Personal taxation · Luxembourg
German cross-border workers: Luxembourg tax coordination
The file of a cross-border worker living in Germany must combine the Luxembourg treatment with the treaty rules applicable to each type of income. Places of work, foreign income and household options can change the analysis; preparation in the two countries must be kept distinct.
Financial Services Luxembourg · Licensed accountant · Head of the firm: Mickaël LOC. Editorial update: .
Start from the treaty and the type of income
Private-sector salary, public-sector pay, a pension and rental income do not necessarily follow the same rule. Identify the category before looking for the country of taxation. The bank account or the language of the contract does not determine this category.
The Luxembourg Inland Revenue (ACD) publishes the German treaty and the applicable amending protocols. Use the version that corresponds to the year of the file, without automatically applying an old teleworking tolerance.
Working days and documents
For private employment within the ordinary scope, the tax tolerance mentioned by the ACD is 34 days for German residents since 2024. Working days abroad must be tracked; exceeding the threshold does not only affect the days beyond it. The German treaty also includes a 30-minute tolerance: a very short activity at home is therefore not treated like any fraction of a day. On-call duty and assignments require their own checks.
A tax day count does not settle social security affiliation. Requests to the employer and to the CCSS, activity in several States and a possible A1 certificate require a separate analysis.
- Payers' certificates and a calendar of work locations.
- German income and your spouse's income relevant to the calculation.
- Decisions and returns already issued or filed in both States.
Assimilation and rate effect
The Belgian rule based on more than 50% of household income must not be applied to a German resident. Examine the general routes to assimilation to resident taxpayers, then the effect of foreign income and the couple's options.
Fictitious example: the employee works mainly in Luxembourg, while the spouse receives a German salary. The right to request assimilation and the rate calculation are two separate steps.
Scope of the support
A Luxembourg engagement does not automatically include a German tax return. The quote specifies the preparation, filing and correspondence covered. Coordination with a German professional is defined according to your needs.
The firm’s other tax engagements
Depending on your situation, the firm also handles tax, VAT and payroll, the regularisation of late tax filings and assistance during a tax audit. Fees are listed in the firm’s fee grid.
Official sources and scope
- ACD: tax treaties in force
- ACD: questions from non-resident taxpayers
- CCSS: remote work framework agreement and A1 certificate
- ACD: German tax treaty and 30-minute tolerance
The rules apply to the year and profile concerned. Examples flagged as fictitious explain a method; they are not an individual validation. The documents and options of your file are covered by a separate engagement.