Understanding Luxembourg's Approach to Citizenship

Luxembourg, a picturesque European microstate nestled between France, Germany, and Belgium, offers a unique proposition for global citizens seeking a foothold in the European Union. As one of the founding members of the EU and home to key European institutions, this tiny yet mighty nation combines economic strength with incredible quality of life.

But let's clear something up right away – Luxembourg doesn't offer a traditional citizenship by investment program that grants instant nationality for a price tag. Instead, the Luxembourg approach reflects a deeper philosophy about what citizenship truly means.

The good news? Luxembourg does provide a legitimate pathway for investors that can eventually lead to one of the world's most prestigious passports. This journey combines investment with genuine connection to the country – something that resonates with many global citizens looking for more than just a document.

In this comprehensive guide, we'll walk through exactly how Luxembourg's investment immigration system works in 2025, what it costs, how long it takes, and the important tax and lifestyle considerations you should know. I'll also share the latest developments that might impact your decision, including recent political shifts that could change the landscape.

Whether you're an entrepreneur, a wealth manager, or someone seeking expanded global mobility through European citizenship, this guide will equip you with the knowledge to make informed decisions about Luxembourg as a potential new home.

The Reality: No Direct Citizenship by Investment in Luxembourg

Let me be completely straightforward with you – Luxembourg does not operate a conventional citizenship by investment program. Unlike some Caribbean nations or certain EU countries in the past, you cannot simply purchase a Luxembourg passport through a one-time investment or donation.

This approach aligns with Luxembourg's values and the broader European stance that citizenship represents a genuine bond with a nation – not merely a financial transaction. The Luxembourgish passport, ranking among the world's most powerful travel documents with access to 188 countries, must be earned through a process that demonstrates real commitment.

The European Union itself has been increasingly critical of "golden passport" schemes, with a landmark April 2025 Court of Justice ruling that declared Malta's investor citizenship program violated EU law by "commercializing" European citizenship. Luxembourg's policy is well-positioned in this evolving landscape, focusing on authentic connection rather than transactional relationships.

For those seeking immediate citizenship through investment, this reality might initially seem disappointing. However, the path Luxembourg offers – residence through investment, followed by naturalization – actually provides more stability and certainty in the current global climate where instant citizenship programs face growing scrutiny and potential elimination.

The important takeaway is this: while Luxembourg doesn't offer a shortcut to citizenship, it does provide a clear, legitimate pathway for investors who are willing to make the country a real part of their lives. This approach offers something more meaningful than just a passport – it offers the opportunity to truly become part of one of Europe's most prosperous and stable societies.

Luxembourg's approach to nationality is governed by the amended Nationality Law of March 8, 2017, which establishes clear conditions for becoming a citizen. This framework emphasizes integration and genuine connection to the country – principles that guide the entire process from residency to full citizenship.

Naturalization in Luxembourg requires meeting several key conditions that demonstrate your commitment to becoming part of Luxembourgish society. The residency requirement stands at 5 years of legal residence, with the final year needing to be uninterrupted. This is actually quite reasonable compared to many European countries that require 7-10 years of residence.

Language proficiency represents another cornerstone of Luxembourg's citizenship philosophy. You'll need to demonstrate competence in Luxembourgish – typically achieving A2 level speaking skills and B1 listening comprehension on the Common European Framework of Reference (CEFR) scale. While learning a new language might seem daunting, this requirement reflects Luxembourg's commitment to preserving its cultural identity.

The integration component extends beyond language to understanding Luxembourgish society. You'll complete the "Vivre ensemble au Grand-Duché" course (Living Together in Luxembourg) or pass an equivalent exam covering Luxembourg's civic foundations, history, and social structures. This ensures citizens possess the knowledge needed to participate fully in society.

A clean criminal record rounds out the requirements, with serious convictions potentially disqualifying applicants. This reflects Luxembourg's commitment to maintaining the integrity of its citizenship program and ensuring new citizens contribute positively to society.

One particularly appealing aspect of Luxembourg's citizenship law is its acceptance of dual nationality. Unlike some countries that require renouncing your original citizenship, Luxembourg allows you to maintain your existing passport while adding Luxembourgish nationality – giving you the best of both worlds in terms of global mobility and connection to your heritage.

