If you are a third-country national who wants to live in Luxembourg for personal reasons, you should be aware of the new law that came into force on 12 May 2023.
The law of 21 April 2023_ modifying the amended law of 29 August 2008 on the free movement of persons and immigration was published on 8 May 2023 in Mémorial A 228 (Luxembourg Official Journal) (the “Law”).
The Law introduces several changes to the immigration regime in Luxembourg, such as a new structure for deportation measures and a modified detention regime for unauthorized residents. However, one of the most noticeable changes is the tightening of the conditions for grant of a residence permit for personal reasons.
What are the new conditions for a residence permit for personal reasons?
Previously, it was sufficient for an applicant to prove that they had sufficient resources and did not pose a threat to public order, health or safety in order to obtain a residence permit for personal reasons.
However, this is no longer the case.
From 12 May 2023, an applicant for a residence permit for personal reasons must prove that they have a link with Luxembourg or with an EU or Schengen Area country. This may be because they are already living in Luxembourg as a result of family reunification, because they have strong and lasting personal or family ties with the person(s) they wish to join in Luxembourg, or because of the source of their financial resources.
What are the acceptable sources of financial resources?
An applicant for a residence permit for personal reasons must be able to support themselves using “their own resources”. The Law now expressly states that these resources may only derive from:
a professional activity carried out in another EU or Schengen Area member state; or
a retirement, disability or survivors’ pension paid by a Luxembourg social security institution or equivalent in another EU or Schengen Area member state.
It will now be harder for third-country nationals with no links to Luxembourg or the EU (in the broadest sense) to obtain a residence permit for personal reasons, despite having proof of sufficient resources.
What are the alternatives to a residence permit for personal reasons?
If an applicant does not meet the new criteria laid down by the Law, they may have to apply for a different type of residence permit. For third-country nationals with sufficient resources, the residence permit for investors will be a preferred alternative to the residence permit for personal reasons, provided they meet the conditions for obtaining the investors’ residence permit.
The residence permit for investors allows third-country nationals who make significant investments in Luxembourg to reside in the country for an initial period of three years, renewable under certain conditions. The investments can be made in one or more of the following categories:
an investment of at least EUR 500,000 in an existing company with its registered office in Luxembourg and which carries out commercial, artisanal or industrial activities;
an investment of at least EUR 500,000 in a new company with its registered office in Luxembourg and which will carry out commercial, artisanal or industrial activities and which will create at least five jobs within three years;
an investment of at least EUR 3 million in an existing or new management and investment structure with its registered office in Luxembourg;
an investment of at least EUR 20 million by way of deposit with a financial institution established in Luxembourg and maintained for at least five years.
The residence permit for investors also requires that the applicants have sufficient resources and health insurance coverage and do not pose a threat to public order, health or safety.
How can I apply for a residence permit?
If you are interested in applying for a residence permit in Luxembourg, you can contact us for more info on : info@luxrelo.lu so that we can advise you on the best option for your situation and assist you with the application process.
We hope this blog post helps you understand the new Luxembourg law and its implications for residence permits for personal reasons. If you have any questions or feedback, please leave them in the comments section below.