Tax regime for highly qualified employees

• What is the impatriate tax scheme for highly skilled workers in Luxembourg and how can you benefit from it?

  The impatriate tax scheme is a benefit for highly qualified employees coming to work in Luxembourg from abroad. It makes taxation more attractive for internationally recruited individuals who relocate to Luxembourg for their job. How to benefit from it: Your employer must apply this scheme in your contract and on your payslips (withholding tax). The company usually notifies the tax authorities so that the scheme is applied. You must remain a Luxembourg tax resident during the period tFew readers

• Is the impatriate scheme automatic or does it require an application (tax regime for highly skilled workers)?

  The impatriate scheme is not automatic: it must be applied by the employer.Few readers

• Are salaries earned before my arrival in Luxembourg taxable (expat)?

  Foreign income you earned before becoming a Luxembourg tax resident is not taxable in Luxembourg. It remains taxable in the country where you were living and working at that time. However, even though it is not taxable in Luxembourg, this foreign income must still be declared in your Luxembourg tax return. Luxembourg uses your total annual income to calculate your tax rate, which is then applied only to your taxable income in Luxembourg.Few readers

• What happens if I continue to receive a salary from abroad after my arrival in Luxembourg?

  If you keep receiving a salary from abroad after moving to Luxembourg, you need to declare it in your tax return. In many cases, international tax agreements can make this income tax-free to avoid being taxed twice.Few readers