Third-country nationals (namely non – EU nationals or a country deemed to be such-Iceland, Liechtenstein, Norway or Switzerland) who have obtained a legal residence permit in another member state of the European Union (EU) or in the country in question, anyone who is wishing to work in Luxembourg without residing there must apply for a work permit.
Third-country nationals lawfully residing in another EU member state or country treated as such (Iceland, Liechtenstein, Norway or Switzerland) will be subject to a labour market check: the employer announces a vacant position in the national employment agency (Agence pour le développement de l'emploi - ADEM) so that it can verify whether the vacant position can be occupied by a person available on the national or European labour market.
If ADEM is unable to offer a candidate with the required profile within 3 weeks, the employer may ask ADEM to provide a certificate that allows them to hire the person of their choice.
The employer must sign a contract with a third-country citizen. The contract may contain a waiver clause stating that the employment contract will not enter into force until a work permit is obtained.
The employer must provide the original ADEM certificate to a third-country citizen, who must attach it to the work permit application.
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When applying for a long-term visa, collect and submit all the necessary documents listed below to the nearest Luxembourg embassy in your country:
- Proof of residence in Luxembourg. A document confirming that you have a place to live in Luxembourg. This can be an invitation letter, a rental agreement, a hotel reservation, a rental agreement, etc.
- Criminal record. A criminal record is a document issued by the police in your home country. This document must prove that you have no criminal record and are not a threat to the Republic of Luxembourg.
- Valid passport. Your passport must be valid for at least three months after the return date and have two blank pages. In addition, please attach copies of your previous visas, if any.
- Application form. First, download the application form online and fill it out. Once completed, print out a hard copy and sign it at the end. Do not leave any blank fields.
- Two photos in accordance with the photo requirements for a Schengen visa. You must be photographed against a clean background with colors and they must be 35-40 mm in size for the passport. Make sure the photos are taken recently (within the last six months).
- Health insurance. A document confirming the existence of valid health insurance that covers any medical expenses incurred during your stay in Luxembourg. The health insurance must have a coverage of 30,000 euros. After entering Luxembourg, you must apply for health insurance in Luxembourg.
- Bank statement. This is a document issued by your bank. It must prove that you are financially stable and can finance yourself during your stay in Luxembourg.
- Payment of the fee. The fee for a long-term visa to Luxembourg is 80 euros. During the application process, you can finish paying the fee at the embassy/consulate and attach the payment receipt to the other required documents.
- Additional documents depend on the type of visa you are applying for.
- Requirements for an employment visa to Luxembourg
- Employment contract. An employment contract is proof that you have a job waiting for you in Luxembourg. The employment contract must specify the salary, duration of work, position, etc.
- Professional qualifications. A copy of your diploma or professional qualification.
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Application for a work permit
Before starting work in Luxembourg, third-country nationals must submit a written application for a work permit to the Immigration Directorate of the Ministry of foreign and European affairs.
Applicants must provide their last names and first names, as well as the exact address in their country of residence. They should also add the following to their application:
- a copy of their valid passport, in full;
- a copy of a residence permit issued by another EU member state or country considered to be such (Iceland, Liechtenstein, Norway or Switzerland);
- recent family composition certificate or recent residence certificate from the country of residence;
- autobiography;
- copies of diplomas or professional qualification documents;
- a copy of the employment contract in accordance with the labor legislation of Luxembourg, with the date and signature of both the applicant and the employer;
- original of the latest certificate issued by ADEM, which allows the employer to hire a person of their own choice for the declared vacancy;
- where appropriate, a recent certificate of belonging to the Luxembourg joint Social Welfare Centre for a spouse / registered partner or heir (father);
- if necessary, a power of attorney.
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Power of attorney
Third-country nationals can instruct a third party (such as a future employer) to apply in their stead. In this case, the foreigner must provide confirmation of his power of attorney in the form of a written power of attorney, duly dated and signed by the principal. The signature must be preceded by a handwritten entry "bon pour procuration" (suitable for assignment).
