Luxembourg's new immigration law, which came into force on March 24, 2017, adopts into national law two EU directives and creates four new categories of residence permit in the grand duchy:

• A residence permit as a seasonal worker
• A residence permit for temporary intra-group transfers
• A residence permit for investors
• A residence permit as part of a business continuity plan for non EU-companies

The two directives also introduce substantial changes to the previous immigration provisions that aim to increase Luxembourg’s attractiveness as a host country for foreign talent. To encourage highly-skilled employees to remain longer in Luxembourg and to simplify administrative processes, the law extends the maximum validity of the European Blue Card from two to four years.

Before the adoption of the legislation, a waiting period normally applied before other family members were allowed to apply for residence permits and join non-EU relatives in Luxembourg. The law removes the requirement of one-year prior residence for the Luxembourg-based family member, although certain exceptions remain.

Visa issues and sponsorship schemes

Over the past few years, Luxembourg has seen a steady rise in applications for residence permits, and the changes to the law are likely to result in a new wave of applications to the Luxembourg immigration authorities, which could lead to delays in the processing of residence permits. We strongly recommend consulting an immigration expert throughout the process to ensure that applicants comply with the immigration procedure, and submit all required documents in due time and form to the immigration authorities in order to receive the residence permit on time.

Ongoing monitoring of changes to immigration rules

As Luxembourg immigration regulations are constantly being updated to ensure the country remains attractive to skilled individuals from abroad, it is highly advisable to monitor the evolution of the legal framework on a regular basis and keep in regular contact with local immigration experts to obtain ongoing practical input on the immigration procedure and ensure that company immigration policies remain compliant with the updated rules.

How can we help?

Arendt's employment law, pensions and benefits practice advises domestic and international institutional clients from the banking, financial and industrial sectors on business immigration and expatriation. Our lawyers have extensive expertise in representing employers in all kinds of employment litigation, and provide assistance in negotiations with trade unions and employee representatives, especially for banking and industry clients. To ensure we provide expert and proactive employment law advice specifically tailored to our clients' needs, our lawyers can draw on expertise from other practice areas within the firm.