An IMGW News Report
Luxembourg is reassessing its Golden Visa scheme, which could result in its termination, a spokesperson from the Ministry of Home Affairs told the Luxembourg Times.
The programme grants wealthy non-EU nationals residency and visa-free access across the EU through two main routes:
- Investing €500,000 via the Residence by Investment scheme.
- Demonstrating an annual income of at least €27,000 under the Residence for Private Reasons scheme.
Minimal Uptake and Residency Conditions
Despite its availability, the scheme has struggled to attract applicants. In 2023 and 2024, only six applications were submitted, four of which were rejected. Applicants came from Russia, Israel, India, and China, but authorities did not disclose which were refused or why.
Successful applicants initially receive a temporary five-year permit, which converts to a valid residence permit upon arrival. Residence by Investment permits grant three years of residency, while private reasons permits last just one year.
The scheme has seen minimal interest since its launch. A 2018 European Commission report found that in its first year, only six individuals—one Australian and five Chinese nationals—secured residency. By 2023, just three more had been approved. Yet, as recently as last year, the Luxembourg government stated that scrapping the programme was not a priority.
EU Pressures for Abolition
While Golden Visa schemes bring economic benefits, the EU has ramped up pressure on member states to phase them out, citing security risks and potential misuse.
Spain will scrap its Golden Visa programme by 3 April 2025, citing concerns over its effect on housing affordability. Portugal has already removed the real estate investment route, which previously allowed residency through property purchases worth €500,000 or more.
Luxembourg’s review aligns with broader EU efforts to dismantle such schemes, making its eventual discontinuation increasingly likely.
