Luxembourg

Individual - Foreign tax relief and tax treaties

Last reviewed - 29 July 2025

Foreign 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.