Luxembourg to End Its "Golden Visa" Program: A Symbolic Move or a Shift in EU Policy?

Luxembourg, one of Europe’s major financial hubs, is considering the closure of its Golden Visa program amid growing EU pressure and a lack of investor interest.

A spokesperson for Luxembourg’s Ministry of Interior confirmed to Luxembourg Times that the government is reviewing the program’s viability.

The Golden Visa scheme currently offers residency permits for non-EU nationals under two investment routes:
- €500,000 investment in the local economy
- Annual passive income of €27,000

However, the program has attracted minimal interest. According to government data, only six applications were submitted in 2023–2024, with four rejections. The applicants came from Russia, Israel, India, and China, though the reasons for refusals were not disclosed.

Declining Interest in EU Residency by Investment

Luxembourg joins a growing list of European nations abandoning residency-for-investment programs, often under pressure from the European Commission:
- Spain plans to abolish its Golden Visa program by April 3, 2025, citing real estate speculation and worsening housing affordability.
- Portugal ended its real estate investment route, once the most popular pathway for foreign investors.
- Malta and Cyprus shut down their citizenship-by-investment programs due to EU scrutiny over financial transparency risks.

Given Luxembourg’s low application numbers, its Golden Visa program was never a major factor in its investment climate.

While Luxembourg tightens its residency rules, Georgia is expanding its investor-friendly policies: Georgia offers a residence permit for just $100,000 in real estate investments, compared to €500,000 in Luxembourg. Unlike Luxembourg or Spain, Georgia has no restrictions on property purchases by foreigners.

Luxembourg’s decision to phase out its Golden Visa program is largely symbolic, as the scheme never attracted significant interest. However, the move aligns with the EU’s broader push to regulate residency and citizenship programs.

While Europe is tightening its investment migration policies, countries like Georgia and the UAE continue to welcome foreign investors with fewer restrictions. This trend could redirect capital flows away from the EU toward more flexible markets in the years ahead.