Moving to Luxembourg
As from 2008, work permits and residence permits for third country national workers have been merged into a single residence permit. Furthermore, such permits are limited to a particular sector of activity. All EU citizens and other persons enjoying the Community right of free movement have the right to enter national territory and to remain there for up to three months if they hold a valid identity card or passport. If such citizens wish to stay for more than three months in Luxembourg, then they must: work as a wage-earner or self-employed person; or be enrolled at an approved public or private educational institution; or have sufficient resources so as not to be a burden on the social welfare system and have sickness insurance coverage. Furthermore, they must go to the administration communale [local authority offices] in the place where they live within three months of their arrival to apply for a registration certificate. Nationals from non-EU countries who wish to stay in Luxembourg for up to three months require a visa or a valid passport. They must fill in an arrival certificate at the administration communale [local authority offices] in the place where they live within three days of their arrival. For stays of more than three months, they must apply for a temporary residence permit as an employee or self-employed person, sportsperson, student, pupil, intern, researcher or family member from the immigration ministry before they arrive in Luxembourg, as this permit serves both as a residence and a work permit, replacing the typical work permit.
Residence permits will be granted to employees as long as: it does not detract from the recruitment priority to which some workers are entitled; the activity in question must serve the country’s economic interests; the employee has the required technical skills; the vacancy for which the work contract has been signed has been declared at the ADEM [Employment Administration]. The minister may grant a waiver and issue a residence permit to a qualified third country national applying to work in a sector or profession for which there is a shortage of qualified applicants. When the job in question requires particularly highly skilled staff, third country nationals holding a higher education qualification or having worked for at least five years in a professional specialisation may be granted a ‘highly qualified worker’ residence permit under certain conditions. Residence permits will be granted more readily to applicants with a profile that is attractive to the country.
| Checklist for before and after you arrive in a country |
- check whether the immigrant’s nationality requires an entry visa for Luxembourg
- check the duration of validity of the identity card and/or passport to avoid expiry during the immigrant’s stay
- registration with the local authorities
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The free movement of goods is one of the cornerstones of the European Single Market
The removal of national barriers to the free movement of goods within the EU is one of the principles enshrined in the EU Treaties. From a traditionally protectionist starting point, the countries of the EU have continuously been lifting restrictions to form a ‘common’ or single market. This commitment to create a European trading area without frontiers has led to the creation of more wealth and new jobs, and has globally established the EU as a world trading player alongside the United States and Japan.
Despite Europe’s commitment to breaking down all internal trade barriers, not all sectors of the economy have been harmonised. The European Union decided to regulate at a European level sectors which might impose a higher risk for Europe’s citizens – such as pharmaceuticals or construction products. The majority of products (considered a ‘lower risk’) are subject to the application of the so-called principle of mutual recognition, which means that essentially every product legally manufactured or marketed in one of the Member States can be freely moved and traded within the EU internal market.
Limits to the free movement of goods
The EU Treaty gives Member States the right to set limits to the free movement of goods when there is a specific common interest such as protection of the environment, citizens’ health, or public policy, to name a few. This means for example that if the import of a product is seen by a Member State’s national authorities as a potential threat to public health, public morality or public policy, it can deny or restrict access to its market. Examples of such products are genetically modified food or certain energy drinks.
Even though there are generally no limitations for the purchase of goods in another Member State, as long as they are for personal use, there is a series of European restrictions for specific categories of products, such as alcohol and tobacco.
Free movement of capital
Another essential condition for the functioning of the internal market is the free movement of capital. It is one of the four basic freedoms guaranteed by EU legislation and represents the basis of the integration of European financial markets. Europeans can now manage and invest their money in any EU Member State.
The liberalisation of capital markets has marked a crucial point in the process of economic and monetary integration in the EU. It was the first step towards the establishment of our European Economic and Monetary Union (EMU) and the common currency, the Euro.
Advantage
The principle of the free movement of capital not only increases the efficiency of financial markets within the Union, it also brings a series of advantages to EU citizens. Individuals can carry out a broad number of financial operations within the EU without major restrictions. For instance, individuals with few restrictions can
- easily open a bank account,
- buy shares
- invest, or
- purchase real estate
in another Member State. EU Companies can invest in, own and manage other European enterprises.
Exceptions
Certain exceptions to this principle apply both within the Member States and with third countries. They are mainly related to taxation, prudential supervision, public policy considerations, money laundering and financial sanctions agreed under the EU Common Foreign and Security Policy.
The European Commission is continuing to work on the completion of the free market for financial services, by implementing new strategies for financial integration in order to make it even easier for citizens and companies to manage their money within the EU.
| Taking a car with you (includes information on driving licences) |
The implementation of the principle of free movement of people, is one of the cornerstones of our European construction, has meant the introduction a series of practical rules to ensure that citizens can travel freely and easily to any Member State of the European Union. Travelling across the EU with one’s car has become a lot less problematic. The European Commission has set a series of common regulations governing the mutual recognition of driving licences, the validity of car insurance, and the possibility of registering your car in a host country.
Your driving licence in the EU
There is currently no common EU driving licence in place, but the EU Member States have introduced a “Community Model” driving licence. This common model ensures that driving licences issued by different EU countries are easily recognised in other Member States. A principle of mutual recognition is generally applied. The licence is issued in accordance to national law, but should incorporate provisions concerning the Community Model, such as the basic conditions to be granted a licence.
Old driving licences issued before 1996 do not have to be exchanged for the new Community Model driving licence and remain valid until their expiration.
If an EU citizen takes up residence in another Member State, it is not necessary to exchange the driving licence, although many often do for practical reasons. Also, some Member States require that additional data be entered onto the licence to fulfil certain administrative requirements.
In the event of expiry, loss or theft, a new driving licence can be issued in the Member State of residence, in accordance to national conditions. Citizens should contact the competent authorities.
Registering your car in the host country
In the event you reside in another EU Member State and drive your car there for more that six months, you will be obliged to register the car with the local authorities and pay the host country’s registration tax.
Car Insurance
EU citizens can insure their car in any EU country, as long as the chosen insurance company is licensed by the host national authority to issue the relevant insurance policies. A company based in another Member State is entitled sell a policy for compulsory civil liability only if certain conditions are met. Insurance will be valid throughout the Union, no matter where the accident takes place.
Taxation
Value Added Tax or VAT on motor vehicles is ordinarily paid in the country where the car is purchased, although under certain conditions, VAT is paid in the country of destination.
More information on the rules which apply when a vehicle is acquired in one EU Member State and is intended to be registered in another EU Member State is available on the link "Motor vehicle tax". |
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