Luxembourg: The domicile of choice for financial services - Alfi

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2.2. Staying for less than three months Non-EU nationals staying in Luxembourg for less than three months must meet the entry conditions outlined above. Within three days of their arrival in Luxembourg, they must declare themselves at the town hall of the place they plan to live or at the hotel where they are staying. Non-EU nationals staying in Luxembourg for less than three months are in general not entitled to work unless they have a permit. However, this is not required for periods of less than three months in some cases, such as where the purpose is to visit business partners, develop contacts, negotiate contracts or to attend trade fairs or board meetings. 2.3 Staying for more than three months Non-EU nationals wishing to stay in Luxembourg for more than three months must apply to the Immigration Directorate of the Ministry of Foreign Affairs for an authorisation to stay (before entering the country) and fulfil conditions for one of the types of authorisation provided for by law. These concern salaried employees (including sub-categories such as transferred and highly skilled workers), independent/self-employed professionals, sports people, school and university students, trainees and volunteers, researchers and family members, with provision also made for personal and exceptional reasons as well as long-term residence. On receiving authorisation to stay, applicants who do not need a visa must enter Luxembourg within 90 days and those that do require a visa must apply for one within 90 days. When they arrive in Luxembourg, they must apply for a residence permit, a procedure involving in particular registration at the town hall and a medical examination. Recent changes to immigration law did away with the separate work permit previously required for non-European nationals wishing to work in Luxembourg. Non-EU nationals with a residence permit can travel inside the Schengen Area for three months out of every six, but do not have free access to the labour markets of other Schengen member states. The family members of a resident may also apply for residence permits (family reunification) provided that the resident previously obtained a residence permit valid for at least one year, has resided in Luxembourg for at least 12 months and will be eligible to apply for a permanent residence permit in the near future. These conditions do not apply to residents who have obtained residence permits as highly skilled workers, which require a minimum of five years of higher education or specialised professional experience, as researchers or as transferred employees. If the resident is a single parent, his or her children are also exempted. Family members who may apply for an authorisation to stay include, among others, spouses, civil partners (in cases where such partnerships are legally recognized) and unmarried children under 18 years of age. For further information, please visit the following websites: Ministry of Foreign Affairs (www.mae.lu) Citizens Advice Bureau in Luxembourg City – Bierger Center (www.vdl.lu) Citizens Advice Bureau in Esch-sur-Alzette – Bierger Center (www.esch.lu) The Law of 29 August 2008 on Freedom of Movement and Immigration, available at www.legilux.lu The online portal De Guichet offers a one-stop service for citizens and companies to carry out administrative formalities (procedures, online forms, downloadable forms and advice). Accessible at www.guichet.lu 16
Labour, Healthcare and Pensions 1. Labour Market The Grand Duchy’s demographics are reflected in labour-market structures, with people from other countries accounting for more than 70% of the working population. Immigrants (foreign residents) make up part of this total, while commuters from neighbouring countries also represent a large proportion. Benefiting from its central geographical position, Luxembourg has been able to round out its multilingual workforce with personnel from the UK, Ireland, Belgium, France, Germany and other countries, who together make up a dynamic expatriate community. The financial sector employs over 42,000 people, not counting the employees of service providers such as auditors and lawyers. 2. Healthcare In Luxembourg, all workers are automatically covered by one of the country’s health insurance funds. Depending on the nature of the treatment, this covers between 80 and 100% of the fees charged by doctors and dentists. All doctors operate within the framework of the national healthcare system and must charge regulated fees to patients holding a European health insurance card or an equivalent certificate of insurance. Patients generally pay medical fees and then apply for reimbursement at a health insurance centre, presenting the doctor’s bill and proof of payment. Health insurance also covers children and spouses / partners. 3. Pensions Luxembourg has a three-pillar pension system: The state pension system applies to all persons working in Luxembourg. In addition, there are several types of occupational retirement vehicles, such as complementary pension schemes set up by an employer. Finally, individual pension vehicles are available and benefit from a special tax regime. The legal retirement age in Luxembourg is 65, although employees can – subject to certain conditions – qualify for an early pension at the age of 57. In principle, an employee must have been registered with the Luxembourg social security authority for at least 120 months to receive his or her full old-age pension. For employees who are citizens of EU and EEA member countries (the latter including Liechtenstein, Iceland, and Norway), as well as for Swiss nationals, the Luxembourg social security authority in principle accepts the insurance periods to which an employee is entitled under foreign legal provisions. Note that this is not applicable to non EU-nationals unless Luxembourg has signed bilateral conventions with a third country (“treaty country”) providing for specific provisions in this respect. Both employers and employees contribute 8% into the state pension fund. The employee’s share is deducted from his or her monthly gross salary. Luxembourg pensions are calculated on the basis of a 40-year pay-in period. For each year beneath this 40-year minimum, 1/40 of the minimum pension is deducted. Employees can also choose to participate in an optional state pension fund. Luxembourg will also pay out the Luxembourg state pension to a retiree residing in another country without any reduction, modification or suspension of the amount of the pension, depending on the individual case. For further information, please contact www.cnap.lu, the national pension insurance administration. 17
Page 1 and 2: your guide luxembourg: the domicile
Page 3 and 4: table of contents I. Contacts 4 II.
Page 5 and 6: Luxembourg Stock Exchange (Bourse d
Page 7 and 8: Luxembourg is conveniently located
Page 9 and 10: EU institutions and agencies headqu
Page 11 and 12: Tax 1. Personal Income Tax Personal
Page 13 and 14: 2. Office Space Steady growth in de
Page 15: Immigration The new immigration law
Page 19: IV. high standard of living A Cosmo
Page 22 and 23: Club, the Kikuoka Country Club, the
Page 24 and 25: ALFI ALFI (Association of the Luxem
Page 26 and 27: Authorisations by domicile 2.1% 2.5
Page 28: October 2010 alfi | association of

Luxembourg: The domicile of choice for financial services - Alfi

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