Posted on 26 August 2024
Tax declarations for cross-border workers: The complete guide for 2023
Are you a cross-border worker in Luxembourg? Discover how to do your tax declaration for the year 2023. Follow our guide to understand the different steps and specific tax obligations.
If you work in Luxembourg, but you reside in a neighbouring country, such as France, Belgium or Germany, you are considered a cross-border worker. As a cross-border worker, your tax obligations may be a little more complex than those of Luxembourg residents. This guide explains how to file your tax return in Luxembourg in 2023 if you are a cross-border worker.
Tax Assimilation of Non-residents
Non-resident taxpayers may request to be assimilated to Luxembourg tax residents under certain conditions. This assimilation allows them to benefit from the same tax advantages as Luxembourg residents, particularly in terms of tax reductions.
Conditions for the assimilation:
- 90% of income in Luxembourg: Cross-border workers have to produce 90% of their yearly income in Luxembourg, which is verified individually for each spouse of partner.
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Foreign income lower than 13.000€: The sum of the net income not subject to tax in Luxembourg must be less than 13.000€ annually.
Additionally, Belgian residents whose household professional income is taxable in Luxembourg for more than 50% can also apply for this assimilation.
How taxx.lu facilitates the tax declaration for cross-border workers
The platform taxx.lu allows non-resident taxpayers to verify automatically whether they meet the conditions for being assimilated to tax residents. Here’s how it works:
- The Adding of Income: The taxpayer combines all their income, Luxembourgish as well as foreign, on the website.
- Automatic Verification: taxx.lu automatically verify if an assimilation is possible.
- Autofill: If the conditions are met, the request for assimilation is generated automatically by the platform, therefore simplifying the process.
Calculation of the tax rate
Once the assimilation is requested, the Luxembourgish tax administration adds the global income (Luxembourgish or foreign) in order to determine a global tax rate. This rate is then applied only to the taxable income in Luxembourg, whereas foreign income remains tax-free in Luxembourg.
Advantages of the Tax Assimilation
As a resident-assimilated taxpayer, you can:
- Profit of the same tax deductions as residents, such as deductions for children, interests on mortgages, or social security contributions.
- Optimise your tax situation by reducing your tax burden thanks to additional deductions.
For more details and to start your tax declaration as a cross-border worker, consult taxx.lu and take advantage of all the facilities offered by our intuitive platform.
