Employee or self-employed: here is what to do from a tax perspective when you move to Luxembourg.
tax class if you are married but your spouse does not live in Luxembourg
form to ask for a change of tax card
days: below this, you are considered non-resident
If you are an employee
When you move to Luxembourg, you need to register to the “commune” (the municipality).
You will automatically receive a tax card issued by the tax administration. It gives information, to your employer, on how to calculate the withholding tax on your salary.
What you need to do
- 1
Check your tax class. You need to check the tax card, especially the tax class. If you are married but your spouse does not live in Luxembourg, you will have class 1a. There are some ways to change it, contact us!
- 2
Check your deductions. The classical tax deduction is the commuting cost. But there are also other deductions.
- 3
Ask for a new tax card if needed. Usually if you are entitled to other deductions, you will need to ask the tax administration for a change of tax card. To proceed, you have to fill the form 164R. If you need help with that, you can contact us!
- 4
File a tax return if required. After your first year in Luxembourg, you may be obliged to file a tax return. If you have lived less than 183 days in Luxembourg, you will be considered as non-resident.
Even if your clients are abroad, you need to register your activity in Luxembourg. That means that you need to have a business permit, to be registered at the VAT and the social security. There is no withholding tax for the self-employed but given your expected turnover, the tax administration will ask you to pay some advances.
Why Galux
We help new residents check their tax card, file form 164R and prepare their first tax return.
Let's check your tax card together.
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