Luxembourg
Individual - Foreign tax relief and tax treaties
Last reviewed - 02 January 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 86 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 | Russia |
Armenia | Isle of Man | Rwanda |
Austria | Israel | San Marino |
Azerbaijan | Italy | Saudi Arabia |
Bahrain | Japan | Senegal |
Barbados | Jersey | Serbia |
Belgium | Kazakhstan | Seychelles |
Botswana | Korea, Republic of | Singapore |
Brazil | Kosovo | Slovak Republic |
Brunei | Kuwait | Slovenia |
Bulgaria | Laos | South Africa |
Canada | Latvia | Spain |
China, People's Republic of | Liechtenstein | Sri Lanka |
Croatia | Lithuania | Sweden |
Cyprus | Macedonia | Switzerland |
Czech Republic | Malaysia | Taiwan |
Denmark | Malta | Tajikistan |
Estonia | Mauritius | Thailand |
Finland | Mexico | Trinidad and Tobago |
France | Moldova | Tunisia |
Georgia | Monaco | Turkey |
Germany | Morocco | Ukraine |
Greece | Netherlands | United Arab Emirates |
Guernsey | Norway | United Kingdom |
Hong Kong | Panama, Republic of | United States of America |
Hungary | Poland | Uruguay |
Iceland | Portugal | Uzbekistan |
India | Qatar | Vietnam |
Indonesia | Romania |
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.