--- title: "Luxembourg tax for new residents 2026: rates and regimes" url: https://settleanywhere.com/countries/luxembourg/tax/ lang: en updated: 2026-10-12 --- # Luxembourg tax Special regime for new residents: Impatriate tax regime. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## Special regimes for new residents Special regime ### Impatriate tax regime for highly qualified and specialised employees Tax relief **Details** - 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). (sources 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 verified [Change log](https://settleanywhere.com/changes/) ## Standard rules and foreign-source income Standard rules ### Ordinary taxation of resident taxpayers on worldwide income Worldwide income **Details** - On: Worldwide income of resident taxpayers - Who: Resident taxpayers report all worldwide income Resident taxpayers in Luxembourg are subject to income tax on their worldwide revenues (domestic and foreign-source) and must report worldwide income, exempt and non-exempt, in their return; non-residents are taxed only on Luxembourg-source income unless they opt for resident treatment. (sources 5, 6) #### Taxed on Worldwide income of resident taxpayers; Luxembourg-source income (eight categories) of non-residents. #### Who it applies to - Resident taxpayers report all worldwide income, including income exempt under treaties, in the annual return. - Non-resident taxpayers may opt to be treated as residents for tax purposes and must then declare worldwide income. #### Visas Independent of the residence permit. #### Other taxes This record states the worldwide-income principle only. The rate scale, tax classes, employment-fund surcharge and social contributions are not in it; the tax administration pages could not be opened, last tried on 12 October 2026. Checked against official sources on 12 Oct 2026, some details partly verified [Change log](https://settleanywhere.com/changes/) ## VAT, social security and 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. - This record states the worldwide-income principle only. The rate scale, tax classes, employment-fund surcharge and social contributions are not in it; the tax administration pages could not be opened, last tried on 12 October 2026. ## Questions people ask ### Who qualifies for Impatriate tax regime? 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. Independent of the residence permit; used by salaried and Blue Card workers. ≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated. **Sources (6)** ## Official sources 1. [Impatriés (A a Z)](https://impotsdirects.public.lu/fr/az/i/impatries.html) · Administration des contributions directes, Luxembourg · checked 2026-10-10 · published 2025-01-29 2. [Newsletter 24 January 2025: regime des impatries](https://impotsdirects.public.lu/fr/archive/newsletter/2025/nl24012025.html) · Administration des contributions directes, Luxembourg · checked 2026-10-10 · published 2025-01-24 3. [Fiscal package of 17 July 2024 (Entlaaschtungs-Pak)](https://gouvernement.lu/fr/actualites/toutes_actualites/communiques/2024/07-juillet/17-roth-paquet-fiscal.html) · Government of Luxembourg · checked 2026-10-10 · published 2024-07-17 4. [Legislation 2025 (direct taxation)](https://impotsdirects.public.lu/fr/legislation/legi25.html) · Administration des contributions directes · checked 2026-10-11 5. [The income tax return for natural persons (taxation by assessment)](https://guichet.public.lu/en/citoyens/fiscalite/declaration-impot-decompte/activite-professionnelle/declaration-revenus/declaration-impot.html) · Guichet.lu, Government of Luxembourg · checked 2026-10-10 6. [Certificate or confirmation of tax residence](https://guichet.public.lu/en/citoyens/fiscalite/declaration-impot-decompte/certificats-attestations/demander-certificat-residence-fiscale.html) · Guichet.lu, Government of Luxembourg · checked 2026-10-10