Advantages and Disadvantages of Relocating to Luxembourg

The Grand Duchy of Luxembourg lives a tranquil and peaceful life. The place remains one of the most popular destinations for relocation with many foreigners if only they can afford it. Is it worth moving to Luxembourg? There can be no definite answer to this question as the country has both advantages and disadvantages.

Luxembourg is a tiny country that sits at the very heart of Europe and it is home to people of various nationalities and backgrounds. It is known for its strong economy but can a foreigner find a job there? How does it feel to permanently reside in Luxembourg if you were born somewhere else? What is the cost of living in the country? What are the best districts where you could settle down? Below we answer these and other relevant questions.

Is it worth relocating to Luxembourg? Advantages of the Grand Duchy 

The nature in the country is extremely beautiful and the views are diverse. Moving to Luxembourg with your family would be an especially attractive opportunity if you want a nice future for your children. It’s the safest country on the continent and it offers vast perspectives for personal growth. The population of Luxembourg is only about 600 thousand people and living there is comfortable indeed. 

Main advantages of moving to Luxembourg for good (or staying there for a long time):

• A multicultural and multilingual environment;
• Many jobs that pay well (the national minimum wage is 2,000 euros);
• More than 50% of the working population are foreigners;
• There are no difficulties in the assimilation of foreigners: all people here are accepted as they are, regardless of their country of origin;
• People of all nationalities are welcome to Luxembourg;
• Four languages are taught in Luxembourg at a time: English, German, French, and Luxembourgish, which is a German dialect;
• A welcoming environment for learning, working, and living in comfort;
• An advanced healthcare system;
• An ideal geographical location near famous European capitals: 2 hours by car to Frankfurt and Brussels, one hour by plane to London and Paris. You don’t have to spend too much time traveling to find yourself in a different country if you live in Luxembourg;  
• A strong banking sector;
• Many offshore opportunities for international entrepreneurs.

What are the disadvantages of living in Luxembourg?

The advantages that Luxembourg offers are impressive indeed but there are also some downsides to living there. If you decide to move to Luxembourg, you may face the following difficulties there:

• Lots of houses and apartments are for sale but their prices are extremely high. Far from everybody can afford buying residential property in Luxembourg. The rent is also high: a small studio apartment in a bedroom district will cost you at least 1,400 euros per month. It might make more economic sense to buy residential property in a neighboring country such as Germany, for example, because a house in Luxembourg costs a million euros or more.
• High cost of living in the country, as far as the prices of food and other items are concerned. Many local people like to shop abroad, which lets them save considerable sums of money. (Shopping abroad doesn’t mean travelling a long distance when you live in Luxembourg.)
• Luxembourg does not boast a very good climate: sunny days are rare and it’s often cloudy and rainy in the country.
• There are no investment programs that would allow acquiring citizenship of Luxembourg for money. 
• You will have to get an approval from official bodies of Luxembourg before you can obtain a work visa. Besides, your salary has to be above the set minimum (over 2 thousand euros). The application processing is going to take about three months or more in any case. 
• If you are not an EU citizen, getting a work visa to Luxembourg is going to be extremely difficult for you. Your prospective employer will have to convince the local authorities that he/ she has been unable to find a worker with your qualifications in the entire European Union.
• Lovers of glamorous nightlife, entertainment, and outdoor activities will find Luxembourg boring. People live by the ‘early to bed and early to rise’ saying there. You will find very few bars and nightclubs in the country.  
• The education quality is high in Luxembourg similarly to other countries in Western Europe. However, there are only two universities in the country (one state and one private) and it’s hard for a foreign student to get enrolled and acquire a student’s visa to Luxembourg.
• Lack of access to the seashore can also be regarded as a disadvantage by some people.

How you can acquire a residence permit in Luxembourg in 2023

You can acquire legal residence in the Grand Duchy on several different grounds. It can be employment, study, marriage, family reunification, investments, and so on. The most popular methods of acquiring legal residence in Luxembourg are investments and company registration in the country.

Business immigration to Luxembourg

You can obtain a legal residence permit in Luxembourg if you register a business company there. You can start a company with one of the following forms of ownership:

• A joint stock company – registered capital from €31,000 (25% must be deposited when registering the company), minimum 2 company founders, minimum 3 company directors;
• An LLC – registered capital from €2,500, one founder, and no less than two employees on the staff.  
• An investment fund.

After registering a company in Luxembourg, the foreign company founder can obtain a one-year residence permit. Besides, he/ she can employ people from other countries and obtain visas for them (three-month to one-year visas).