The attached documents must be originals or certified copies (with the exception of passports and diplomas, for which simple copies are sufficient). If the authenticity of the document is in doubt, the minister of immigration may require that the document be certified by the relevant local authority and legalized by the embassy. If the documents aren’t written in German, French, or English, you must attach an official translation.
Only full applications will be considered. Blank applications are returned to the applicant.
The time required for a response from the Ministry of foreign and European affairs is usually a maximum of 3 months. If no response is received within this period, the applicant may consider that his application has been rejected.
💡 Tip: To ensure a safe move to a new country, we advise you to contact a specialist. Our qualified specialists with legal education will help you avoid unpleasant situations during migration.
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Obtaining a work permit for highly qualified employees
In this context, highly qualified employees are third-country nationals who:
- can enter into an employment contract for a year or more;
- can provide a document which is confirmed that they have high professional qualifications required for the activities or industries specified in the employment contract, or that they meet the requirements to perform a regulated profession specified in the employment contract;
- receive a salary that is at least 1.5 times the average gross annual salary (EUR 78,336 in 2019) or at least equivalent to 1.2 of the average gross annual salary in Luxembourg (EUR 62,668.80 in 2019) for work in one of the professions for which the government has a particular need for third-country nationals.
Before starting work in Luxembourg, third-country nationals must submit a written application for a work permit to the Immigration Directorate of the Ministry of foreign and European affairs.
Applicants must provide their last names and first names, as well as the exact address in their country of residence. They should also add the following to their application:
- a copy of their valid passport, in full;
- a copy of a residence permit issued by another EU member state or country considered to be such (Iceland, Liechtenstein, Norway or Switzerland);
- recent family composition certificate or recent residence certificate from the country of residence;
- autobiography;
- certified copies of the applicant's diplomas or professional qualifications;
- a copy of the employment contract complying with Luxembourg labour law, with the date and signature of both the applicant and his employer, indicating a salary at least 1.5 times the average gross annual salary or at least 1.2 times the average Luxembourg gross annual salary for work in one profession for which the government has noticed a particular need for employment of third-country nationals and for a period of one year or more;
- if necessary, a power of attorney.
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Validity period of the work permit
The work permit is valid from the date of approval of the application. The permit can be extended upon request, provided that all eligibility requirements are still met and the beneficiary can prove that he or she actually worked while his or her work permit was valid.
The initial work permit is valid:
- for a maximum of one year (without extending the validity period of the residence permit);
- only one profession for any employer;
- for a specific sector.
The sector and profession for which a third-country citizen has the right to work are indicated in the residence permit in the "comments" field in the form of the "ISCO" code.
This is a three-digit code that indicates the profession for which access to the labor market is granted, defined according to the ISCO classification (international standard classification of professions). The ISCO classification is an International Classification of professions developed by the International Labor Organization.
The full list of ISCO codes is available online. For more information on this classification, please visit the International Labour Organization website.
Changing the sector and / or profession is only possible with the permission of the minister of foreign and European affairs.
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Extension of the work permit
From the first renewal, the work permit can be extended for a maximum of 3 years.
However, if the permit holder is unable to prove that they actually worked during the period of validity of the work permit, or the renewal of the work permit occurs during the period when they receive unemployment benefits, the work permit will only be extended for a maximum period of up to one year.
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Update procedure
To renew a work permit, third-country nationals must submit an application to the Immigration Office of the Ministry of foreign and European affairs 2 months before the work permit expires.
The following documents must be attached to the application for renewal:
- a copy of a valid passport;
- a copy of the employment contract that complies with Luxembourg labor law, with the date and signature of both the applicant and his employer (for a highly qualified employee: the salary is at least 1.5 times the average annual gross salary or at least 1.2 times the average gross annual salary for some professions);
- recent certificate of membership in the Luxembourg joint social welfare center, including all employee affiliation to date;
- a copy of the temporary residence permit issued by the EU member state where the applicant resides, or a copy of the receipt for the extension of the request for temporary residence permit;
- recent residence permit (less than 3 months) for the country of residence.