These requirements collectively create a pathway that, while demanding genuine effort, remains accessible to those truly committed to becoming part of Luxembourg's future. The 2017 reduction of the residency requirement from 7 to 5 years demonstrates Luxembourg's interest in welcoming new citizens who are ready to integrate and contribute.

Residence by Investment: Luxembourg's Investor Visa Program

While Luxembourg doesn't offer immediate citizenship through investment, it does provide an attractive residence-by-investment program that can eventually lead to citizenship. Established in 2017 and codified as Article 53bis of the Immigration Law, this "Investor Visa" creates a pathway for non-EU/EEA nationals to establish residence through significant economic contribution.

The program offers four distinct investment options, each catering to different investor profiles and goals. You can invest €500,000 in an existing Luxembourg company, with a commitment to maintain both the investment and the company's employment levels for at least 5 years. This option appeals to investors interested in taking an active role in an established business.

Alternatively, you can invest €500,000 to create a new business in Luxembourg. This entrepreneurial pathway requires hiring at least 5 full-time employees within 3 years and maintaining the investment for a minimum of 3 years. It's ideal for visionaries looking to build something from the ground up in one of Europe's most stable economies.

For those preferring more passive investment, Luxembourg offers the option to invest €3,000,000 in a Luxembourg investment or management structure. This could include investment funds, private equity, or family office structures. The key requirement is maintaining "appropriate substance" in Luxembourg – essentially, a real operational presence rather than just a paper entity.

The final option targets ultra-high-net-worth individuals: a €20,000,000 deposit in a Luxembourg financial institution for at least 5 years. While the threshold is substantial, this option provides simplicity and stability for those with significant liquid assets seeking minimal complications.

Interestingly, Luxembourg explicitly excludes real estate investments from qualifying for the investor visa program. This deliberate policy choice aims to channel investment into productive ventures rather than potentially inflating the property market – a thoughtful approach that distinguishes Luxembourg from many competing programs.

Each investment proposal undergoes thorough scrutiny through a two-step process. First, you'll need pre-approval from the relevant ministry (Economy for business investments, Finance for financial structures or deposits). Once your investment plan receives a favorable opinion, you can apply for the residence permit through the Immigration Directorate. This rigorous vetting ensures only credible investment plans receive approval.

Successful applicants receive a temporary residence permit valid for 3 years, with the possibility of renewal for additional periods as long as investment conditions continue to be met. This permit extends to immediate family members (spouse and dependent children), allowing them to live, work, and study in Luxembourg alongside the primary applicant.

The authorities conduct a follow-up check within 12 months to verify fulfillment of commitments – ensuring the promised capital was invested and any required jobs were created or maintained. This accountability mechanism protects the program's integrity and ensures investors deliver on their promises.

Beyond the investment itself, applicants must meet standard immigration criteria, including having a clean criminal record and not posing a security risk. Once in Luxembourg, investors must register their residence address within 3 days and pass a medical exam, just like other long-stay visa holders.

One appealing aspect of Luxembourg's program is the absence of additional "donation" components or government fees beyond normal administrative costs. The investment itself constitutes the program's "price," and importantly, you retain ownership of these assets (subject to the required holding period).

The processing timeframe is relatively efficient, typically taking 4-6 months from application to approval. This means investors can establish legal residence in Luxembourg in under a year if all criteria are met – a reasonable timeline compared to many competing programs globally.

The Path from Residency to Luxembourg Citizenship

The investor residence permit serves as a stepping stone toward full Luxembourg citizenship, but it's important to understand that the permit itself does not confer nationality. Instead, it places you on a defined path that leads to citizenship after meeting specific requirements.

The key requirement for naturalization remains five years of lawful residence in Luxembourg, combined with the language and integration criteria mentioned earlier. This timeline applies equally to investor residents – there is no "fast track" or shortened route based on investment amount. This consistency reflects Luxembourg's principle that citizenship must be earned through genuine connection.

It's crucial to understand that this isn't just a paper exercise – Luxembourg expects actual physical residence in the country during this period. The residence permit isn't designed as a mere travel document or status symbol, but rather as authorization to genuinely settle in Luxembourg. As Baker McKenzie notes in their analysis, the program requires "residence in Luxembourg following permit approval."

During the five-year qualifying period, you'll need to actively integrate into Luxembourg society. This means learning the Luxembourgish language to the required level and completing the civic integration course or exam. These requirements apply regardless of your investment level or business success – reflecting the egalitarian approach to citizenship that characterizes Luxembourg's system.

