Application for an opinion on an investment project in the context of an application for an investor residence permit - Ministry of Finance component

Last update 14.01.2019

The introduction of a residence permit for investors is part of the policy of diversifying Luxembourg's economy, encouraging entrepreneurship and developing the financial centre.

This initiative therefore aims to attract new high quality investors who are willing to invest, for example, in the takeover or creation of businesses, or family office structures, or who wish to manage their assets from Luxembourg.

This residence permit is subject to the condition that the applicant carries out an investment project.

Before submitting an application for an investor residence permit to the Immigration Directorate of the Ministry of Foreign and European Affairs, the applicant must first obtain a favourable opinion concerning their investment project from:

  • either the Ministry of the Economy (in the case of an investment in an existing business or the creation of a new business);
  • or the Ministry of Finance (in the case of an investment in an investment structure or in the form of a deposit with a financial institution).

This procedure only applies to investment projects to be approved by the Ministry of Finance.  

Who is concerned

Each third-country national who wishes to obtain an investor residence permit can request an opinion from the Ministry of Finance if they have opted for one of the following investment projects:

  • investing at least EUR 3,000,000 in an existing or new investment and management structure, which will have its registered office in Luxembourg together with an appropriate structure; or
  • investing at least EUR 20,000,000 in the form of a deposit with a financial institution established in Luxembourg and committing to maintain this investment for a period of at least 5 years.

Investments which primarily involve the purchase and lease of real estate are excluded from this procedure.

Prerequisites

For an investment in an investment structure

Theinvestment structure must:

  • be domiciled in Luxembourg;
  • have an appropriate structure in Luxembourg with regard to its activity, business premises, technical, human and financial resources, and contractual relations;
  • employ least 2 full-time employees who are not the beneficial owners;
  • feature appropriate governance and internal control mechanisms.

In addition, the funds contributed must:

  • be provided by either the applicant or by another investment structure of which they are the beneficial owner;
  • consist of at least 75 % equity (i.e. no more than 25% borrowed funds);
  • be of an amount higher than or equal to EUR 3,000,000 included in the balance sheet of the investment structure.

All funds managed by the investment structure must be deposited in Luxembourg.

The beneficial owner of the investment structure must also be either the applicant for the investor residence permit, or their spouse or legal partner.

Finally, the activity of the investment structure must not have as its main objective a direct or indirect real estate object.

For an investment in the form of a deposit with a financial institution

The applicant must commit to maintain their investment in a bank account with a single financial institution domiciled in Luxembourg, for a period of at least 5 years.

The invested funds must:

  • be of an amount higher than or equal to EUR 20,000,000;
  • be provided by either the applicant or by another investment structure of which they are the beneficial owner;
  • consist of 100% equity (i.e. no borrowed funds). They can however consist of cash (euros or foreign currencies) or financial instruments;
  • be free from any liens, pledges, collaterals, mortgages, or other security of any nature whatsoever and restricting the applicant's full ownership.

In addition, the beneficial owner of the amount invested must be either the applicant for the investor residence permit, or their spouse or legal partner.

Finally, the funds must not have as their main objective a direct or indirect real estate object.

How to proceed

Filing an application

The applicant submits the application file to the Ministry of Finance by email.

The documentation is to be sent as a single file in PDF format.

Before sending the file to the Ministry, the applicant is required to take note of the declaration of confidentiality concerning the processing of personal data as part of this procedure.

Supporting documents

The applicant's file must include the following supporting documents in order for the conditions inherent to the chosen investment project to be verified.

Please note that the Ministry of Finance reserves the right to request any additional documents useful or necessary for the analysis of the file and the verification of compliance with the legal conditions.

For an investment in an investment structure

The application form for an opinion on the investment project must be duly completed and accompanied by:

  • a copy of the applicant's identity document;
  • the statutes of the investment structure;
  • the audited financial statements (balance sheet, profit and loss account, allocation of shareholders' equity by shareholders or associates, including any possible appendices);
  • a bank account identification document of the investment structure's Luxembourg bank account;
  • proof of the origin of the funds;
  • a declaration of the beneficial owner(s);
  • the duly completed declaration of honour form;
  • a business plan, including, as the case may be:
    • a description of the activities of the investment structure;
    • a document describing governance and internal control mechanisms;
    • an analysis of financial and equipment needs;
    • a human resources plan, with the corresponding employment contracts.

