Luxembourg Removes Golden Visa Option Following Poor Demand

Luxembourg’s golden visa scheme, once seen as a pathway for wealthy non-EU nationals to secure residency, is now on its way out. The program allowed foreign investors to gain residency rights in Luxembourg if they invested at least €500,000 in a local business. However, a new draft law presented to parliament by Home Affairs Minister Léon Gloden proposes scrapping the scheme altogether.

Why Is It Being Scrapped?

The golden visa program was introduced in 2017 with the hope of attracting international investors, boosting the economy, and creating new business opportunities in Luxembourg. But over time, it became clear that the scheme was not delivering the results the government had expected.

According to official records, the visa created more administrative burden than economic benefit. Since its launch, only nine people have actually obtained residency through this route, and most of them applied in the early years of the program. This very small number was disappointing for a scheme that required significant resources to monitor and manage.

In recent years, interest has declined even further. Between 2023 and 2024, only six applications were submitted, and four of them were rejected. The draft bill argues that the scheme “has not had the desired positive effect” and also raised concerns about how difficult it was to check whether applicants were truly following the investment rules.

What Will Replace It?

Although the golden visa scheme is set to close, Luxembourg is not shutting its doors to foreign investors entirely. Instead, international applicants will still be able to seek residency through the traditional self-employed route.

This option allows foreigners to invest money into Luxembourgish businesses, but with one important condition: they must actively manage the company themselves. In other words, passive investment—where money is simply put into a business without involvement—is not enough to qualify for residency. The government also made it clear that investing in property does not count as an eligible form of investment, whether under the golden visa scheme or the self-employed route.

The Bigger European Picture

Luxembourg’s decision follows a broader trend across Europe. Countries such as Portugal and Ireland have already shut down their golden visa schemes in recent years. These programs faced criticism for encouraging passive investment and inflating property markets without creating meaningful economic or social benefits.

By ending the scheme, Luxembourg is signaling that it prefers to attract investors who are genuinely committed to contributing to its economy, rather than those looking for a quick way to secure residency.

READ MORE: Azerbaijan Visit Visa Fees, Process, and Travel Guide for Pakistanis