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. 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! You also have to check your deductions on your tax card. The classical tax deduction is the commuting cost. But there is also other deductions. 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! After your first year in Luxembourg, you may be obliged to file a tax return. You can report to the page resident to know what the criteria are. If you have lived less than 183 days in Luxembourg, you will be considered as non-resident. If you are self-employed, 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.
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