½Û×ÓÊÓƵ

Luxembourg impatriate regime

Luxembourg offer an impatriate regime to attract highly qualified workers. It applies to those who begin working in Luxembourg after 31 December 2020, and the regime is available for eight years..

The tax provisions in Luxembourg for foreign employees working in Luxembourg from 1 January 2021 onwards can apply if all the specific conditions for the employee, the employer, and the salaried employment in Luxembourg are fulfilled.

The effect is that part of the employer's costs and expenses associated with the relocation of employees to Luxembourg are exempt from income tax and any social security contributions. Note that business travellers who do not become resident in Luxembourg do not qualify for the expatriate tax regime.

Employee conditions

The impatriate concession applies to employees who:

1. Ìý

   •ÌýÌýÌýÌý usually work outside Luxembourg

2. Ìý

   •ÌýÌýÌýÌý are assigned by a company located outside Luxembourg to perform an employment activity in a Luxembourg company or are directly recruited abroad by a Luxembourg company

3. Ìý

   •ÌýÌýÌýÌý are tax resident in Luxembourg

4. Ìý

   •ÌýÌýÌýÌý have their primary employment in Luxembourg