After completing five continuous years of legal residence (with the final year uninterrupted) and fulfilling all language and integration requirements, you can submit your citizenship application. This involves making a personal declaration at your local commune, followed by verification of all conditions. The government typically needs a few additional months to review and approve your citizenship application after the five-year mark.

Once granted citizenship, you'll enjoy all the benefits of a Luxembourg passport, including unrestricted EU freedom of movement, consular protection abroad, and visa-free access to 188 destinations worldwide. Luxembourg's acceptance of dual citizenship allows you to retain your previous nationality (assuming your original country also permits dual status), creating true global citizenship.

If you choose not to pursue citizenship or don't meet the naturalization requirements, you still benefit from long-term residence rights. After five years of continuous stay, you can apply for permanent residency (EU long-term resident status) in Luxembourg, granting an indefinite right to remain and work.

This structured pathway reflects Luxembourg's thoughtful approach to integration. The investor visa provides privileged initial access to residency, but citizenship must be earned through the same fundamental process that applies to all residents. The five-year timeline represents the minimum period to naturalize, consistent with Luxembourg's general nationality law.

This system creates clarity and certainty – while the journey may be longer than some "golden passport" programs, it provides a stable, respected route to one of the world's most valuable citizenships in full compliance with evolving EU norms and values.

Taxation and Financial Considerations for Investor Residents

Luxembourg's appeal extends beyond its pathway to citizenship – its favorable financial and tax environment makes it particularly attractive for high-net-worth individuals. However, with residency comes fiscal responsibility, and understanding the tax implications is essential before making your investment decision.

From a business perspective, Luxembourg offers an investor-friendly environment with moderate corporate taxation. The combined corporate income tax rate sits at around 24.94%, but various exemptions and deductions often substantially reduce the effective burden. Many investment vehicles, including funds and holding companies, enjoy special tax advantages that have made Luxembourg a magnet for global business.

For individuals, Luxembourg applies a progressive income tax system with rates reaching up to 42% for high earners (income above €200,000). Unlike some competing "golden visa" destinations, Luxembourg doesn't offer special flat tax or non-domicile regimes for new residents – investor residents will generally be taxed on worldwide income under standard rules. However, you'll benefit from Luxembourg's extensive network of double taxation treaties that prevent the same income being taxed twice.

On the positive side, Luxembourg imposes no net wealth tax on individual residents – an important consideration for those with substantial assets. The country also exempts close family members from inheritance or gift taxes, with relatively low rates even for unrelated beneficiaries. This creates significant advantages for legacy planning compared to many European alternatives.

Capital gains treatment can be particularly favorable, with exemptions possible for securities held long-term or below certain ownership thresholds. These nuances depend on specific conditions, but overall, Luxembourg maintains a capital-friendly approach that appeals to investor migrants. Property tax exists but remains modest, with municipal rates typically around 0.7-1% of assessed value.

By structuring investments through Luxembourg entities or funds, investors can potentially access the country's sector-specific tax incentives for areas like fintech, investment management, and intellectual property. This flexible ecosystem allows for optimizing your overall tax exposure while maintaining full compliance.

The primary financial drawbacks to consider include Luxembourg's high cost of living, with expensive housing and services, and the progressive taxation on personal income mentioned earlier. However, for many globally-mobile entrepreneurs and investors, these costs are offset by Luxembourg's exceptional quality of life, world-class infrastructure, political stability, and strategic location at the heart of Europe.

From day one, residence in Luxembourg confers Schengen Area travel freedom, allowing visa-free movement throughout most of Europe. This immediate mobility benefit provides value even before qualifying for citizenship, especially for nationals of countries with more restricted travel options.

The financial profile of Luxembourg's investor program is characterized by significant upfront investment (€500,000 to €20,000,000 depending on the option chosen) but without non-recoverable "donation" components. Your funds remain your assets, whether deployed in a company, fund, or bank deposit – distinguishing this program from many alternatives that require forfeit payments.

While residing in Luxembourg entails normal tax obligations, the country's overall tax landscape – combining no wealth tax, strong treaty networks, and business-friendly policies – creates an environment generally considered advantageous for high-net-worth individuals and their enterprises. This balanced approach has helped Luxembourg develop into one of the world's wealthiest nations on a per-capita basis.

