The 21st century has been called the “age of migration” (Castles & Miller, 2009). International migration is a growing phenomenon, both in terms of scope and complexity and affects virtually all countries in the world (United Nations, 2009). The global migration system has changed over recent decades with regard to origins and destinations for migration. In the 20th century, Europe was a major area for emigration, but has now become a target for immigration, with most European countries, including Iceland, hosting significant minority immigrant populations. In Luxembourg, nearly half of the population is foreign – the foreign population percentage currently stands at 48%. Within this context majority and minority become fluid with the migration process itself being fluid, ranging from daily migration (transnational commuters), to medium-term stays, return visits and permanent immigration including uptake of citizenship. Within such a plurally composed society, culture contact is a permanent feature in daily life. Nationality becomes a salient feature as culture contact tends to prompt reflection, resulting in questioning and (re-)negotiation of national identity. This affects both the native and the diverse immigrant population – with diversity going beyond the level of country of origin as many individuals have very complex biographies. Using multicultural, multilingual Luxembourg as a case study example, I will present examples for the construal process of national identity for different groups, illustrating how (national) identity is negotiated at individual level. As can be expected, the identity construal process becomes more complex within a multicultural context.