Marriage

• 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 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

• 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

• 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

• 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 filingSome 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 otherSome 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

• 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

Divorce

• 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.Some readers

• Am I still considered married if the divorce takes place during the year?

  If you divorce during a tax year, you will be considered divorced for your tax return. For that year, you must file a joint tax return with your ex-spouse. For the following years, you will file an individual tax return. Please note that you will benefit from tax class 2 for the three years following the year of the divorce.Few readers

• Can I benefit from tax class 1a after a divorce?

  Yes, for the three years following the divorce, you will benefit from tax class 2. Afterwards, if you have children living in your household, you may qualify for tax class 1a.Few readers

• How should common tax deductions be allocated after a divorce?

  If, after your divorce, you still have tax-deductible expenses in common (for example, a mortgage), only half of these amounts can be deducted in each of the tax returnsFew readers

• How am I taxed in the year of my divorce in Luxembourg?

  In the year of the divorce, you must file a joint tax return, which will be the last one. You will therefore be taxed in tax class 2 on the income of both spouses. From the following year, you will be taxed separately, in tax class 1, for the three years following the divorce.Few readers

• Does the divorce decree need to be attached to the tax return?

  Yes. The divorce decree must be attached to your tax return. This allows the tax authorities to verify your family situation (divorce, effective date, child custody, any maintenance payments, etc.) and apply the relevant tax rules correctly.Few readers

• What happens after a divorce if I have dependent children?

  After a divorce, the child is attached to the parent who receives family allowances from Luxembourg.Few readers

• From when is a divorce taken into account for tax purposes?

  The divorce is effective from the year following the divorce. In the year of the divorce, a joint tax return must be filed.Few 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://Some 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

• 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

• 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

• 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

• What is my tax class?

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

• How can I change my tax class?

  To request a change of your tax class for your monthly salary, you should complete form 166.Few readers