In short
Luxembourg has no visa branded for retirees. Non-EU retirees used the residence permit for "private reasons" as a self-sufficient person, but a law in force since 12 May 2023 limits the accepted income to pay from work in the EU or Schengen area, or an old-age or disability pension paid by Luxembourg or another EU/Schengen state. US Social Security, 401(k)/IRA withdrawals, private pensions and investment income do not count — so most American retirees no longer qualify. People who do qualify need resources of at least the minimum wage (€2,771 a month from June 2026), health insurance and housing; the permit lasts up to 3 years. Other routes are family reunification with a spouse who lives in Luxembourg, Luxembourg nationality by option for some descendants, or the investor permit, which may be abolished.
Retiring in Luxembourg: key facts
Last verified 28 September 2026| Private reasons (retirees) | Since May 2023 only income from work in the EU/Schengen or an EU/Schengen state pension counts — US Social Security, 401(k)/IRA and investment income do not; benchmark €2,771 a month# Source: Guichet.lu: residence for private reasons · Lexgo: new restrictions on residence for private reasons (2023) |
|---|---|
| How to apply | Apply from abroad for a temporary authorisation to stay (€80) before you travel; Americans then enter visa-free, declare arrival at the commune within 3 days, pass a medical check and collect the residence permit# Source: Guichet.lu: hiring a third-country salaried worker · Guichet.lu: residence for private reasons |
| Minimum wage | €2,771.33 a month unskilled, €3,325.59 qualified (from 1 June 2026) — the highest in the EU# Source: Elvinger Hoss: wage indexation of 1 June 2026 · Eurostat: minimum wage statistics |
| Healthcare | Workers are insured with the CNS; others can join voluntarily from about €155 a month (2026), with a 3-month wait# Source: CCSS: voluntary health insurance |
| Investor permit | €500,000 in an existing company, €500,000 in a new company creating 5 jobs, €3 million in an investment structure or a €20 million deposit; a bill to abolish it is pending# Source: Guichet.lu: investor residence permit · Chamber of Deputies: bill 8586 (repeal of the investor permit) |
| Citizenship by descent | The 2018 deadline for descendants of Luxembourgers has passed; adults with a Luxembourgish parent or grandparent can still apply by option, with conditions estimate# Source: Guichet.lu: Luxembourg nationality by option |
| US tax treaty | Signed 1996, in force since 2000; US Social Security is taxed only in the US# Source: IRS: Luxembourg tax treaty documents · HCO: US–Luxembourg treaty and pensions |
| US–Luxembourg Social Security agreement | In force since 1 November 1993 — avoids paying into both systems# Source: SSA: US–Luxembourg Social Security agreement |
| Wealth and inheritance | No net wealth tax for individuals since 2006; inheritances between parents, children and spouses are generally tax-free# Source: PwC Tax Summaries: Luxembourg — other taxes |
| Long-term residence | After 5 years of lawful residence with stable resources and health insurance — no language test (Blue Card holders: 5 years in the EU, last 2 in Luxembourg)# Source: Guichet.lu: EU long-term resident status · Guichet.lu: EU Blue Card (highly qualified worker) |
| Citizenship | 5 years of residence (the last year uninterrupted), Luxembourgish test (A2 speaking, B1 listening) and the "Vivre ensemble" course or exam; dual citizenship allowed# Source: Guichet.lu: naturalisation · Guichet.lu: naturalisation — language test and civics course · Luxembourg Foreign Ministry: dual citizenship |
Not American?
Canadians, Australians, Brits and other non-EU citizens: the same rules apply
The 2023 rule applies to all non-EU citizens, so Canadian, Australian, New Zealand and British retirees face the same limits as Americans. Only a few points differ:
- Canada
- Australia
- New Zealand
- United Kingdom
- Japan
- South Korea
- + other visa-free countries
| EU/Schengen pensions | A retiree who earned a state pension in an EU or Schengen country — for example after working in Germany or France — can use that pension for the permit, whatever their nationality. |
|---|---|
| Pension tax | Under the US treaty, US Social Security is taxed only in the US. Other countries' treaties treat state pensions differently. |
| Documents from abroad | Need an apostille; the US, Canada (since 11 Jan 2024), the UK, Australia and NZ issue them. Documents in English, French or German need no translation.Source: HCCH: Apostille Convention status table |
At a Glance
Retiring in Luxembourg in Numbers
Why Luxembourg?
Why Retirees Look at Luxembourg
Luxembourg is one of Europe's safest and most stable countries — AAA-rated, multilingual, with free public transport and citizenship after 5 years with dual nationality allowed. For most American retirees, though, the 2023 change has closed the usual door.
Safe, Wealthy, International
AAA rating · Level 1 advisory · 46.6% foreign residents
A small, well-run country where English is common, and France, Belgium and Germany are minutes away.
US Retirement Income Does Not Count
Law of 21 April 2023, in force 12 May 2023
The self-sufficient category now accepts only work income from the EU/Schengen or an EU/Schengen state pension. US Social Security, IRAs, 401(k)s and investments are not accepted.
