Luxembourg has recently published a new law, showing quick work
in adapting to the EU's immigration law legal framework. The
new law is characteristic of a government that wishes to attract
foreign investors and, specifically, high net-worth investors
Previously, the criteria and conditions for residence permits
were, at points, unclear or ambiguous, and did not always put clear
investment thresholds for applicants to meet. With the new law,
these cobwebs will be cleaned out and replaced by unambiguous
language. It introduces residence permits for those who:
invest at least €500,000 in an existing enterprise that
has its legal seat in the Grand Duchy and that performs commercial,
artisanal, or industrial activities; the investor must also commit
to maintaining the same level of investment and employment for at
least five years
invest at least €500,000 in a newly established enterprise
that has its legal seat in the Grand Duchy and that performs
commercial, artisanal, or industrial activities; the investor must
also commit to hiring at least five employees (in collaboration
with ADEM) within a three year period following the creation of the
invest at least €3 million in a financial/management
structure that already exists or is going to be created with its
legal seat in the Grand Duchy, and that meets Luxembourg's
invest €20 million in the form of a deposit in a financial
institution established in the Grand duchy; the investor must also
commit to maintaining that investment for at least five years
The residence permit is granted for a period of three years and
is subject to further extension.
Opening the gates for HNWIs is meant to help maintain
Luxembourg's attractiveness at an international level, while
developing and diversifying its economy. With this law, Luxembourg
aims to become a leader in an environment marked by competitiveness
and by interdependence amongst national economies.
The new law is expected to usher in qualified investors,
naturally with their families in tow—leading to the need for
further development of national infrastructure: universities,
nurseries, and so on. The influx should create local jobs to
accommodate a growing country with more demands.
We can assume that the main populations targeted by the new law
are largely investors and entrepreneurs from the likes of India,
Russia, China, and Brazil. Investors from the Middle East must also
be mentioned, although many have not waited for such new provisions
before investing in Luxembourg's financial and banking sector
(e.g. BIL and KBL) or aviation sector (e.g. Cargolux), all of which
currently operate under the leadership of investors from this
Many national chambers and organisations have shown interest in
the new law too, which is why KPMG recently teamed up with the
Indian Business Chamber of Luxembourg to host an informative event
on the new residence permits. After speaking to different
stakeholders and delegates, we are more confident than ever that
interest in Luxembourg's economy—and its
sustainability—is still growing worldwide. It has become a
much easier and clearer-cut process for foreign investors to invest
in, and move to, the Grand Duchy, whether they are interested in
wider European development or even international development.
A big splash
The existing tax law in Luxembourg already offers certain
advantages that shall remain unchanged. For example, some specific
regimes for new resident individuals, which offer a final tax of
20% on certain savings income, shall remain, as well as possible
exemptions from long-term capital gains, exemptions of 50% on
certain dividends, and the absence of wealth tax on natural
These already-existing advantages, coupled with the new law,
create a Luxembourg that will be very attractive for foreign
investors. Two final points for the opportune would be the mention
that Luxembourg's relatively lenient succession rights regime
remains intact, and that tax deductions on eligible philanthropic
donations are also still enticing.
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The conference will centre on the new tax normal, full transparency, and specifically the role of private bankers in this new age. Originally perceived as a threat to existing business models, full tax transparency may actually hold new opportunities for private bankers.
ICT Spring is a global technology conference that welcomes various international professionals from the technology space. It is a two-day yearly event which is held in Luxembourg City, “at the heart of Europe, and offers the participants a unique opportunity to deepen their digital knowledge, capture the value of the fast-growing FinTech industry, and explore the impact of space technologies on terrestrial businesses, through exhibitions and demonstrations of the latest tech trends and innovations. ICT Spring is also the perfect place to network with peers and future business partners”.
ICT Spring is a global technology conference that welcomes various international professionals from the technology space. It is a two-day yearly event which is held in Luxembourg City, “at the heart of Europe, and offers the participants a unique opportunity to deepen their digital knowledge, capture the value of the fast-growing FinTech industry, and explore the impact of space technologies on terrestrial businesses, through exhibitions and demonstrations of the latest tech trends and innovations.”
Seconding employees into the UAE and Qatar to perform work for local entities continues to be a hot topic.
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