Luxembourg
Individual - Foreign tax relief and tax treaties
Last reviewed - 22 August 2024Foreign tax relief
Foreign income received by residents that is subject to a tax equivalent to Luxembourg income tax and is not exempted by a DTT is granted a tax credit; any non-imputable tax in excess is deductible as a tax-deductible expense.
Tax treaties
Luxembourg has signed 88 DTTs, most of which include provisions of article 26.5 of the Organisation for Economic and Co-operation Development (OECD) model agreement on exchange of information between tax authorities.
Luxembourg is part of the European Union (EU) Regulations 1408/71 and 883/2004 (as amended) governing coordination of social security systems. In addition, Luxembourg has entered into 41 social security bilateral agreements.
Countries with which Luxembourg currently has DTTs:
Andorra | Ireland, Republic of | San Marino |
Argentina | Isle of Man | Saudi Arabia |
Armenia | Israel | Senegal |
Austria | Italy | Serbia |
Azerbaijan | Japan | Seychelles |
Bahrain | Jersey | Singapore |
Barbados | Kazakhstan | Slovak Republic |
Belgium | Korea, Republic of | Slovenia |
Botswana | Kosovo | South Africa |
Brazil | Kuwait | Spain |
Brunei | Laos | Sri Lanka |
Bulgaria | Latvia | Sweden |
Canada | Liechtenstein | Switzerland |
China, People's Republic of | Lithuania | Taiwan |
Croatia | Macedonia | Tajikistan |
Cyprus | Malaysia | Thailand |
Czech Republic | Malta | Trinidad and Tobago |
Denmark | Mauritius | Tunisia |
Estonia | Mexico | Turkey |
Finland | Moldova | Ukraine |
France | Monaco | United Arab Emirates |
Georgia | Morocco | United Kingdom |
Germany | Netherlands | United States of America |
Ghana | Norway | Uruguay |
Greece | Panama | Uzbekistan |
Guernsey | Poland | Vietnam |
Hong Kong | Portugal | |
Hungary | Qatar | |
Iceland | Romania | |
India | Russia | |
Indonesia | Rwanda |
New framework agreement on social security position of cross-border teleworkers in the European Union
An EU framework agreement on the determination of the applicable social security scheme for certain cross-borders teleworkers within the European Union was published in June 2023. This framework agreement aims to introduce a more permanent arrangement to determine the social security position of cross-border teleworkers in the European Union as of 1 July 2023. More specifically, the framework agreement provides for a system (on the basis of article 16 of Regulation (EC) no. 883/2004 on the coordination of social security systems) whereby, when adopted by the member states involved, teleworking in an employee’s residence state will, if a number of conditions are met, not be taken into account for the determination of the applicable social security scheme if it accounts for less than 50% of their working time.
The principles of the framework agreement only apply when the member states involved in a given situation have both signed the agreement.