Working in Luxembourg : Luxembourg Income Tax

You can find the income tax rates for 2014 here, in relation to Luxembourg. This guide also covers the income tax base for residents and non-residents, allowable tax credits and deductions, the special expatriate tax regime, capital income tax rates and information on double-taxation treaties.

Income Tax Base For Residents and Non-Residents of Luxembourg

Residents of Luxembourg
are subject to personal income tax on their total income, from all sources worldwide.
Non-residents of Luxembourg 
are subject to personal income tax on sourced income from Luxembourg only.
Individuals will be regarded as tax residents if:
  • Their customary abode is in Luxembourg
  • Their center of economical interests is in Luxembourg

Income Tax Rates for 2014

Ammount %age
Income tax is withheld at source: 40%
From EUR 0 to 11,265 0%
From EUR 11,265 to 13,173 8%
From EUR 13,173 to 15,081 10%
From EUR 15,081 to 16,989 12%
From EUR 16,989 to 18,897  

14%
From EUR 18,897 to 20,805 16%
From EUR 20,805 to 22,713 18%
From EUR 22,713 to 24,621 20%
From EUR 24,621 to 26,529 22%
From EUR 26,529 to 28,437 24%
From EUR 28,437 to 30,385 26%
From EUR 30,385 to 32,253 28%
From EUR 32,253 to 34,161 30%
From EUR 34,161 to 36,069 32%
From EUR 36, 069 to 37,977 34%

From EUR 37,977 to 39,885

 36%
From EUR 39,885 to 41,793 38%
From EUR 41,793 to 100,000 39%
For EUR 100,000 and above 40%

Solidarity Surtax of 7% of taxes, or 9% for taxpayers earning more than EUR 150,000.

Allowable Deductions and Tax Credits

Subject to limitations, deductions are permitted for insurance premiums for life, accident, sickness; individual pension schemes; alimonies and annuities; childcare and housekeeping cost; charitable contributions; interest on personal and mortgage loans.

Special Expatriate Tax Regime

Luxembourg does not have a special expatriate tax regime for foreigners.

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
List of countries having a tax agreement with Luxembourg.
Withholding Taxes Dividends:
Dividends: 0/15%, Interest and Royalties: 0%
Bilateral Agreement
The United Kingdom and Belgium are bound by a double taxation treaty.

Filing Date

Tax returns are due by 31st of March of the following year..

Figures Based on Sources

Tax Authorities

Other Domestic Resources