Residence permit: Luxembourg transposed the legal framework of EU directives 2014/36/EU and 2014/66/EU
Luxembourg has transposed the legal framework of EU directives 2014/36/EU and 2014/66/EU. With a new law published, Memorial A, on 20 March 2017, Luxembourg intends to open a gateway for investors.
Indeed, this law foresees five new types of residence permits, amongst which is a residence permit dedicated to third-country high-net-worth (HNW) investors.
With this new law, it becomes apparent that Luxembourg wishes to equip itself with additional arguments to attract target HNW investors to Luxembourg to further develop and diversify its economy, although clear investment thresholds do have to be met.
Additionally, the law offers important clarifications. In order to be eligible for one of the residence permits, investors will have to select the most relevant permit and meet one of the following conditions:
The residence permit is granted for a period of three years and can be extended.
This exclusive permit helps promote Luxembourg as a destination of choice. Indeed, on the one hand this new law will make it possible to showcase and develop the existing structures and the attractive environment implemented by Luxembourg. On the other hand, the arrival of such investors and their families will lead to the development of national infrastructure, such as universities, nurseries, etc. This will have the additional effect of creating local jobs to accompany the growth of a population that demands tailor-made services.
Regarding the measures put in place through this law, we can assume that new investors and entrepreneurs from third countries such as the BRIC countries will be the main population targeted. It is important to mention investors from the Middle East as well, although some of them have not waited for such a new provision before investing in the Luxembourgish financial sector.
It goes without saying that the sustainability of and the interest in the Luxembourg economy are, and will keep, growing internationally. It is now much clearer and easier for foreign investors not only to make financial investments, but also to join the Grand Duchy of Luxembourg with the aim to pursue their European development and their need for diversification, in and from Luxembourg.
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