Luxembourg to End Investor Residence Program

Luxembourg's Home Affairs Ministry has initiated a review to terminate its investor residence program, marking a shift from its previous position in April 2023.

The program, which launched in 2017, has attracted minimal interest with only 15 total applications over seven years.

Program Performance Declines

The program's performance has been notably weak in recent years. Of six applications received from Russian, Israeli, Indian, and Chinese investors in 2023-24, the government rejected four.

The program's early years saw modest success with approvals for one Australian and five Chinese investors in its first year, followed by just three more approvals between 2018 and 2023.

European Commission's Influence

This decision aligns with a broader European trend, as the European Commission has increased pressure on EU nations to close investment migration programs, citing security and financial risks. The Commission previously highlighted several deficiencies in Luxembourg's program, including the absence of application caps and insufficient monitoring systems.

Key Statistics

• Total applications since 2017: 15
• Recent rejection rate: 4 out of 6 applications (2023-24)
• Investment options: €500,000 to €20 million
• Citizenship eligibility: Requires 5 years of residence

Following European Neighbors and Termination Process

Luxembourg follows other European nations in this direction, with the Netherlands recently ending its program after only ten successful applications in a decade, Ireland discontinuing its program in 2023, and Spain planning to close its golden visa program in April.

The termination process will require parliamentary action to modify immigration laws, though no specific timeline has been announced for the program's closure or for addressing current permit holders' status.