Work & Settle in Luxembourg

About Luxembourg

Luxembourg is strategically located in the heart of Europe, between Germany, Belgium and France. Linked to the rest of Europe by a wide road network, numerous air connections from its international airport and rail connections (e.g. TGV from Paris), Luxembourg is accessible from several locations in Europe. Its central location has historically made it of great strategic importance to numerous powers, dating back to its founding as a Roman fortress, its hosting of a vital Frankish castle during the Early Middle Ages, and its role as a bastion for the Spanish Road between the 16th and 17th centuries.

Luxembourg is a land of meeting and exchange, where more than one third of the local population holds a foreign passport. More than 150 different nationalities live in Luxembourg: Portuguese, French, Italians, Belgians, Germans, etc. The country’s linguistic system is based on the use of three languages: Luxembourgish, the national language, French and German (the administrative languages), with English widely spoken as well. Its geographic location places Luxembourg City less than half an hour away from France, Belgium and Germany. This amazing mixture of nationalities and cultures reflects in all aspects of Luxembourg society through the use of languages, in gastronomy, the arts, leisure, sports, etc.

Luxembourg is a highly developed country, with an advanced economy and one of the world’s highest GDP per capita. The Grand Duchy also holds a trump card when it comes to political stability and the safety of people. For years in row, Mercer’s annual quality of Living Survey places Luxembourg among the safest capital cities in the world.

Permanent Residency in Luxembourg

There have been times people were demanding for Luxembourg permanent residency, because of her good standard of living. Getting this permanent residency has its rules for anyone demanding a permanent stay in Luxembourg. Since Luxembourg is a trilingual country, it will benefit people who are from the following countries such as Anglophone, Francophone, and the Germans. This implies such an individual can be able to carry out his or her business transactions without any barrier.

European citizens can also apply for this Luxembourg permanent residency if they have an interest in having it. There’s nothing that can hinder them from getting this visa, exception of not having the complete requirements documents to process the permanent residency. It is essential to note for anyone who wants to apply must do it through the Immigration Directorate of the Ministry of Foreign and European Affairs. This body is fully in charge of issuing a permanent residency to any candidate or applicant.

If you have lived in Luxembourg continuously for 5 years, you may apply for a Permanent Residency. Citizens of EU member states and their dependents can also apply for a Permanent Residence permit. You may apply for a PR to the Immigration Directorate of the Ministry of Foreign & European Affairs.

Before you apply, you must be able to prove that you were a lawful resident of Luxembourg for at least 5 years continuously.

The 5-year stay does not include:

  • Temporary absences of less than 6 months per year
  • Longer period of absence to complete military service
  • Uninterrupted absences for up to 12 months because of:
  • Childbirth
  • Pregnancy
  • Illness
  • Work Posting
  • Professional training

You may get a Permanent Residency before 5 years if :

  1. You have reached retirement age and were self-employed or working. You were working in another EU member state for the last 12 months and have been living in Luxembourg for the last 3 years.
  2. You were self-employed or working and you have now stopped working due to a permanent inability to work. You should also have been living in Luxembourg for more than 2 years.
  3. You are employed or self-employed and receive an accident pension due to a permanent inability to work due to a work-related illness or accident from Luxembourg.
  4. You were working or self-employed for 3 years in Luxembourg. However, you have now changed for a new job in another EU country but are still a resident of Luxembourg. You also return to Luxembourg at least once in a week.

In certain cases, dependent family members of an EU citizen may be granted PR before 5 years.

Procedure for Applying for a Luxembourg Permanent Residency

These are the steps to follow when applying for this permanent residency:

  • Written application to one’s country of residency
  • Downloading of the application form
  • Translation of documents into German or French language.
  • Submission of original documents
  • Documents must be well stamped

Important Documents for Luxembourg Permanent Residency

These following documents should be made available:

  • International passport
  • Certificate of birth
  • A brief biography of the applicant
  • Original passport photographs
  • Proof of Luxembourgish language test
  • Evidence of attending civic instruction classes.

Luxembourg visas and permits

Luxembourg is a member of the Schengen Area. Schengen visa holders are able to move freely between the states on a short-term basis for up to 90 days, for either the purpose of tourism or business. With a Schengen visa, it is possible to enter one country and travel freely throughout the Schengen zone. Passport holders of certain other countries can benefit from the same rule.

EU/EEA/Swiss citizens

EU citizens and others who are allowed free movement may enter Luxembourg and stay there for up to three months with a valid identity card or passport. In order to stay longer, they must either be employed by a company, self-employed, enrolled at a public or private educational institution or have sufficient resources to not be a burden on the social security system and have health insurance coverage. They must go to the local authority offices in their place of residence within three months of arrival, in order to apply for a registration certificate.

There is no need for a visa or permit for such individuals. Nationals from new member states must still apply for a work permit from the employment office.

Non-EU/EEA/Swiss citizens

For most non-EU nationals who wish to stay for up to three months, a visa is required. A short-stay visa can be applied for at a local Luxembourg embassy or consulate usually by submitting an application, a valid passport, proof of reason for visit, accommodation details and a return-ticket. They must also fill in an arrival certificate within three days at the administration communale  (local authority offices).