The Rules in 2026
Luxembourg "Private Reasons" Permit: Requirements
If your income does come from an accepted source, these are the main conditions for the self-sufficient person category. You apply from abroad before you travel.
| Requirement | Details |
|---|---|
| Accepted income EU/Schengen only | Pay from work in an EU or Schengen country, or an old-age or disability pension paid by Luxembourg or another EU/Schengen state. US pensions, Social Security and investment income are not accepted. |
| Amount ≈ €2,771/month | Stable resources of at least the minimum wage for unskilled workers (€2,771.33 a month from 1 June 2026). |
| Health insurance Comprehensive | Health insurance valid in Luxembourg. Once resident you can join the CNS voluntarily (from about €155 a month, with a 3-month waiting period). |
| Housing Suitable accommodation | A lease or deed for a home in Luxembourg. |
| Clean record Criminal record extract | A criminal record extract from the US; documents in English, French or German need no translation. |
| Permit Up to 3 years | The residence permit lasts up to 3 years and is renewable; apply for renewal within 2 months before it expires. |
Fee €80. Source: Guichet.lu: residence for private reasons · Lexgo: 2023 restrictions
Before you plan a Luxembourg retirement, check where your pension comes from. A US pension alone no longer opens the door.
Step by Step
The Application Process
Check that your income qualifies
Only EU/Schengen pensions or work income count. If yours does not, look at the alternatives below before spending on applications.
Apply from abroad
Send the application for a temporary authorisation to stay to the Directorate of Immigration (€80). Americans do not need a separate entry visa.
Enter and declare your arrival
Declare your arrival at the commune within 3 days and complete the medical examination, including TB screening.
Collect your residence permit
Apply for the residence card after arrival. It lasts up to 3 years and can be renewed.
Alternatives
Other Ways for Retirees to Live in Luxembourg
Family reunification
If your spouse or partner lives and works in Luxembourg with a residence permit, you can join them (the sponsor needs stable resources and suitable housing).
Luxembourg nationality by option
The old deadline for descendants passed in 2018, but adults with a Luxembourgish parent or grandparent can still apply by option under certain conditions — this gives an EU passport.
Investor permit
From €500,000 in a Luxembourg company to a €20 million deposit. Few permits have been granted and a bill to abolish it is pending in parliament.
Retire nearby
France, Belgium and Germany have their own routes for non-EU retirees — for example France's long-stay visitor visa — and Luxembourg is minutes away.
Tax & Money
Tax for Retirees in Luxembourg
US Social Security
Under the US–Luxembourg treaty, US Social Security and other public pensions are taxed only in the US. Private pensions are usually taxed where you live.
Income tax
Residents pay 0–42% plus a 7% or 9% solidarity surcharge on worldwide income.
No wealth tax for individuals
Luxembourg abolished net wealth tax for individuals in 2006. Inheritances between parents, children and spouses are generally tax-free.
US filing continues
You still file a US return, FBAR and possibly Form 8938. The US–Luxembourg Social Security agreement (1993) helps if you also worked in Luxembourg.
What to Know
Common Pitfalls
Older guides are out of date
Many websites still describe the pre-2023 rules, when any stable income could qualify. It no longer does.
No "type D visa first" for Americans
Americans apply from abroad for a temporary authorisation to stay and then enter visa-free.
Healthcare costs
Voluntary CNS insurance starts at about €155 a month and only pays after 3 months — keep private cover until then.
Citizenship needs Luxembourgish
After 5 years you need a Luxembourgish test (A2 speaking, B1 listening) and the "Vivre ensemble" course. There is no French or German written test.
Luxembourg could work for your retirement if
- You receive an EU or Schengen state pension.
- Your spouse or partner lives and works in Luxembourg.
- You have a Luxembourgish parent or grandparent.
- You can afford rent of about €1,800–2,000 a month for a 1-bedroom.
FAQ
Frequently asked questions
Can American retirees get a residence permit in Luxembourg?
Usually not on US retirement income. Since 12 May 2023 the "private reasons" permit only accepts income from work in the EU/Schengen or an EU/Schengen state pension. US Social Security, 401(k)/IRA and investment income do not count.
How much income do I need?
Resources of at least the minimum wage for unskilled workers — €2,771.33 a month from June 2026 — from an accepted EU/Schengen source.
Is the investor permit still available?
For now — €500,000 in a company up to a €20 million deposit — but bill 8586 to abolish it is pending in parliament, and few permits have ever been granted.
How long does it take to get Luxembourg citizenship?
5 years of legal residence, the last one uninterrupted, plus a Luxembourgish test and the "Vivre ensemble" course. You can keep your US passport.
How is US Social Security taxed if I live in Luxembourg?
Under the US–Luxembourg treaty it is taxed only in the US. Private pensions are usually taxed in Luxembourg.
Luxembourg
Everything about moving to Luxembourg
Retirement visas · other countries
Retirement visas in other countries
Planning Your Retirement in Europe?
We help you find the country whose rules fit your income — and handle every step of the application.