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# What is the tax assimilation of non-resident taxpayers to resident taxpayers?

Assimilation is a Luxembourg tax regime that allows certain non-residents to be taxed as residents, in order to benefit from the same tax advantages (deductions, allowances, tax classes).

###### An assimilated non-resident:
* is taxed on all of their income, like a resident;
* can benefit from tax deductions (loan interest, insurance premiums, special expenses, etc.);
* may have access to a more favorable tax class, notably tax class 2 for married couples.

###### Main conditions

Assimilation is possible if one of the following conditions is met:
* at least 90% of worldwide income of one of the taxpayers is taxable in Luxembourg;
* for Belgian residents, more than 50% of the household’s professional income is taxable in Luxembourg;
* annual net income not taxable in Luxembourg is below €13,000.
In all cases, foreign income must be declared, even if it is not taxed in Luxembourg.

###### Purpose
* To reduce taxes for cross-border workers (France, Belgium, Germany) whose main income comes from Luxembourg.
* To grant access to the same tax benefits as Luxembourg residents.