Recent Developments and Potential Changes

Luxembourg's investor residency scheme has operated on a surprisingly small scale since its 2017 introduction, and recent developments suggest it may face significant changes in the near future. Understanding these trends is crucial for anyone considering this pathway in 2025 and beyond.

In a notable policy shift, Luxembourg's new government (formed following the October 2023 elections) has announced it's re-evaluating the investor visa program. A Ministry of Interior spokesperson confirmed that "the government is currently examining the utility of the residence permit for investors" – marking a departure from the previous coalition's stance that ending the program was "not a current priority" despite growing EU criticism.

This reconsideration appears driven partly by the program's limited uptake. Official statistics reveal that only 15 applications were received in the seven years since the program's launch (2017-2023). Even more telling, while 2023-2024 saw a slight increase with six applications, authorities rejected four of those six – suggesting strict due diligence and possible red flags in some cases.

From 2017 through 2022, interest remained minimal with just nine investor visas requested, of which two were denied. The inaugural year saw only six successful applicants (five Chinese investors and one Australian), with just a handful following in subsequent years. This conspicuously low demand had already prompted the previous government to tell an EU working group in 2022 that it was considering ending the scheme "due to the very small number of applications."

Beyond the numbers, the broader European policy climate has shifted dramatically against investor migration programs. Following Russia's invasion of Ukraine in 2022, the European Commission strongly urged all member states to terminate investor visa and citizenship schemes, citing urgent security concerns. The Commission specifically warned about potential abuse by sanctioned individuals seeking to evade travel restrictions, along with inherent risks of money laundering, tax evasion, and corruption.

The European landscape has changed accordingly, with several countries rolling back or abolishing their programs in recent years. Portugal, Ireland, and Austria have curtailed residence-by-investment schemes, while Cyprus and Malta have faced intense pressure over their citizenship-by-investment programs. The Netherlands also closed its investor visa program after low uptake – a precedent Luxembourg appears poised to follow.

In this context, Luxembourg's government seems to be preemptively addressing both reputational and legal concerns by aligning with the EU stance. A May 2025 client alert by Baker McKenzie notes that Luxembourg's "golden visa" regime, "though rarely used — is now under political scrutiny and could be subject to reform or repeal," particularly in light of the new Court of Justice ruling reinforcing that EU citizenship must not be treated as a tradable commodity.

Luxembourg officials have publicly acknowledged that discussions are underway regarding possible abolition of the investor residence permit. Any legislative change would likely involve either significantly tightening the criteria or completely ending new applications. If the scheme is abolished, existing permit holders would presumably maintain their status until renewal, but no new investors would be admitted.

As of March 2025, no formal law change has been enacted, but the policy trajectory appears clear: Luxembourg is moving to ensure its immigration and citizenship practices uphold the integrity of EU law and avoid controversies associated with investment migration programs.

For prospective applicants, this creates both urgency and uncertainty. The current window of opportunity may close in the near future, potentially making 2025 the final year to access this pathway. At the same time, increased scrutiny means applications face rigorous evaluation, with approval far from guaranteed even for qualified investors.

The Luxembourg Lifestyle: What to Expect as a Resident

Beyond the legal and financial aspects, understanding daily life in Luxembourg provides crucial context for those considering this citizenship pathway. After all, you'll be spending at least five years here if citizenship is your goal – making lifestyle compatibility essential to your success and satisfaction.

Luxembourg offers an exceptional quality of life that consistently ranks among the world's best. The country combines metropolitan sophistication with natural beauty, featuring both the charming capital city and verdant countryside dotted with medieval castles. Despite its small size (about 1,000 square miles), Luxembourg delivers diverse experiences and environments.

As one of the world's wealthiest nations, Luxembourg boasts outstanding infrastructure, public services, and healthcare. The public transportation system is comprehensive and efficient, with free public transport nationwide – an unprecedented policy that reflects Luxembourg's commitment to accessibility and sustainability. Healthcare standards are excellent, with universal coverage and minimal wait times for both emergency and specialized care.

Luxembourg's education system ranks among Europe's best, with free public education and a trilingual approach that teaches students in Luxembourgish, German, and French. International schools offering curricula in English and other languages provide additional options for expatriate families. The University of Luxembourg, though young, has rapidly developed a strong reputation, particularly in fields like finance, law, and computer science.