If they plan to stay for more than three months, it is necessary to apply for a temporary residence permit as an employee or self-employed person, sportsperson, student, pupil, intern, researcher or family member from the immigration ministry before they arrive in Luxembourg, as this permit serves both as a residence and a work permit, replacing the typical work permit. This can also be done at the local consulate or embassy. If there is not an Embassy of Luxembourg available, a Dutch or Belgian embassy can usually provide the same applications.

Citizenship in Luxembourg

Previously, those who planned to make Luxembourg their new home and wished to apply for citizenship were required to renounce their current citizenship. However, a legal change has been approved to allow dual citizenship.

To become a Luxembourgish citizen, you must be at least 18 years old, have lived in Luxembourg for at least 10 years, and be fluent in all three national languages (French, German, and Luxembourgish). Alternatively, you can apply for citizenship after five years of living in Luxembourg if you have ties with the country through birth, adoption, or marriage.

Work in Luxembourg

Job market in Luxembourg

The unemployment rate in Luxembourg has remained relatively stable in recent years, currently sitting at 6.6% in July 2020.

The workforce in Luxembourg is made up of nationals, cross-border commuters, and foreign workers. Luxembourg’s job market is multicultural and multilingual; in fact, working knowledge of one of the three official languages (Luxembourgish, French, or German) is essential for many jobs.

Financial services are at the heart of the economy in Luxembourg, with the transport and communications sectors also performing well. Luxembourg is a leading center in Europe for investment funds and private banking, with around 150 banks operating in Luxembourg.

The biggest employers in Luxembourg in 2019 were:

  • Post Luxembourg (telecommunications)
  • Groupe CFL (transport)
  • Cactus (food retail)
  • Groupe Dussmann (security)
  • BGL BNP Paribas (finance)
  • ArcelorMittal (steel manufacturing)
  • Goodyear Dunlop (tire manufacturing)
  • Luxair (transport)

Job vacancies in Luxembourg

There are currently no major skills shortages in Luxembourg, but a number of sectors are continuously recruiting at various levels, including:

  • finance
  • healthcare
  • retail
  • manufacturing
  • construction
  • hospitality

Job salaries in Luxembourg

Wages are typically freely determined between an employer and employee in Luxembourg. However, employers must not offer less than the social minimum wage, which increases by 20% if you’re a skilled worker or decreases by 20–25% if you’re an adolescent worker. The social minimum wage adjusts every two years.

The minimum gross monthly salary in Luxembourg for a 40-hour week in January 2020 is:

  • 18 years and over, unskilled worker: €2,141.99
  • 18 years and over, skilled worker (+20%): €2,570.39
  • 17 to 18 years old: €1,713.60
  • 15 to 17 years old: €1,606.50

The average gross salary in Luxembourg is €4,916 a month. Luxembourg uses a system of salary indexation, in other words, salaries should be adjusted by the amount that the consumer price index increases or decreases in Luxembourg.

Work culture in Luxembourg

The workplace is traditionally hierarchical and decision making is often rational and pragmatic. Punctuality and deadlines are serious business in Luxembourg, in both professional and social contexts.

Meetings tend to be brief and have the purpose of formalizing decision-making that has already been done. In addition to this, dress codes tend to be formal and conservative.

Labor laws and labor rights in Luxembourg

In terms of employment contracts, Luxembourg is similar to other EU countries with permanent contracts (CDI), fixed-term contracts (CDD), part-time contracts, and learning/apprenticeship contracts the norm.

In general, a full-time working week in Luxembourg is 40 hours. The maximum number of hours you can work in a week is 48, plus there is also a daily limit of 10 hours’ work except in special cases.

Each employee in Luxembourg receives 10 public holidays a year, however you can work on these days in return for extra salary. Full-time employees must also receive a minimum of 25 days of paid leave each year.

Notice periods for those on permanent contracts are one month for employees of less than five years, two months for those who have been employed for between 5–10 years, and three months for employees of over 10 years. This is slightly different for those on fixed-term or part-time contracts. Notice periods are also shorter during probation or trial periods.

Eligibility for getting Luxembourg Employment Visa:

In order to be eligible to travel to the country on a visa, you will have to meet the following eligibility criteria.

  1. Be a genuine traveller-You must have a valid and good intention behind travelling to the country.

  2. Eligible to bear all expenses –You must possess sufficient funds to support yourself and any dependents throughout the stay.

  3. Reasons to return – You must have strong ties in your home country that will ensure that you will return after your stay.

  4. Be of good character – You must have a clean criminal track record and be of good character. You may have to provide PCC (Police Clearance Certificate) for the same.

  5. Be in good health –You must at least meet the minimum health requirements required by the authorities.

Luxembourg Work Visas

Most of your employees will need to apply for long-term visas after their temporary residence certificate expires. The application process changes based on reason for entry, such as employment, education, and private circumstances, but all applicants must submit the documents in person at the Luxembourg diplomatic or consular mission in their home country or the Schengen area. Some of the requirements include:

  • Two recent and identical photos proving identity
  • A valid passport or travel document
  • Temporary authorization to stay

Once an employee gets the “D” visa, it’s valid for 90 days to one year. Employees will also need to pay a 50 EUR fee to obtain the visa. Typically, it goes on the employee’s passport as a stamp or vignette.

Coraledu’s mission is to empower internationals to thrive in their lives abroad. We offer tailored work and settlement solutions designed to facilitate success for individuals and their employers worldwide, with a particular focus on Luxembourg. Contact us to discover how we can support you or your employees in achieving both professional and personal fulfillment abroad.

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