Measures on telework for cross-border workers

Taxation

As part of an agreement concluded with France on 1 October 2022 to permanently increase to 34 the total number of days of teleworking allowed to French frontier workers without being subject to French income tax, the Luxembourg Parliament has unanimously ratified the signature of the amendment to the Luxembourg-France double tax treaty, which will include the provisions of this agreement into the treaty. The amendment to the Luxembourg-France double tax treaty will become retroactively effective as of 1 January 2023.

A similar agreement was concluded with Belgium on 20 October 2022, which will also be part of the Luxembourg-Belgium double tax treaty but with retroactive effect from 1 January 2022.

On 6 July 2023, Luxembourg and Germany entered into a similar agreement increasing the maximum number of teleworking days from currently 19 days to 34 days per year as from 2024.

Social security

In principle, an employee resident of a Member State working for an employer established in another Member State and who performs more than 25% of his working time/pay in his country of residence, is subject to the social security system of his country of residence.

On 5 June 2023, Luxembourg's Minister for Social Security, Claude Haagen, signed a new agreement, which raises the 25% limit to 50% per year. However, this agreement only applies if the governments of both countries have signed it. So far, Germany and Belgium have already signed it. However France, has "not yet taken a decision", according to the Minister. The agreement entered into force on 1 July 2023 for an initial period of five years.

On 20 June 2023, the Luxembourg government published on its website a "declaration of cross-border telework from 1 July 2023" providing some details regarding the conditions to be met and the formalities to be fulfilled in order to  benefit from the application of the agreement.