🇱🇺 Luxembourg tax

• On: Costs and benefits (relocation-related) paid by the employer under the 2021 version
• Who: Employee moved from abroad to work in Luxembourg
• Limit: €400k/yr ≈ $447k

From tax year 2021, Art. 115 no. 13b LIR exempts certain relocation costs and benefits borne by the employer for impatriates; a version applicable from tax year 2025 can be opted into irrevocably and, as announced by the government on 17 July 2024, replaces this with an exemption of 50% of annual gross remuneration capped at EUR400,000 (≈ $447,000). ^{1 2 3 4}

Taxed on

Costs and benefits (relocation-related) paid by the employer under the 2021 version; annual gross remuneration under the announced 50% exemption.

Who it applies to

• Employee moved from abroad to work in Luxembourg; employers keep a named list and report it to the RTS office by 31 January of the following year.
• Employees who opt irrevocably for the version applicable from tax year 2025 are listed to the RTS office by 31 January 2026.

Limits

• EUR 400,000 a year (≈ $447,000) · Cap on annual gross remuneration eligible for the 50% exemption, as announced by the government on 17 July 2024.

Visas

Independent of the residence permit; used by salaried and Blue Card workers.

Other taxes

Social security contributions are separate. The regime concerns employer-borne costs and remuneration, not a general exemption of foreign-source income. The 50% exemption and the EUR 400,000 (≈ $447,000) cap are taken from the government announcement of 17 July 2024. The enacted text and its conditions (how many years it lasts, earlier non-residence, minimum salary) were not read: the tax administration and Legilux sites could not be opened, last tried on 12 October 2026.

Checked against official sources on 12 Oct 2026, some details partly verifiedChange log