Best Residence by Investment Lawyers in Diekirch

About Residence by Investment Law in Diekirch, Luxembourg

Luxembourg offers a residence by investment route under national immigration law that allows certain non EU and non EEA nationals to obtain a residence permit by making a qualifying investment in Luxembourg. Although the law is national, you will complete important registration steps with your local commune if you choose to live in Diekirch. The investor permit is designed to attract responsible foreign capital that supports the Luxembourg economy through business development, job creation, or substantial financial deposits with Luxembourg institutions.

Common qualifying paths include investing in an existing Luxembourg company, creating a new company in Luxembourg that generates jobs, investing in an approved investment or management structure established in Luxembourg, or placing a significant deposit with a Luxembourg financial institution for a minimum holding period. Approval is two stage. First, the investment project must be cleared by the competent ministry. Second, you must obtain an authorization to stay from the immigration authority, followed by the residence permit after arrival and local registration.

The investor residence permit is generally issued for multiple years and can be renewed if you continue to meet the legal requirements. It can cover eligible family members under family reunification rules. Over time, lawful residence may open paths to long term residence or naturalization, subject to separate conditions such as language and integration requirements.

Why You May Need a Lawyer

Residence by investment is document heavy, compliance focused, and time sensitive. A lawyer can help you navigate the substantive and procedural rules while avoiding common pitfalls. Situations where legal help is especially valuable include:

- Choosing the most suitable investment category and structuring the investment in a compliant way that aligns with your personal goals and risk profile.

- Preparing a compliant business plan and corporate documentation for new or existing Luxembourg companies, including governance, capitalization, and employment commitments.

- Demonstrating the lawful origin of funds and meeting anti money laundering and know your customer checks, which are strictly enforced by banks and authorities.

- Coordinating with the competent ministry for pre approval of the investment project, and with the immigration directorate for the authorization to stay and the residence card.

- Managing timelines for visas, arrival, local commune registrations in Diekirch, medical examinations, and residence card biometrics, especially when family members are included.

- Addressing tax planning, social security, and cross border considerations to avoid unintended tax residence or reporting issues in multiple jurisdictions.

- Handling renewals, inspections, changes in corporate structure, or unforeseen events such as project delays, job creation shortfalls, or long absences from Luxembourg.

Local Laws Overview

Residence by investment in Luxembourg is governed by national law on the free movement of persons and immigration. Key features that are particularly relevant to someone living in Diekirch include:

- Investment categories and thresholds. Typical routes include one of the following, subject to official confirmation on current thresholds and criteria. Invest at least EUR 500,000 in an existing Luxembourg company and maintain the investment and employment level for a set period. Invest at least EUR 500,000 in a new Luxembourg company that creates a set number of jobs within the first years of activity and maintains them. Invest at least EUR 3,000,000 in an existing or newly created investment or management structure established in Luxembourg. Deposit at least EUR 20,000,000 in a Luxembourg financial institution and maintain the deposit for a minimum holding period. Authorities may update amounts or conditions, so professional verification is essential.

- Pre approval and authorization to stay. Before applying for the residence permit, the investment project is assessed by the competent ministry. Corporate investment cases are typically handled by the Ministry of the Economy. Financial deposit cases are typically handled by the Ministry of Finance. After project approval, you apply to the Immigration Directorate of the Ministry of Foreign and European Affairs for an authorization to stay. If you require a visa to enter Luxembourg, you will then apply for a type D visa.

- Arrival and local registration in Diekirch. After entry, third country nationals must make a declaration of arrival with the Diekirch commune within a short time frame, generally three working days. You will undergo a medical examination organized by the Health Directorate. You must then submit biometrics and finalize your residence permit application within the legal deadline, generally within 90 days of arrival. The commune will request proof of address, such as a lease, deed, or an attestation of accommodation.

- Validity and renewal. The investor residence permit is typically issued for several years, often three years for the initial card, and is renewable if you continue to satisfy the investment and presence requirements. You must keep the qualifying investment in place for the required duration and comply with any job creation or maintenance commitments.

- Work and business activity. The investor permit is intended to allow you to carry out and manage the qualifying investment. If you plan to take up salaried employment outside the investment project, a change of status or additional authorization may be required.

- Family reunification. Spouses or partners, minor children, and in some cases dependent adult children can often join under family reunification rules, subject to housing, income, and insurance requirements. Family members must also register with the Diekirch commune after arrival.

- Taxes and social security. Becoming a resident in Diekirch can affect your tax residence. Luxembourg taxes residents on worldwide income. Corporate entities may be subject to corporate income tax, municipal business tax, and net wealth tax. Individuals are not subject to individual net wealth tax, but may be subject to a solidarity surcharge. Municipal business tax rates vary by commune. Registration with the Joint Social Security Centre may be needed if you are a company director with remuneration or if you employ staff. Cross border planning is recommended.

- Compliance and audits. Authorities and banks will verify the lawful origin of funds, the reality of business activity, and the ongoing satisfaction of investment and employment commitments. Records should be kept for all transfers, contracts, payroll, and filings. Non compliance can lead to refusal, non renewal, or withdrawal of the permit.

Frequently Asked Questions

What investment options qualify for the investor residence permit in Luxembourg

Common options include investing a minimum set amount in an existing Luxembourg company with a commitment to maintain employment, investing in a new company that creates and maintains a minimum number of jobs, investing in an approved Luxembourg based investment or management structure, or maintaining a substantial term deposit with a Luxembourg financial institution. Thresholds such as EUR 500,000, EUR 3,000,000, and EUR 20,000,000 are often cited, but you should confirm current figures and conditions before proceeding.

