Taxation

9 stories

Finance
Pay and benefits
The 13th-month salary in Luxembourg: is it mandatory?
Many employees in Luxembourg expect a 13th-month salary, but there is no statutory right to one. It is owed only when written into your contract, provided by a collective agreement (CCT), or established as a binding company custom. The practice is common in banking, insurance, and healthcare. This explainer covers when a 13th month is genuinely due, how it differs from a gratification or a discretionary bonus, how it is taxed, and what you can claim if you leave mid-year.
By Luc Bertemes6 June 2026
Luxembourg
Cost of living
Your money in 2026: the changes hitting Luxembourg pay and prices
Salaries and pensions in Luxembourg rise 2.5% from 1 June 2026 as a new index tranche kicks in. The same year brings higher pension contributions (24% to 25.5%), a carbon tax up to €50 a tonne, a permanent Bëllegen Akt home-buyer credit, and the first moves toward a single tax class in 2028. Here is the full picture for your wallet.
By Marie-Anne Kayser31 May 2026
Greater Region
Cross-Border Work
Two ceilings, one commute: the telework rules for Luxembourg's frontaliers in 2026
Luxembourg's economy runs on cross-border workers - 231,519 of them, nearly half the salaried workforce. For 2026, two separate thresholds govern their telework: a 34-day-a-year tax tolerance, now identical for France, Germany and Belgium, and a separate social-security ceiling of just under 50%. Mixing them up can be expensive.
By Pierre Hansen30 May 2026
Opinion
Opinion: Cross-border workers
Luxembourg Is Losing the Telework Argument It Should Be Winning
France and Luxembourg again failed to lift the 34-day cap on tax-free teleworking for French cross-border workers at December's intergovernmental commission. France wants a 40% threshold plus revenue-sharing; Luxembourg offers only 25% and refuses retrocession. With talks pushed to late 2026, more than 120,000 frontaliers stay stuck on a rule that competitors abandoned years ago.
By Pierre Hansen23 May 2026
Politics
Budget 2026
Frieden Government Unveils €30 Billion Budget With Sweeping Middle-Class Tax Relief
Luxembourg's CSV-DP coalition presented a €30 billion budget on Monday that indexes tax brackets, cuts the surcharge, and pours €1.4 billion into housing — at the cost of a wider deficit through 2028.
By Julia Weber and Marie-Anne Kayser19 May 2026
Finance
Economy
Why Is Luxembourg So Rich? Inside the World's Wealthiest Country
Luxembourg's GDP per capita topped €146,000 in 2025 — the highest on Earth. Here is how a 2,586 km² nation of 681,973 people built its wealth, from 19th-century steel to 21st-century investment funds.
By Pierre Hansen5 May 2026
Europe
Tax
EU Finance Ministers Move to Tighten the Bloc's VAT Fraud Rules
ECOFIN is set to agree new rules on cross-border VAT fraud at its 4 May meeting in Brussels, the latest step in a decade-long effort to close the EU's largest tax-revenue leak.
By Marie-Anne Kayser4 May 2026
Finance
Innovation Policy
New 20% Tax Credit Aims to Channel Household Savings into Luxembourg Start-Ups
Individuals investing in qualifying start-ups will be able to claim a credit equal to 20% of their investment, up to €100,000 per year — a deliberate nudge to deepen Luxembourg's domestic risk-capital pool.
By Luc Bertemes15 April 2026
Europe
EU Law
CJEU Strikes Down Luxembourg's Tax Surcharge on Non-Resident Workers
On 12 March 2026, the Court of Justice of the European Union ruled that the surcharge applied to non-residents working in Luxembourg violates EU law — a decision with consequences for around 228,000 cross-border workers.
By Sophie Lentz12 March 2026