Marriage

• How can I be taxed collectively if I am married?

  In order to be taxed collectively you must be married by 31 December of the tax year. On taxx.lu, you must indicate that you are married in the "Personal data" form. Then you can enter your spouse's details in the various forms.Some readers

• What is the tax impact of marriage in Luxembourg?

  What is the tax impact of marriage in Luxembourg? For married couples, the situation is not exactly the same, depending on whether you are a resident of Luxembourg or a non-resident. There is a difference in terms of the withholding tax levied on your monthly salaries: Residents On your monthly salary slips, one spouse will be taxed at tax class 2 and the other at the flat rate of 15%. When you prepare your tax return, tax class 2 will be applied to all household income. Non-resideSome readers

• How can I be taxed individually if I am married?

  If you want to be taxed individually, you must complete the tax return together and tick the relevant box on page 4. You must then both sign on the last page. NB: Such a simulation cannot be carried out on taxx.lu at the moment. Only collective taxation can be done on taxx.lu.Few readers

• After a divorce, do I need to make a joint or individual declaration?

  The period following a divorce is never easy, from both a personal and administrative point of view. Example 1 Lena and Cyril no longer get on. They have been living separated since 15 March 2022 and began divorce proceedings on 20 June 2022. AuthorFew readers

• What tax class am I in if I get married during the tax year?

  The marriage is backdated to 1 January of the tax year, which means that you can benefit from tax class 2 for the whole of the tax year.Few readers

PACS

• How can I be taxed collectively in a case of a partnership (PACS) ?

  Discover how to opt for collective taxation in the case of a partnership (PACS) in Luxembourg with our comprehensive guide.Some readers

• How can I be taxed individually in case of a partnership (PACS)?

  If you are in the case of a partnership but still wish to be taxed individually you must : Indicate "Single" as your civil status. Make two declarations (one for each person) Divide your loans, insurances, etc. (50% on one statement, 50% on the other)Some readers

• How to determine the most advantageous taxation for a partnership (PACS)?

  To find out which is the most advantageous form of taxation for a civil partnership (PACS), follow these steps: Run three free simulations on the taxx.lu website: First simulation : Select the civil status "PACS" and indicate all your household income and expenses. Second simulation: Select the "Single" civil status for one of the partners and indicate his or her income. Joint expenses should be divided by two. Third simulation: Select the "Single" marital status for the other partner andSome readers

• Do I need to have my PACS recognised in Luxembourg to file a joint tax return?

  In Luxembourg, the recognition of PACS (civil partnership) is not mandatory from a tax perspective for filing a joint declaration.   However, it can provide social benefits such as additional leave and a survivor's pension.   Recognition depends more on the desired social benefits than direct tax obligation.Few readers

• What are the tax implications of a partnership (PACS)?

  The fiscal impact of a life partnership (PACS) varies for tax purposes. Initially, partnered couples retain 'single' tax status (tax class 1 or 1a) on their monthly salaries, not transitioning to the more advantageous 'married' tax class 2. As a result, there's no immediate change in monthly salary taxes upon entering a life partnership. However, by jointly filing taxes, partnered couples can access benefits similar to tax class 2, similar to a married couple. Benefits of joint tax filing forFew readers

Mixed couples: resident and non-resident

• How do I apply for collective taxation if one is a resident taxpayer and the other a non-resident?

  If one spouse is a resident taxpayer while the other is a non-resident, they may file a joint return only if one specific condition is met. It is important that at least 90% of the household's professional income is earned during the tax year by the taxpayer resident in Luxembourg. If you meet this condition, you can declare your tax status under class 2. Here's how: You must uncheck the box in the "Personal data" category under "Fill in your spouse's contact information": (https://Few readers

• Is it possible to benefit from collective taxation in Luxembourg if your spouse is not resident?

  Yes, under certain strict conditions. A resident taxpayer may apply for collective taxation with his non-resident spouse, provided that the resident spouse earns at least 90% of the household's professional income in Luxembourg. Examples: Sarah lives and works in Luxembourg (income: €60,000). Her husband lives in Italy and receives a small pension of €3,000. 60,000 / (60,000 + 3,000) = 95% Result: Collective taxation possible. Sophie lives and works in Luxembourg (income: €70,000). HFew readers

Couples working in an EU institution

• How do you declare tax when one partner works for an EU institution and the other in Luxembourg?

  Tax filing depends on whether the couple is married or in a registered partnership (PACS), and on the tax residency status of the EU institution employee. For married couples: Married couples file a joint tax return by default in Luxembourg. The EU institution employee’s income is exempt from Luxembourg taxation and does not need to be declared as taxable income. A certificate of employment from the EU institution must be provided. The couple can claim joint deductions such as mortgage iFew readers

• 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: 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 yearFew readers

• What are the main tax differences between marriage and PACS in Luxembourg?

  Tax status of married couples For married couples, one spouse is taxed at tax class 2, and the other at a flat rate of 15% on their monthly payslips. For the annual tax return, tax class 2 is applied to all household income. Married cross-border couples are taxed at source at a flat rate and benefit from the tax class when they file their tax return. Tax status of civil union partners Initially, civil union partners will retain the tax status of "single" on their monthly payslips. UntilSome readers

• Can I make a joint declaration?

  You can file a joint return if : You were married (before or during the tax year) You were in a civil partnership from 01.01 to 31.12 of the tax year. Example:Few readers

• How can I determine whether a joint or individual tax return is more advantageous?

  To determine whether filing a joint tax return or an individual tax return can produce a more advantageous tax result, we recommend running simulations for each scenario. You will need to compare two individual returns with a joint return. To simulate an individual tax return, you need to enter your income on one return as a single person and your spouse's income on another return, also as a single person. These two individual declarations will be compared with a joint declaration, with yourFew readers

• What is my tax class?

  Your tax class depends on your personal situation. For residents : For non-residents :Few readers