Taxes & Insurances for cross border workers

Taxes &  Insurances for cross border workers

It is generally interesting to have a job in Luxembourg and to live in France, where life is cheaper.

Luxembourg's regulatory and tax system is particularly advantageous for companies.

Border residents can benefit from very attractive tax deductions on various insurance products.


What tax for cross border workers?

Do you live in France and work at Luxmbourg ?
As a frontier resident in France, your wages are taxable in Luxembourg.
Salaries are subject to employer-driven withholding tax based on your tax class and your basic fee schedule.
The website of the Luxembourg tax authority allows you to evaluate the amount of your withholding tax according to your situation.
The Luxembourg tax deduction calculator is available here:

Steps to be taken

The tax deduction sheet is issued automatically by the Luxembourg tax authorities following any affiliation of an employee by an employer with the Luxembourg Social Security Joint Center.
Depending on your situation and the amount of your income, it may be necessary to make a tax return in Luxembourg.
The tax declaration in Luxembourg The declaration is obligatory when the frontier worker has been employed in the Grand Duchy for more than 9 months and carries on a continuous activity during this period or if at least half of his income is collected in Luxembourg. Warning. In some cases, the tax return is optional.
The tax return form can be downloaded here: 

Tax declaration in France

Frontier workers must declare each year to the French administration their income collected in Luxembourg by means of the declaration of income (form n ° 2042) and the supplementary declaration form n ° 2042C.  
These forms are available here:
The French community settled in Luxembourg is estimated at around 34,000, while they are close to 80,000 commuters
These agreements, moreover, are not the same from one country to another.
For example, a Belgian border worker living with a spouse who works in Belgium has more interest in filing a tax return than a French border worker living with a working spouse in France.

For cross-frontier workers

Contrary to popular belief, not all cross-frontier workers fall under the same taxation regime.

Deductible expenses for single people are practically the same for all cross-frontier workers.

Are you in a relationship? The total tax liability of your partner depends on their nationality.

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