For those considering moving to Luxembourg
There are often a number of factors to consider when contemplating a new domicile. Taxes may be one of them. We can provide you with an overview of the most basic personal taxation rules in Luxembourg.
42
Marginal tax rate
0
Wealth tax
Overview of personal taxation in Luxembourg – updated per 2025
What is required to establish tax residency in Luxembourg?
Individuals who have their permanent place of residence in Luxembourg are considered to have moved there and to be tax residents.
Which types of income are taxable in Luxembourg?
Tax residents are taxed on their worldwide income in Luxembourg, while non-resident taxpayers are taxed only on income sourced in Luxembourg.
What tax rates apply in Luxembourg?
Luxembourg has a progressive tax system, with rates ranging from 8 to 42%. In addition, contributions to an employment fund apply at rates of 7 to 9% (depending on the level of income), as well as a solidarity surcharge of 1.4%.
Does Luxembourg grant tax credit for foreign taxes?
Luxembourg grants tax credit for taxes paid abroad, limited to the amount of Luxembourg tax payable on the same income. Foreign tax that exceeds the corresponding Luxembourg tax, and therefore does not qualify for a tax credit, may be deducted as an expense.
Is there wealth tax in Luxembourg?
Luxembourg does not have a wealth tax for private individuals.
What is the tax year in Luxembourg?
The tax year in Luxembourg corresponds with the calendar year.
When must the tax return be filed in Luxembourg?
The individual tax return in Luxembourg must be filed by 31 December of the year following the tax year.
What is the name of the tax authority in Luxembourg?
The name of the tax authority in Luxembourg is Administration des contributions directes (Luxemburg Inland Revenue).
How many countries does Luxembourg have tax treaties with?
Luxembourg has tax treaties with approximately 88 countries, including Norway.
Is there property tax in Luxembourg?
Luxembourg has property tax at municipal level. Rates range from 0.7 to 1% and are assessed based on the property’s unit value.
Contact
Atle Melø
Partner
amelo@melo.no
+47 951 80 979
Our tax partner in Luxembourg
Through our unique global partnership with BSP we are able to work together with local lawyers and advisers in questions regarding domestic tax rules and other legislation in Luxembourg.
