More and more expats these past few years, especially after the pandemic, have the dream of opening their own business, in a field they love, focused on a product they are interested in, and not only in their own countries, but abroad, with better terms and advantages as business owners. If you are a foreigner thinking of opening a business in Luxembourg, this article might help you get started.
Why Luxembourg?
Luxembourg hosts a big number of businesses and organizations, plus it is an international work environment, since it is geographically in the very center of Europe, which leads both local and foreign businesses to success. Among other facilitations, Luxembourg offers double taxation agreements with over 80 countries all over the world, which puts the country on the top as a great choice for startups and company merging.
Besides the economic and financial attractiveness of Luxembourg, and even though it is fairly easy to open a business in the country as a resident but also as a non-resident, we will look into how expats can easily open a new business in the country. The first thing you would want to look into is if you and your company are eligible, but then, there are also specific considerations for foreigners, which we will look into more specifically.
Eligibility for opening a new business in Luxembourg as a foreigner
At the moment, almost 143000 businesses are registered in Luxembourg, with the top industries being real estate, finance and insurance, followed by retail and other services. For locals, including EU citizens, the necessary documentation is fairly self-explanatory, but for foreigners, a resident permit is needed. The next step would be business permit and registration, but before that let’s take a look at the business idea and structure needed to begin.
Things you need to consider about opening a business in Luxembourg
Here is a list of the steps you need to take to open a business, and after that we will present the specific considerations for foreigners. These basic rules though apply to all, in order to open a new business in Luxembourg:
- Business idea and structure for a new business
- Main forms of business in Luxembourg
- Business permit and company registration
- Considerations after business registration
- Tax obligations
- Available financial aids
Specific considerations for foreigners opening a business in Luxembourg
If you are a foreigner, resident or non-resident, who wants to open a new business in Luxembourg, there are some factors to consider. It is relatively easy, as it would be for a local, but there might be some extra requirements depending on residency status and citizenship. There are also differences between EU citizens and non-EU citizens. So let’s see, what are the requirements for a foreigner to be a business owner in Luxembourg.
Visa and residency requirements for both EU and non-EU citizens
If you are an EU citizen (or also Icelandic, Norwegian, Swiss or a Liechtenstein national) or already have a permanent residency in Luxembourg, a visa is not required to open a business, but it is required to register your arrival at the local authorities if you plan on staying for more than 3 months.
Nationals from certain countries might need a work visa to enter the country, if they plan on staying for more than 3 months, which would be the case if you want to open a new business. Depending on nationality and business type, visas vary as well: you might need a short-term visa, long-term visa or residence permit.
For the residence permit, you can only apply when you are already in the country. In the beginning, it would be a permit as self-employed and this lasts typically up to three years, but they can be renewed as long as you are still eligible due to your business and its successful continuation.
There are specific conditions applying to self-employed third-country workers, such as qualifications, proof of resources, interest in the country and more, which you can find here. Generally speaking, the requirements after the declaration of arrival would be medical check and criminal record check, before applying for residency.
For more details on the business registration process and residency requirements, check out our detailed Guide to Starting a Business in Luxembourg.
How to apply for a resident permit as a non-EU citizen
Before entering Luxembourg:
- Send an application request to the Immigration Directorate of the Luxembourg Ministry of Foreign and European Affairs.
- Have a valid passport
After that, you will be granted a temporary authorization to stay in the country, but then you would need to apply for a long-term visa type D.
After entering the country:
- Declare your arrival to the municipality of your residency
- Do a medical check
- Submit proof of payment of the administration fee of 80 euros.
After those steps you will receive a letter with which you will be able to pick up your residence permit. You can find more details for more steps regarding opening a business in this governmental file.
