Country Update 2025: LUXEMBOURG

Contributed by: Cora Maglo

May 2025

1. Legislative Changes

• The Law of 4 June 2024, amending the modified Law of 29 August 2008 on the free movement of persons and immigration, transposed EU Directive 2021/1883 (the "Blue Card Directive") into national law.

• The Law of 18 December 2024 implements several EU regulations related to the Schengen Information System (SIS), particularly in the fields of police and judicial cooperation, border checks, the return of irregular third-country nationals, and the interoperability of EU information system

• The Budget Law 2025 (Law No. 8444), adopted on 20 December 24, introduced Luxembourg's updated inpatriate (expatriate) tax regime, effective from 1 May 2025.

• The government is currently examining the usefulness of the residence permit system for investors.

2. Business Immigration

Changes on highly skilled immigration:

• Reduced employment contract duration : from 1 year to 6 months

• Lower salary thresholds: from €85,000 -> €58,000 -> €63,000.

• Expanded eligibility

• Enhanced mobility

• Streamlined Family Reunification

3. Family based immigration

For applications submitted simultaneously with an EU Blue Card submission, residence permits for family members of third-country nationals are granted at the same time as the Blue Card itself. The same applies to family members of a Blue Card holder from another EU Member State. If family members join the Blue Card holder after the card is granted, the processing deadlines are 20 days and 30 days respectively (Articles 6 and 7 of the Law of 4 June 2024)

There has been a general increase in the number of applications granted.

4. Asylum

In 2024, Luxembourg had 3.2 first-time asylum applicants per 1,000 people, positioning it among the EU countries with high per capita rates.

This represents a 20% decrease compared to 2,446 applications in 2023.

In June 2024, Luxembourg enacted significant reforms to its asylum legislation, aligning with the European Union's New Pact on Migration and Asylum. 

1. Detention criteria for asylum seekers

2. Access to reception conditions

3. Standardization of material assistance

4. Facilitated access to employment

5. Integration framework overhaul

These reforms have attracted huge criticism from human rights organisations and a famous civil servant.

5. Deportation

No changes.

6. Citizenship

No changes. Decrease in nationality acquisitions.