What are the tax obligations for couples where one partner is employed by an EU institution and the other receives a salary in Luxembourg?

For married couples or registered partnerships where one partner is an employee of an EU institution and the other receives a salary in Luxembourg, here are the relevant tax rules to be aware of:

1. Income of an employee of an EU institution:
   Income received by an employee of an EU institution is exempt from tax in Luxembourg and does not need to be included in the Luxembourg tax return. However, it is necessary to provide an employment certificate issued by the EU institution for the tax year concerned.

2. Declaration of the Luxembourg salary:
   Partners receiving a salary in Luxembourg must declare this income in the ‘Salary’ section of their tax return.

3. Tax deductions for the EU employee:
   Although the income of an employee of an EU institution is tax-exempt, he or she may declare deductible expenses (e.g. insurance premiums, mortgage interest, etc.) as part of the joint tax return with his or her employed partner. These deductions can reduce the total amount of tax payable by the couple.

4. Tax residency for employees of EU institutions:
   Employees of EU institutions must check their tax residency status. Even if they reside in Luxembourg, they may be required to declare their income in their country of tax residence and be subject to tax there, according to the legislation in force in that country.

Updated on: 27/06/2025