marks a sharp U-turn from April 2023, when officials said ending the golden visa was not on the priority list.

Pressure from Brussels also played a role. The European Commission has long warned that golden visa and citizenship-by-investment schemes pose risks of money laundering, tax evasion, corruption, and misuse by sanctioned individuals—especially after Russia’s invasion of Ukraine. Concerns centered on the possibility of sanctioned Russians or Belarusians using such programs to bypass EU travel restrictions.

A European Trend
Luxembourg now follows other EU countries in scrapping their schemes. Ireland ended its Immigrant Investor Program in 2023, Spain closed its golden visa program earlier this year, and the Netherlands dropped its investor visa after approving just ten applicants in a decade. Malta also suspended its citizenship-by-investment plan following an EU court ruling, shifting toward a merit-based approach.

What the Law Change Means
Under Luxembourg’s golden visa program, investors could choose between four pathways, ranging from €500,000 in a business investment to a €20 million bank deposit. Successful applicants were granted a renewable three-year residence permit and became eligible for citizenship after five years of residency.

The legislative process to repeal the scheme is now underway. Parliament will assign the bill to a committee, where deputies will examine the text in detail before presenting conclusions. The Chamber of Deputies will then debate and vote, followed by a review from the Council of State. If changes are recommended, a second vote will be required before the law is sent to the Grand Duke for final approval.
Although the golden visa is being phased out, the government emphasized that non-EU nationals can still apply for traditional self-employed residence permits when setting up businesses in Luxembourg.

A Program That Never Delivered
When the European Commission reviewed Luxembourg’s scheme back in 2018, it flagged transparency gaps, noting the lack of limits on applications, the absence of public disclosure of successful applicants, and no clear system to measure economic impact. Oversight was described as minimal, with little parliamentary or independent scrutiny.
Those warnings, combined with the program’s weak results, now appear to have sealed its fate. As Luxembourg joins its EU neighbors in closing the door on golden visas, the government insists its focus will shift to more traditional and transparent pathways for attracting investment.
Read More : Luxembourg Prepares to Axe Golden Visa Program That Approved Only 9 Applicants - IMI Daily

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