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Luxembourg Work Permits & Visas: Processes for Employers

Looking to sponsor an international hire in Luxembourg? This guide breaks down what employers need to know — from visa types to employer obligations and timelines. Whether you're hiring locally or relocating international talent, we've got you covered.

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Capital City

Luxembourg

Currency

Euro

(

€

)

Timezone

CET

(

GMT+1

)

Payroll

Monthly

Employment Cost

11.88% - 13.68%

Milani Notshe

Research Specialist

Last Updated

July 11, 2025

In This Guide

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Hiring Foreign Talent in Luxembourg: What Employers Need to Know

Are you an employer looking to sponsor international talent in Luxembourg? Navigating Luxembourg’s visa and work permit process can be complex — especially without a local legal entity or dedicated HR team.

This guide breaks down everything you need to know about employer-sponsored work visas in Luxembourg, including processing times, documentation, and local compliance rules. Whether relocating a team member or hiring locally, Playroll simplifies visa sponsorship through an end-to-end employer of record platform.

Key Takeaways

Employers must be registered with the Immigration Directorate to sponsor foreign workers.

The process typically takes 8–12 weeks for work permits.

Common work permits include the Type D visa for employees and the self-employed work permit.

Independent contractors apply under the freelancer or self-employed visa, which does not require employer sponsorship.

Work permits are location-specific and job-specific, requiring approval for job changes or relocation.

Who Needs a Work Permit in Luxembourg

In Luxembourg, work permits are generally required for non-European Union (EU), European Economic Area (EEA), and Swiss nationals seeking employment. Employers must confirm whether their prospective hires fall under this category to avoid legal complications. EU/EEA and Swiss citizens can work in Luxembourg without a permit, but other international hires must obtain the appropriate authorization.

Types of Work Visas in Luxembourg

Luxembourg offers several work visas tailored to various professional and economic needs. Employers must select the appropriate visa type based on the employee's qualifications and job requirements.

Visa Type	Description
Short-Term Visa	Allows individuals to work in Luxembourg for up to 90 days.
EU Blue Card	For highly skilled professionals earning above a set salary threshold.
Standard Work Permit	Issued for long-term employment opportunities in Luxembourg.
Entrepreneur Visa	Designed for business owners and investors setting up operations in Luxembourg.

Common Hiring Scenarios for Luxembourg

When hiring talent in Luxembourg, employers typically choose one of three pathways depending on the role, duration, & legal requirements. Below are the most common models.

Use Case 1: Sponsoring a Foreign Employee via Work Permit or Visa

This is the most common route for companies hiring full-time foreign talent in Luxembourg. To sponsor this visa, an employer (or Playroll as the Employer of Record) must have a registered legal entity in-country and issue a compliant offer of employment.

Key Employer Considerations:

Sponsorship is required — contractors or freelancers cannot apply under this visa.
Employees must remain in the approved work location unless authorized to relocate or change employers.
Processing timelines vary (approximately 8–12 weeks), depending on the consulate or embassy.

This is best for: Long-term roles with in-office or hybrid presence in Luxembourg.

Use Case 2: Hiring a Foreign Contractor in Luxembourg

Independent professionals in Luxembourg can legally work with international clients without employer sponsorship, but must comply with local tax registration and reporting laws.

With Playroll’s Contractor Management solution, you can:

Draft fully compliant local contractor agreements.
Automate contractor invoicing and cross-border payments, in Malawian Kwacha (MWK) or USD.
Mitigate risk of permanent establishment and contractor misclassification.

This is best for: Freelancers, consultants or project-based roles, especially if the worker already lives in Luxembourg.

Use Case 3: Relocating an Existing Employee to Luxembourg

Transferring an existing team member to Luxembourg? You’ll still need to navigate the same visa and payroll setup process. Even if the employee works for you elsewhere, a local employer of record is required to stay compliant.

EOR’s, like Playroll, handle all local steps, including:

Work permit sponsorship and immigration paperwork,
Registration with local authorities and payroll systems,
Enrollment in mandatory benefits and statutory schemes.

This is best for: Internal transfers or remote-first companies looking to expand into Africa, or talent retention offerings for global mobility programs.

Not Sure What to Pay in Luxembourg? Compare fair, local salaries with our free benchmarking tool.

Requirements for a Work Permit in Luxembourg

To apply for a work permit in Luxembourg, several criteria must be met, demonstrating the employer's and employee's compliance with immigration regulations.