Types of companies in Luxembourg
The following types of companies can be opened in Luxembourg
- Sole proprietorship, which is the simplest form of doing business in Luxembourg;
- a limited liability company, which requires a minimum authorized capital of 12,000 euros;
- public or joint stock company, which requires a minimum share capital of EUR 30,000;
- a limited liability company that requires a minimum authorized capital of EUR 30,000;
- a European company with a minimum authorized capital of EUR 12,000.
Foreign companies may establish subsidiaries, branches and representative offices in Luxembourg.
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Requirements for starting a business in Luxembourg
Foreign investors who want to open their own business in Luxembourg should consider the following aspects:
- you must choose a trade name for your company in accordance with the requirements of the Commercial Code;
- prepare a package of documents, including the drafting and notarization of the Memorandum and Articles of Association;
- the company must have a legal address in Luxembourg and a bank account in a local bank;
- the investor must take into account the share capital requirements for each type of company;
- the company must be registered with the Luxembourg Trade Register and tax authorities;
- the company must apply for special business licenses from the authorities in the industry in which it will operate.
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Stages of company registration in Luxembourg
Starting a business in Luxembourg involves the following steps:
- selection and reservation of a unique trade name in the Trade Register
- preparation and notarization of constituent documents by a public notary
- submission of documents to the Registrar of Companies of Luxembourg;
- registering the company with the tax authorities and obtaining a tax number and VAT number;
- applying for the necessary licenses and permits to start operating.
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Sole proprietorship in Luxembourg
One of the easiest ways to open a company in Luxembourg is to register as a sole trader. This form of business is recognized by the Companies Law and is quite simple to set up. The requirements for setting up a sole proprietorship in Luxembourg require a single business owner who will carry out commercial activities on his or her own behalf.
A sole proprietorship must be registered, like any other type of company, in the Luxembourg Trade Register. The business owner must also register for tax purposes and obtain special licenses in accordance with the types of activities he will carry out.
The registration of a sole proprietorship by a foreign investor requires prior obtainment of a residence permit in Luxembourg and a registered office in Luxembourg.
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Articles of association in Luxembourg
The most important documents to be prepared when opening a company in Luxembourg are the Memorandum and Articles of Association, which must be drawn up and certified by a public notary of the Grand Duchy.
The Articles of Association must contain information about the company being registered, in particular
- names of shareholders and their participation in the authorized capital of the company
- names and personal data of the directors, their duties and responsibilities
- the subject matter of the company's activities based on the KVED codes used in the EU;
- information on the company's authorized capital and the minimum value of one share;
- the legal address of the company and other provisions related to the annual general meeting.
- The articles of association may also contain other special provisions, such as specific conditions under which disputes between shareholders may be resolved. They may also contain provisions for the appointment and dismissal of the company's executives.
There are several laws that need to be followed when opening a company in Luxembourg, including the Company Law, the Corporate Law, as well as the Civil Code.
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Duties of shareholders in Luxembourg
A limited partnership in Luxembourg is characterized by two types of shareholders: general shareholders and limited shareholders. The main difference between them lies in their liability and decision-making powers - limited partners have limited liability in accordance with their capital contribution and cannot make management decisions, while general partners have unlimited liability and can participate in the company's decision-making. A limited partnership does not require a minimum authorized capital.
Investors wishing to open a company in Luxembourg can choose a cooperative company, although this type of business is rarely used. A cooperative society consists of at least seven members, it has no minimum share capital, and the liability of the members is set out in the company's articles of association.
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Opening a corporate bank account in Luxembourg
An important aspect of opening a company in Luxembourg is the opening of a bank account in which the share capital will be deposited. Opening a corporate bank account in Luxembourg is not difficult, given the fact that the Grand Duchy is one of the most important financial centers in Europe.
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Hiring employees for a company in Luxembourg
After registering the company in the Commercial Register, the owner will also need to hire employees in accordance with the conditions set by local law. The company's directors can also be considered as employees, so they will also need to sign employment contracts.