The multicultural nature of Luxembourg creates a uniquely welcoming environment for newcomers. With foreign residents comprising nearly 50% of the population and cross-border workers adding further diversity, Luxembourg functions as a genuinely international society. This cosmopolitan character means services, businesses, and even government offices regularly accommodate multiple languages, though learning Luxembourgish remains important for full integration.

Safety represents another significant advantage, with Luxembourg consistently ranking among the world's most secure nations. Crime rates are exceptionally low, political stability is unwavering, and the rule of law is firmly established. This creates peace of mind that's particularly valuable for families and those from less stable regions.

The culinary scene blends influences from neighboring France and Germany with distinct Luxembourgish traditions, creating a diverse gastronomic landscape that includes everything from Michelin-starred restaurants to cozy traditional establishments. The country also produces excellent wines along the Moselle River valley, with vineyard tours providing a delightful weekend activity.

Outdoor enthusiasts appreciate Luxembourg's extensive network of hiking and cycling trails, along with numerous parks and nature reserves. The Ardennes region in the north offers particularly spectacular landscapes for exploration. Cultural attractions abound as well, from historic castles and UNESCO World Heritage sites to contemporary art galleries and a vibrant performance scene.

The business environment combines entrepreneurial opportunity with work-life balance – Luxembourg's average working hours are lower than many competitive economies, while productivity remains high. The international business community is accessible and well-connected, creating networking opportunities across industries, particularly in finance, technology, and logistics.

The primary drawback for many newcomers is the high cost of living, particularly housing. Luxembourg City ranks among Europe's most expensive real estate markets, with rental and purchase prices that can surprise even those coming from major global cities. This is partially offset by high average incomes, but housing costs remain a significant consideration in your financial planning.

Weather represents another adjustment for some, with a temperate climate featuring cool, rainy conditions throughout much of the year. While extreme weather is rare, newcomers from sunnier regions sometimes find the gray winter days challenging.

Despite these considerations, Luxembourg's overall proposition remains compelling – a safe, wealthy, multilingual society at the heart of Europe, offering sophisticated urban amenities alongside natural beauty and historic charm. For those who value stability, quality of life, and European integration, Luxembourg presents an ideal environment not just for investment, but for creating a genuine home.

Application Process: Practical Steps and Timeline

The journey to Luxembourg citizenship through investment follows a clear sequence, beginning with the investor residence application and culminating in naturalization after five years. Understanding each step helps manage expectations and prepare effectively.

The first phase involves securing the investor residence permit through a two-stage process. Initially, you'll need to obtain approval for your investment project from the relevant ministry. Business investments (€500,000 options) require evaluation by the Ministry of Economy, while financial investments (€3 million or €20 million options) are reviewed by the Ministry of Finance.

This evaluation requires submitting a detailed business or investment plan for scrutiny. For business investments, authorities assess viability, job creation potential, and economic benefit to Luxembourg. For financial investments, the focus shifts to compliance, source of funds, and economic substance. Working with experienced local advisors during this preparation stage significantly improves your chances of approval.

After receiving ministerial approval, you'll apply for the actual residence permit through the Immigration Directorate. This application includes standard documentation: valid passport, criminal record certificate from your country of residence, proof of accommodation in Luxembourg, and evidence of health insurance coverage. You'll also need to verify that investment funds come from legitimate sources – part of Luxembourg's robust approach to preventing money laundering.

The processing time for this two-stage approval typically ranges from 4-6 months, though complex cases may take longer. Once approved, you'll receive a temporary residence permit valid for three years, allowing you to establish yourself in Luxembourg.

Within 90 days of approval, you must fulfill your investment commitment according to the approved plan. Authorities conduct a verification check within the first year to confirm compliance with investment conditions – a crucial milestone for maintaining your status. You'll also need to register with local authorities upon arrival, complete a medical examination, and establish genuine residence.

After receiving your permit, the integration process begins in earnest. You should start learning Luxembourgish immediately, as achieving the required A2 speaking and B1 listening proficiency typically requires sustained effort over multiple years. Various language schools and programs cater to newcomers, including government-subsidized courses designed specifically for integration purposes.

