Taxes

4 stories

Finance
Cross-border workers
Frontalier taxes in Luxembourg: the 90% rule and the remote-work day limits explained
Nearly half of Luxembourg's workforce commutes from France, Belgium or Germany. These frontaliers are taxed at source in tax class 1, but can opt for resident assimilation to unlock class 2 and deductions if 90% of household income is taxed in Luxembourg (50% for Belgians). A separate 34-day limit governs how many home-working days stay tax-free; social security uses yet another rule, allowing up to 49% remote work.
By Pierre Hansen5 June 2026
Finance
Personal finance
How to file an income tax return in Luxembourg
Many Luxembourg residents and non-residents must file a full income tax return on the modèle 100 form. Filing is mandatory if taxable income tops 100,000 euros, if non-withheld income exceeds 600 euros, or if combined salaries exceed 36,000 euros. For the 2025 tax year the return can be filed from 7 April 2026 to 31 December 2026, online via MyGuichet.lu or on paper. Those only seeking a refund can instead request an annual adjustment (décompte annuel).
By Luc Bertemes4 June 2026
Finance
Homeownership explained
How to buy a property in Luxembourg: the process, costs and notary
Buying a home in Luxembourg follows a clear path: a bank pre-approval, a signed offer, a binding compromis de vente, then the notarial deed (acte notarié) that transfers ownership. On top of the price, expect registration and transcription duties of roughly 7% plus a notary fee of around 1%. The Bëllegen Akt tax credit of up to EUR 40,000 per buyer and the 3% VAT on building cut those costs. There are no restrictions on foreigners buying.
By Luc Bertemes3 June 2026
Finance
Housing finance
Luxembourg's 3% Super-Reduced VAT for Building or Renovating a Main Residence, Explained
Luxembourg's "TVA logement" scheme cuts VAT to a super-reduced 3% (instead of the 17% standard rate) on building or renovating a dwelling used as a principal residence. The benefit is capped at €50,000 of VAT per dwelling. Claim it by direct application (the contractor invoices at 3% after AED approval) or by reimbursement of the difference afterwards via the AED. The home must be a main residence for at least two years. Separate from the Bëllegen Akt purchase credit.
By Pierre Hansen1 June 2026

Frontalier taxes in Luxembourg: the 90% rule and the remote-work day limits explained

How to file an income tax return in Luxembourg

How to buy a property in Luxembourg: the process, costs and notary

Luxembourg's 3% Super-Reduced VAT for Building or Renovating a Main Residence, Explained