The company must register with the relevant authorities to obtain social insurance, pension and occupational accident insurance. In addition, all employment contracts must be registered with the Grand Duchy's labor authorities.
Luxembourg companies can also hire foreign employees in accordance with the Employment Law. They are subject to local law, with the only special requirement being a work permit for non-EU nationals.
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Tax registration when starting a Luxembourg company
Once a company is registered with the Luxembourg Companies Registry, it must obtain a tax identification number and a VAT number. These will allow the company to carry out financial activities, as well as buy and sell goods.
VAT registration can also lead to the company obtaining an EORI number to carry out trading activities within the community.
We remind foreign investors that corporate tax in Luxembourg is applied progressively at the rates of 18% and 15%. The standard VAT rate in Luxembourg is set at 17%.
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What is a Luxembourg business visa?
Better known as the Luxembourg Schengen business visa, this category of Schengen visa C is issued to individuals who are visiting the country for business purposes. It is issued for a stay of up to 90 days over a 180-day period and can be available as a one-time, two-time, or multiple. You can travel in the Schengen area with this category.
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Eligibility for a Luxembourg business visa
To be able to apply for this business permit, you must meet a certain set of requirements, namely:
- You must reside in the country where you are applying. If you reside under a residence permit in any foreign country, you can apply for it with the appropriate visa authority in that country.
- You must have a valid passport in accordance with the rules.
- The main purpose of your visit should be to participate in business events.
- You must have sufficient funds to cover your expenses throughout your stay in the country.
- You should only apply for a permit if:
1. Luxembourg is your only destination;
2. Luxembourg is one of your many destinations in Schengen, in which case you spend most of your time here;
3. Luxembourg must be your port of entry to the Schengen area.
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Documents required for a business visa to Luxembourg
According to the requirements, below is a list of documents that you must submit for a successful application:
1. it must have at least 2 blank pages.
2. passports older than 10 years are not allowed.
3. it must be valid for at least 6 months from the date of travel.
4. old passports, if any, are subject to attachment.
- Cover letter from the sending company.
1. it must contain basic information about the user and the source of income.
2. it should clearly indicate the purpose and duration of the session.
3. it must be on the company's letterhead and have a seal.
4. it should be addressed to the Embassy of the Grand Duchy of Luxembourg.
- Invitation letter from a Luxembourg organization/company with complete information about the visit or entrance tickets to fairs, conferences, etc. in Luxembourg.
- Company registration certificate.
- Travel health insurance for at least 30,000 euros.
- Proof of profession. Proof of profession, such as a job letter, a copy of your business license, and so on.
- Financial documents. Such as bank statements for the last 3 months, a copy of the savings book, ITR, etc.
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Time to apply for a business visa to Luxembourg
The business visa processing time is usually about 15 business days. However, this may be very different depending on several factors, such as the number of entries, the validity period of the permit, the number of applications at the embassy, as well as your previous travel history, and so on. As a result, you are asked to make a request in advance. You must apply at least 15 days in advance, but no later than 3 months before your trip.
Cost of a business visa to Luxembourg
The process fee depends on several parameters, such as biometric fees, the number of records, and any other service costs. This may also depend on the exchange rate. Therefore, it is suggested to check the exact amount of fees before applying.
Once you get this permission, you should keep in mind the following points:
- Pay attention to the expiration date, length of stay, and number of entries indicated on the visa sticker. You mustn’t stay longer than the permitted period of stay.
- Take all travel documents with you before traveling. If you don’t own them, you will be denied entry.
- Make sure that you are traveling to Luxembourg within 6 months of the date of issue or as indicated. After this date, your permit will become invalid and you won’t be able to enter the country.
- When traveling within the country, take a copy of your travel documents with you. If you are traveling to other Schengen countries, you will need to have the original travel documents with you.
- As long as you have a business permit, you may not work or engage in other work - related activities.
- You will not be able to renew your business visa under any normal conditions.
- You can move freely within the Schengen area. And depending on your type of entry, you can enter or exit Schengen as allowed.
Luxembourg