Employment in Luxembourg

Having a job in Luxembourg will make you qualified for a residence permit in the country.

• If you are an EU citizen, you are going to have no problems living in Luxembourg if you find a job there.
• If you come from outside the EU, your employer will have to apply for a visa for you to the country’s immigration authorities. 

Your work visa will remain valid until your job contract is valid.

Study in Luxembourg

A student’s visa is valid for one year and it can be extended. You have to supply the following documents to obtain the visa:

• An application for a visa to the Ministry of Foreign Affairs;
• An enrollment certificate for full-time studies at a university in Luxembourg;
• A confirmation of your solvency and a medical insurance policy.

Please note that a student’s visa can also serve as a work permit in Luxembourg.

Legal residence in Luxembourg by investment

Whether you are an EU citizen or not, you can acquire a legal residence permit in Luxembourg if you make a sizable investment in the local economy. You can make use of one of the following investment options available to foreigners in the Grand Duchy:

• An investment in an operating business company of at least €500,000 kept there for at least 5 years.
• An investment in a new company in Luxembourg of at least €500,000. The company shall create at least five jobs and remain in operation for at least three years. The company personnel shall be recruited via the ADEM Labor Agency.  
• Investments in funds from €3 million and up.

Your residence permit is going to be valid for three years if you make an investment in Luxembourg. It can be extended if you do not withdraw the investment. 

What is the best area to live in Luxembourg?

Depending on the area of Luxembourg that you choose for living, you will find different natural sceneries, different attractions, different architectural monuments, different job opportunities, and probably different levels of comfort. Even though the country is small (only 2,586 km²) and its population is a bit over 600 thousand people, Luxembourg is actually quite diverse as far as its ethnic groups and living styles are concerned.

The entire Duchy and its capital city have the same name – Luxembourg. Luxembourg City is the largest city in the country with a population of over 110 thousand people. There you will find many job offers, international schools, and all sorts of other public facilities. 

The country is divided into communes and districts and below we provide brief descriptions of those of them that are most popular with foreigners relocating to Luxembourg:

• Limpertsberg, a neighborhood of students and migrant workers near the center of the capital city.
• Gare Centrale, the train station area that allows you to quickly reach the most important places in the city. However, it is often overly crowded due to the proximity to the station.  
• Hohwald is a quiet neighborhood in Luxembourg with lots of green spaces and a pleasant atmosphere.
• Strassen is a quiet but expensive neighborhood with large wooded areas and nice sports facilities.
• Merle and Neudorf are ideal for families with children. There are plenty of parks and comfortable cottages where you will want to enjoy life away from the bustling metropolises and the hustle of work.
• Belair is an elite and expensive district near the center of the capital city.
• Kirchberg is a business center where numerous official organizations of the European Union are located. These include the EU Council, the General Secretariat of the European Parliament, the Directorate General of the European Commission, the European Union Court of Justice, and the European Investment Bank.
• Ville Haute (upper town) – the historic part of Luxembourg, where the streets are very narrow (mostly for pedestrians). The district is in close proximity to all main tourist attractions in the Grand Duchy.
• Ville Grund or Gronn (lower town) is the business center of Luxembourg with banks, offices, and famous breweries all around the place. The district has a mixed architecture of medieval houses and modern high-rises.

You could also reside outside the capital city, in an area where life is more tranquil and the views are fantastic. Some of the areas that you might consider include the following ones:

• The Moselle Valley is a wine-growing region. Remich, a town by the river, is a very comfortable place for living.  
• Echternach is the oldest settlement in the Grand Duchy of Luxembourg with the remains of ancient walls and numerous architectural monuments.
• Mamer with an old church and Roman baths is a perfect place for a quiet life in Luxembourg.
• The medieval town of Larochette on the White Ernz River has beautiful architecture and many passages over streams. The castle of Larochette is one of the main tourist attractions in the region.
• Esch-sur-Sur is famous for its ancient castle ruins and marvelous cliffs. It is the smallest and most beautiful settlement in the Duchy of Luxembourg.
• Vianden with its wildlife, old roads, and gothic churches is a favorite tourist destination, but it can also serve as a nice place for permanent residence.

The cost of property is rather high in Luxembourg. However, there is an option to buy a place in one of the neighboring countries: Germany, France, or Belgium. You can find residence, for example, in the villages of Konz, Oberbillig, Temmels, Nittel, Perl or Wincheringen on the German border, Thionville or Metz in France, or Arlon, Baston or Obange in Belgium.