Luxembourg
Individual - Foreign tax relief and tax treaties
Last reviewed - 29 July 2025Foreign 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 94 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. 86 DTTs are in force and 8 have been signed - not yet in force: Albania, Argentina, Cape Verde, Colombia, Ghana, Kuwait, Montenegro, and Oman. The DTT with Kyrgyzstan has not been signed yet.
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 in force:
Andorra | Isle of Man | Senegal |
Armenia | Israel | Serbia |
Austria | Italy | Seychelles |
Azerbaijan | Japan | Singapore |
Bahrain | Jersey | Slovak Republic |
Barbados | Kazakhstan | Slovenia |
Belgium | Korea, Republic of | South Africa |
Botswana | Kosovo | Spain |
Brazil | Laos | Sri Lanka |
Brunei | Latvia | Sweden |
Bulgaria | Liechtenstein | Switzerland |
Canada | Lithuania | Taiwan |
China, People's Republic of | Macedonia | Tajikistan |
Croatia | Malaysia | Thailand |
Cyprus | Malta | Trinidad and Tobago |
Czech Republic | Mauritius | Tunisia |
Denmark | Mexico | Turkey |
Estonia | Moldova | Ukraine |
Ethiopia | Monaco | United Arab Emirates |
Finland | Morocco | United Kingdom |
France | Netherlands | United States of America |
Georgia | Norway | Uruguay |
Germany | Panama | Uzbekistan |
Greece | Poland | Vietnam |
Guernsey | Portugal | |
Hong Kong | Qatar | |
Hungary | Romania | |
Iceland | Russia | |
India | Rwanda | |
Indonesia | San Marino | |
Ireland, Republic of | Saudi Arabia |
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.