Posted on 26 April 2022

Cross-border commuters and their tax returns in Luxembourg

For some months now, cross-border commuters have been able to use taxx.lu to file their tax returns in Luxembourg.

Tax assimilation of non-resident taxpayers to resident taxpayers:

Non-resident taxpayers can be assimilated on request:

Who earn 90% of their income in Luxembourg (annually and individually for each spouse or partner)

Whose total net income not subject to Luxembourg income tax is less than €13,000.

Belgian resident taxpayers, who are taxed in Luxembourg on more than 50% of their professional household income, can also apply to be assimilated to residents.

taxx.lu automatically checks whether the non-resident taxpayer can be assimilated or not. You simply add all the income you have received in Luxembourg and abroad and if assimilation to the resident taxpayer is possible, taxx.lu will automatically fill in the assimilation request.

The tax authorities add up the Luxembourg income and the foreign income and subtract the deductible expenses to determine the tax rate. Then the administration applies the rate calculated on all income to the income taxable in Luxembourg only.
Foreign income is therefore in principle exempt from tax in the Grand Duchy.

As a resident taxpayer, you can benefit from the same deductions as a Luxembourg resident.

For more details see the following article:

https://guichet.public.lu/en/citoyens/impots-taxes/pension-rente/declaration-revenu-non-resident/assimilation-resident.html