Can I qualify by buying residential real estate in Diekirch

Purchasing residential property alone does not usually qualify under the investor category. The program focuses on business investment, job creation, investment structures, or bank deposits. Property can be part of a broader compliant corporate activity or fund strategy, but a simple home purchase does not meet the investor criteria.

How long does the process take from start to residence card

Time frames vary. Project pre approval and the authorization to stay can take several weeks to a few months depending on completeness and complexity. After arrival in Luxembourg, you must complete the commune registration in Diekirch, medical checks, and biometrics before the residence card is issued. End to end, many applicants plan for several months. Careful preparation can reduce delays.

Do I need to live full time in Luxembourg to keep the permit

You must genuinely reside in Luxembourg and maintain the qualifying investment. Long absences or making another country your primary residence can jeopardize renewal. For long term residence or naturalization, there are specific continuous residence rules and permitted absence limits. Keep travel records and consult counsel about your personal travel pattern.

Can my family members join me under this route

Yes, eligible family members such as a spouse or registered partner and minor children can usually join under family reunification. You must show adequate housing, stable resources, and health insurance. Family members must also register with the Diekirch commune after arrival and follow the same residence card process.

What documents are typically required

Expect to provide a valid passport, criminal record certificates, proof of lawful origin of funds, detailed business plan and financials for company investments, evidence of bank deposit or investment structure approvals, proof of accommodation in Diekirch, comprehensive health insurance, and civil status documents for family members. Foreign documents often need apostille or legalization and sworn translations into French, German, or English.

Is there a language requirement for the investor residence permit

No language test is required for the initial investor residence permit. If you later apply for Luxembourg citizenship, language and civic integration requirements apply, including a Luxembourgish language test and completion of a civic instruction course or examination.

What are my tax obligations if I become resident in Diekirch

Tax residence generally results in taxation on worldwide income in Luxembourg. You will file annual personal income tax returns and may have to make advance payments. If you operate or own a company, corporate taxes and municipal business tax may apply, and employer obligations arise if you hire staff. Double tax treaties and foreign reporting rules can affect your situation, so obtain tailored tax advice early.

Can I work as an employee in another company while holding an investor permit

The investor permit is intended for carrying out and managing the qualifying investment. Taking up paid employment outside that scope may require a change of status or a separate authorization. Plan ahead if you intend to accept salaried work in addition to your investment activities.

What happens if I cannot meet the job creation or holding period commitments

Failure to meet commitments can lead to refusal of renewal or withdrawal of the permit. If difficulties arise, seek legal advice immediately. In some cases, corrective measures or a duly justified modification of the project may be possible, but there is no automatic leniency. Communication with the competent ministry and the immigration authority must be precise and timely.

Additional Resources

- Directorate of Immigration at the Ministry of Foreign and European Affairs. The authority responsible for authorizations to stay, visas, and residence permit cards.

- Ministry of the Economy. Handles approvals for investments in operating companies and new business projects, including job creation commitments.

- Ministry of Finance. Handles approvals for bank deposit based investments and investment or management structures.

- Commune of Diekirch, Service Population and Bureau des Etrangers. Local office for declaration of arrival, residence registration, and related certificates.

- Health Directorate, Medical Inspection Service. Conducts the mandatory medical examination for third country nationals.

- Luxembourg Business Registers and the Trade and Companies Register. For company incorporation, filings, and corporate compliance.

- Chamber of Commerce and House of Entrepreneurship. Support for business plans, permits, and local market entry.

- Commission de Surveillance du Secteur Financier. Regulator for investment and financial sector structures.

- Luxembourg Bankers Association. Guidance on banking, due diligence, and account opening standards.

- Guichet.lu, the central government information portal. A practical reference for procedures, forms, and checklists across ministries.

Next Steps

- Confirm eligibility and choose a route. Assess whether you will invest in an existing company, create a new company with job creation, invest in an investment or management structure, or place a qualifying bank deposit. Align the choice with your timeline, risk tolerance, and family plans.

- Engage professional advisors. Retain a Luxembourg qualified immigration lawyer and, where relevant, a corporate lawyer, tax advisor, and a notary. Early coordination reduces costly changes later.

- Prepare the investment dossier. Compile a robust business plan, financial projections, corporate documents, draft employment plan, and evidence of funds. For deposit or fund options, secure preliminary agreement from a Luxembourg financial institution or structure and be prepared for stringent due diligence.

- Obtain project pre approval. Submit the investment project to the competent ministry for approval. Respond promptly to information requests and keep records of all communications.

- Apply for authorization to stay. File with the Immigration Directorate once the project is approved. If you need a visa to enter Luxembourg, apply for a type D visa after receiving the authorization.

- Arrive and register in Diekirch. Within the legal deadline after arrival, declare your presence at the Diekirch commune, complete the medical examination, submit biometrics, and finalize the residence permit application. Keep copies and receipts for all filings.

- Set up local life and compliance. Open bank accounts, register with tax and social security where required, secure health insurance, sign a lease or complete a property purchase, and enroll children in school if applicable.

- Monitor obligations and renewal. Maintain the qualifying investment, meet job creation and maintenance targets, and keep documentary evidence. Track permit expiry, family member renewals, and report material changes to the authorities without delay.

This guide provides general information to help you get oriented. Because laws and practices change and every case is unique, consult a qualified Luxembourg lawyer for tailored advice before you commit funds or submit applications.