For an investment in the form of a deposit with a financial institution

The application form for an opinion on the investment project must be duly completed and accompanied by:

  • a copy of the applicant's identity document;
  • a bank account identification document of the Luxembourg bank account;
  • a recent account statement of the Luxembourg bank account;
  • a declaration of the beneficial owner(s);
  • proof of the origin of the funds;
  • the duly completed declaration of honour form;          

Processing of the request by the administration

The opinion on the investment project, which is sent by post by the Ministry of Finance to both the applicant and the Ministry of Foreign and European Affairs, can take 2 forms:

  • a favourable opinion: this type of opinion is issued when the investment project meets the prerequisites;
  • an unfavourable opinion: this type of notice is issued when the investment project does not meet the prerequisites and/or when the applicant has not submitted a complete file.   

In the event that the applicant has not yet been able to provide all the required documents, they must provide substantiated reasons to the Ministry of Finance, which may decide, on a discretionary basis, to grant them the benefit of a derogatory procedure.

Derogatory procedure:

In the event that the applicant benefits from a derogatory procedure, they will have to provide the Ministry of Finance with a provisional investment plan which must indicate the measures that will be taken to fulfil the criteria necessary for the chosen investment project.

On the basis of this provisional plan, the Ministry may issue a conditional favourable opinion which is valid for 90 days (validity of the temporary residence permit).

The applicant has 90 days to provide the necessary supporting documents for their investment project. Should the applicant be unable to provide the documents within this period, the application for an investor residence permit will be refused.

Obtaining a favorable opinion from the Ministry of Finance does not exempt the applicant from complying with all the other conditions provided for by law.

Validity period

The opinion issued by the Ministry of Finance is valid for one year.

The investor residence permit is linked to an annual monitoring of the investment project for the entire period of validity of the residence permit.

Compliance with the investment commitments made (e.g.: the maintenance or creation of employment, the appropriate substance or the investment over a certain period of time) will be verified no later than 12 months after the issue of the investor residence permit.

Obligations

Applicants who have opted for a particular investment project, and who have received a favourable opinion from the Ministry of Finance with respect to this project, cannot reconsider their decision and will have to maintain the same type of investment during the entire period of validity of the investor residence permit.

Applicants are however free to manage their portfolio dynamically and may vary the underlying assets of their investment project, as long as it continues to comply with the conditions applicable to it.

Review of the file

Annual investment project audit procedure

No later than 3 months before the anniversary date of the granting of the residence permit for investors, the Ministry of Finance communicates to the investor, by postal mail, that they will undertake the annual audit of the investment project.

The investor must therefore submit a file to the Ministry of Finance which contains:

  • the duly completed annual audit form;
  • all supporting documents which enable the verification of the conditions inherent to the investment project (see the heading "Supporting Documents").  

The investor must send the file within the deadline indicated in the notification letter from the Ministry of Finance.

The opinion on the annual audit will be sent by the Ministry of Finance to the applicant and to the Immigration Directorate at the Ministry of Foreign and European Affairs by post. It can take 3 forms:

  • a favourable opinion: this type of opinion is issued when the investment project meets the prerequisites;
  • a conditional favourable opinion: when the file submitted during the annual audit does not make it possible to verify compliance with all the conditions, the Ministry of Finance may, at its discretion, issue a conditional favourable opinion. The Ministry of Finance will then require the applicant to provide additional supporting documents or information, which must be provided within the time limit granted by the Ministry. This period can be up to 1 year (until the next annual audit of the investment project). If the applicant does not provide proof that the conditions laid down for his investment project have been met, the Ministry of Finance will issue an unfavourable opinion and recommend to the Immigration Directorate of the Ministry of Foreign and European Affairs to withdraw the investor residence permit;
  • an unfavourable opinion: this type of opinion is issued when the investment project does not meet the prerequisites and/or when the applicant has not submitted a complete file and/or has failed to meet the deadline. An unfavourable opinion will result in the withdrawal of the investor residence permit.

Additional condition for investments in the form of a deposit with a financial institution

For all investments in the form of a deposit the Ministry of Finance checks that the minimum investment threshold is respected on the basis of the monthly average balance, the net asset value or the stock market value of the investment in question.

This average amount, which must be greater than or equal to EUR 20,000,000, is calculated on the basis of the balances, net asset values or stock market values available on the first working day of each month, from the date on which the residence permit is obtained until the date of the annual audit.