Valid Job Offer: The employer must present a signed employment contract.
Proof of Non-Local Hiring Need: Employers must justify hiring a foreign national due to a skills shortage.
Adequate Qualifications: The applicant must meet the education and experience criteria for the role.

Luxembourg Work Permit Application Process

Step 1: Advertise the job within the EU/EEA for at least three weeks.
Step 2: Verify the applicant's qualifications and ensure they meet the job's requirements.
Step 3: Submit the application to Luxembourg's Ministry of Foreign and European Affairs with supporting documentation.
Step 4: Await approval and provide the permit to the employee before their arrival in Luxembourg.

Process for Visa Sponsorship in Luxembourg

Visa sponsorship in Luxembourg involves the employer actively supporting the employee's work permit application. This includes providing job-specific documents, such as the employment contract and proof of economic necessity, and assisting the employee with any required translations or notarizations.

What Are the Fees for a Work Permit or Visa in Luxembourg

The fees for work permits and visas in Luxembourg vary depending on the visa type. Employers and employees should factor these costs into their planning.

Visa Type	Application Fee
Short-Term Visa	€80
EU Blue Card	€140
Standard Work Permit	€100

Processing Time for a Work Permit or Visa in Luxembourg

Work permits and visas in Luxembourg typically take 8–12 weeks to process, depending on the visa type and the completeness of the submitted application.

Work Permit Renewal Periods in Luxembourg

Renewals for Luxembourg work permits are usually required annually but can vary depending on the visa type. Employers must ensure timely renewal to avoid disruptions to employment.

Visa Requirements for Digital Nomads in Luxembourg

Although Luxembourg does not yet have a specific "digital nomad visa," professionals working remotely may qualify for other visa categories, provided they meet the necessary requirements.

Proof of Income: Evidence of sustainable remote income.
Health Insurance: Valid coverage in Luxembourg.
Residence Address: Proof of accommodation in Luxembourg.

Common Challenges and Tips for Employers Hiring in Luxembourg

Employers in Luxembourg often face challenges when hiring international workers, such as navigating regulatory complexities and meeting local labor market test requirements.

Compliance: Ensuring adherence to Luxembourg's immigration laws.
Processing Delays: Managing employee expectations during lengthy visa approvals.

Hire Global employees without hassle with an EOR solution

Expanding your workforce across international borders is an exciting step, but it can be a logistical nightmare to hire and pay employees in different countries. That’s the advantage of using a trusted Employer of Record like Playroll. They can:

Handle your international payroll: An EOR will act as your payroll provider, paying your employees on your behalf in the local currency. The company will also have in-depth knowledge of local tax codes, regulatory practices, and everything else that goes into managing global payroll.
Alleviate compliance concerns: Different countries each have their own federal and local laws governing employee payments. An EOR helps ensure that you are compliant with the unique set of laws for any country in which your company operates. This is extremely important since a compliance slip-up can result in heavy fines or even a lawsuit.
Hire and pay international contractors: Sometimes a particular project or role doesn’t require hiring a full-time employee. An EOR gives employers the flexibility to also hire contractors as needed, and avoid the potential for misclassification under local labor law.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

ABOUT THE AUTHOR

Milani Notshe

Milani is a seasoned research and content specialist at Playroll, a leading Employer Of Record (EOR) provider. Backed by a strong background in Politics, Philosophy and Economics, she specializes in identifying emerging compliance and global HR trends to keep employers up to date on the global employment landscape.

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FAQs about Work Permits & Visas in Luxembourg

Can Playroll sponsor a visa in Luxembourg?

We don’t currently sponsor visas in Luxembourg — but we can still help. Our in-house compliance team supports employers through every stage of the visa process: helping you compile documentation, set timelines, and coordinate with our network of trusted local immigration advisors.

If you’re looking to hire in Luxembourg, book a demo and we’ll help you prepare, flag potential issues, and streamline the path to compliant onboarding.

What is the difference between a work permit and a work visa in Luxembourg?

A work permit authorizes employment in Luxembourg, while a work visa allows entry into the country for work purposes. Both are typically required for non-EU/EEA nationals.

How long does it take to process a work permit or visa in Luxembourg?

Processing typically takes 8–12 weeks, depending on the type of visa and the completeness of the submitted application.

What are the requirements for sponsoring a work permit or visa in Luxembourg?

Employers must provide a valid job offer, justify the need to hire a foreign national, and assist with the necessary documentation, such as employment contracts and proof of qualifications.