21. Special cases

European Union Officials

Taxation of EU officials in Luxembourg

The salary paid by the European Union or any other European institution is exempt from tax in Luxembourg. Therefore, you do not need to declare this income in your Luxembourg tax return.

The case of “mixed” couples: EU official and Luxembourg employee

Married couples

By default, married couples can file a joint tax return in Luxembourg. In this case, the income of the employee of a European institution is exempt from tax and does not need to be declared. A certificate of employment from the European institution must be attached to the tax return to justify this exemption.

The couple may also claim joint deductions, for example for mortgage interest or insurance premiums.

If one of the spouses is a non-resident for tax purposes, the couple may apply for joint taxation on the basis of Article 3(d) L.I.R., provided that the criteria laid down by law are met (e.g. that the resident spouse receives at least 90% of the household's professional income in Luxembourg or that the net income taxable abroad is less than 13.000€).

Civil partners (PACS)

• Civil partners may file a joint tax return only if both partners are Luxembourg tax residents.

In the case of a joint return:

• The employee of a European institution must provide a certificate of employment stating their Luxembourg tax residence.
• If the EU institution employee is not a Luxembourg tax resident, only the partner employed in Luxembourg declares their income and claims deductions individually.

Joint tax return for mixed couples

If you are married or in a civil partnership (PACS) and you file a joint tax return (collective taxation), the salary paid by the European Union must not be included as taxable income.

You only need to attach to your tax return a certificate from the European institution (Commission, Parliament, CJEU, EIB, etc.) stating:

• your status as an EU official or agent,
• the start date of your employment.

This document serves to justify the exemption and ensures that the Luxembourg tax administration processes your return correctly.

Other income of EU officials subject to tax

Even though the base salary paid by the European Union is exempt, an EU official may still earn other income that remains taxable in Luxembourg:

• Bank interest, dividends, and capital gains on shares,
• Rental income from property located in Luxembourg (or abroad under certain conditions),
• Real estate capital gains and profits from shares or cryptocurrencies,
• Self-employment income, private pensions, or rental income from furnished property.