Similarly, planning for the civic integration requirement helps ensure you'll meet all citizenship criteria when eligible. The "Living Together in Luxembourg" course covers essential aspects of Luxembourgish society, history, and values. Alternatively, you can prepare for the equivalent examination if you prefer self-directed learning.

Throughout the residence period, you must maintain your investment according to the program requirements – typically for at least three to five years, depending on the investment option chosen. You'll also need to meet minimum physical presence requirements, though Luxembourg doesn't impose specific day counts like some countries. The expectation remains genuine residence, with your center of interests shifting to Luxembourg.

After completing five years of legal residence, with the final year uninterrupted, and fulfilling language and integration requirements, you become eligible to apply for naturalization. This application is submitted to your local commune and includes documentation proving you've met all conditions: residence certificates, language certification, completion of integration courses, and evidence of good character.

The naturalization decision typically takes 3-6 months following application submission. Upon approval, you'll participate in a citizenship ceremony where you'll take an oath and receive your citizenship certificate. This completes your journey from investor to full Luxembourg citizen, with all the rights and responsibilities that entails.

Throughout this process, professional guidance from immigration lawyers, tax advisors, and integration specialists can prove invaluable. The investor visa pathway, while straightforward in concept, involves numerous technical requirements and potential pitfalls. Expert support ensures you navigate these successfully while maximizing the benefits of your Luxembourg connection.

Conclusion: Is Luxembourg's Pathway Right for You?

Luxembourg's approach to investor immigration reflects its broader values – welcoming productive investment and international talent while maintaining the integrity of citizenship as something earned through genuine connection. This balanced philosophy has produced a program that, while more demanding than "golden passport" schemes, offers greater legitimacy and staying power.

The absence of a direct citizenship-by-investment option means Luxembourg isn't suitable for those seeking immediate nationality through financial contribution. The five-year naturalization timeline requires genuine commitment to becoming part of Luxembourg society – including learning the language and establishing real residence. This represents both a challenge and an opportunity, filtering for those truly dedicated to integration.

For the right candidates, Luxembourg offers extraordinary advantages. The economic environment combines stability, sophistication, and opportunity, particularly for those in finance, technology, and multinational business. The quality of life ranks among the world's highest, with excellent healthcare, education, and infrastructure. The central European location provides unparalleled connectivity, both physically and culturally.

The tax environment, while not offering special regimes for new residents, does provide significant advantages through its absence of wealth tax, favorable treatment of capital gains, and extensive treaty network. For business owners and investors, Luxembourg's ecosystem offers powerful tools for growth and wealth preservation within a fully compliant EU framework.

The current political climate creates both urgency and caution. The program's apparent trajectory toward reform or closure means the window of opportunity may be narrowing. At the same time, increased scrutiny means applications face rigorous evaluation, with authorities clearly willing to reject those raising concerns.

Financially, the program requires substantial commitment – from €500,000 for business investments to €20,000,000 for the deposit option. Unlike some competing programs, however, these funds remain your assets rather than becoming non-recoverable donations. The true cost lies in the commitment to establish genuine residence in a high-cost country for five years – a considerable investment of time and lifestyle adjustment.

For those seeking European citizenship through investment, alternatives exist but face similar pressures. Portugal has significantly restricted its golden visa program, while Malta's citizenship scheme faces direct EU legal challenges. Greece and Spain maintain residence programs but impose comparable or longer naturalization periods than Luxembourg, often with less favorable tax treatment.

The ideal candidate for Luxembourg's pathway is someone who genuinely values what the country offers beyond just its passport – someone seeking to participate in a sophisticated European economy, raise a family in a safe and multicultural environment, and become part of a society that prizes stability and quality of life. The program works best for those who can envision actually living in Luxembourg for the required period, rather than viewing residence as merely a technical requirement.

If you're considering this pathway, acting sooner rather than later seems prudent given the political signals. Working with experienced advisors familiar with Luxembourg's specific requirements significantly improves your chances of success. Most importantly, approaching this journey with realistic expectations and genuine openness to integration will make the experience rewarding beyond just the eventual citizenship it may provide.

Luxembourg's message is clear: while investment opens the door to residence, citizenship must be earned through authentic connection. For those willing to embrace this philosophy, the Grand Duchy offers a legitimate and respected path to European citizenship – one that withstands scrutiny and provides genuine belonging in one of the world's most prosperous and stable nations.