The applicant is therefore required toprovide the corresponding account statements covering the previous year, so that the Ministry of Finance can verify this condition.

Forms / Online services

Demande d'obtention d'un avis sur un projet d'investissement - Titre de séjour pour investisseurs

Les informations qui vous concernent recueillies sur ce formulaire font l’objet d’un traitement par l’administration concernée afin de mener à bien votre demande.

Ces informations sont conservées pour la durée nécessaire par l’administration à la réalisation de la finalité du traitement

Les destinataires de vos données sont les administrations compétentes dans le cadre du traitement de votre demande. Veuillez-vous adresser à l’administration concernée par votre demande pour connaître les destinataires des données figurant sur ce formulaire. Conformément au règlement (UE) 2016/679 relatif à la protection des personnes physiques à l'égard du traitement des données à caractère personnel et à la libre circulation de ces données, vous bénéficiez d’un droit d’accès, de rectification et le cas échéant d’effacement des informations vous concernant. Vous disposez également du droit de retirer votre consentement à tout moment.

En outre et excepté le cas où le traitement de vos données présente un caractère obligatoire, vous pouvez, pour des motifs légitimes, vous y opposer.

Si vous souhaitez exercer ces droits et/ou obtenir communication de vos informations, veuillez-vous adresser à l’administration concernée suivant les coordonnées indiquées dans le formulaire. Vous avez également la possibilité d’introduire une réclamation auprès de la Commission nationale pour la protection des données ayant son siège à 1 Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

En poursuivant votre démarche, vous acceptez que vos données personnelles soient traitées dans le cadre de votre demande.

Attestation sur l’honneur - Titre de séjour pour investisseur

Les informations qui vous concernent recueillies sur ce formulaire font l’objet d’un traitement par l’administration concernée afin de mener à bien votre demande.

Ces informations sont conservées pour la durée nécessaire par l’administration à la réalisation de la finalité du traitement

Les destinataires de vos données sont les administrations compétentes dans le cadre du traitement de votre demande. Veuillez-vous adresser à l’administration concernée par votre demande pour connaître les destinataires des données figurant sur ce formulaire. Conformément au règlement (UE) 2016/679 relatif à la protection des personnes physiques à l'égard du traitement des données à caractère personnel et à la libre circulation de ces données, vous bénéficiez d’un droit d’accès, de rectification et le cas échéant d’effacement des informations vous concernant. Vous disposez également du droit de retirer votre consentement à tout moment.

En outre et excepté le cas où le traitement de vos données présente un caractère obligatoire, vous pouvez, pour des motifs légitimes, vous y opposer.

Si vous souhaitez exercer ces droits et/ou obtenir communication de vos informations, veuillez-vous adresser à l’administration concernée suivant les coordonnées indiquées dans le formulaire. Vous avez également la possibilité d’introduire une réclamation auprès de la Commission nationale pour la protection des données ayant son siège à 1 Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

En poursuivant votre démarche, vous acceptez que vos données personnelles soient traitées dans le cadre de votre demande.

Vérification annuelle d'un projet d'investissement - Titre de séjour pour investisseurs

Les informations qui vous concernent recueillies sur ce formulaire font l’objet d’un traitement par l’administration concernée afin de mener à bien votre demande.

Ces informations sont conservées pour la durée nécessaire par l’administration à la réalisation de la finalité du traitement

Les destinataires de vos données sont les administrations compétentes dans le cadre du traitement de votre demande. Veuillez-vous adresser à l’administration concernée par votre demande pour connaître les destinataires des données figurant sur ce formulaire. Conformément au règlement (UE) 2016/679 relatif à la protection des personnes physiques à l'égard du traitement des données à caractère personnel et à la libre circulation de ces données, vous bénéficiez d’un droit d’accès, de rectification et le cas échéant d’effacement des informations vous concernant. Vous disposez également du droit de retirer votre consentement à tout moment.

En outre et excepté le cas où le traitement de vos données présente un caractère obligatoire, vous pouvez, pour des motifs légitimes, vous y opposer.

Si vous souhaitez exercer ces droits et/ou obtenir communication de vos informations, veuillez-vous adresser à l’administration concernée suivant les coordonnées indiquées dans le formulaire. Vous avez également la possibilité d’introduire une réclamation auprès de la Commission nationale pour la protection des données ayant son siège à 1 Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

En poursuivant votre démarche, vous acceptez que vos données personnelles soient traitées dans le cadre de votre demande.

Who to contact

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