Luxembourg Personal Tax Services
Despite it's small size, Luxembourg hosts a wide variety of individuals with unique tax situations including a large number of non-residents crossing the border each day to work, EU officials, Luxembourg residents working outside of Luxembourg and local resident workers. Filing a tax return is not mandatory in all cases but filing a voluntary return is possible to generate a tax refund. In addition, many foreign nationals living and working in Luxembourg will maintain some non-Luxembourg income such as property rental or investment income.
At Analie Tax, by understanding each of our clients' unique circumstances we ensure that we determine which are the most beneficial elections to claim on the Luxembourg tax return. Not only do we have the technical knowledge to get it right, but we also make the process simple and straightforward.
We offer the following services:
Luxembourg tax return preparation
Filing a tax return is not mandatory in all cases. We will help you determine whether you have a mandatory filing obligation, or whether a voluntary filing obligation is possible to generate a tax refund. In all cases we will work with you to optimise your taxes and prepare a complete and accurate submission.
Copropriete (joint property) returns
For individuals who jointly own property, a specific tax return is required to be filed to determine the total income from the property and how this is allocated to each part owner. Common examples include inherited property owned by siblings or a rental property owned by an unmarried or non-resident couple.
Tax card request
Payroll withholding taxes are levied based on the information indicated on your tax card. Where tax cards are incorrect or you have a change in status (e.g. marriage) we can assist in filing the requests to obtain an updated tax card to correctly reflect your situation.
Non-resident proxy service
While the Luxembourg tax office will send correspondence to a non-Luxembourg address it is considered to be received and therefore lost or delayed mail often results in interest or penalty charges which cannot be abated. The Luxembourg tax office request that non-residents maintain a Luxembourg mailing address so we offer a proxy service where all correspondence can be sent to us at our Luxembourg address and we then liaise with you regarding any actions required.
Certificate of residence
Where individuals have income arising outside of Luxembourg and are required to file tax returns in the foreign country, they may be required to show proof of residence in Luxembourg. We can assist in preparing the request to the tax office to issue certificates of residency based on your current position and tax filing status.
Delinquent tax filings
Forgot to file prior year returns? Didn't report all your income? We can assist in reviewing your historic position and preparing the required historic tax returns that should be filed with the Luxembourg tax authorities. Until 31 December 2017, the Luxembourg tax office offer a voluntary regularisation process for resident taxpayers to file amended tax returns with a 20% penalty charge being levied.
Non-residents and cross-border workers
Non-residents working in Luxembourg can, under certain conditions, be treated as residents. In the 2017 tax reform, the Luxembourg tax authorities indicated that they will bring the tax filing obligations for non-residents closer in line with the obligations for residents. In practice this will mean tax returns will be required in an increased number of cases. As a non-resident, if you spend time working outside Luxembourg on business or from home, your situation requires careful analysis to ensure accurate reporting in both Luxembourg and your country of residence. Failure to do so could result in double taxation of income and a lengthy/costly process to reclaim any double taxes paid. We can guide you through this complex area of taxation, assist in preparing the Luxembourg tax return and work with your tax provider in your country of residence to ensure consistent reporting of income in both jurisdictions.
Changing career path
Leaving the employment world and setting out as an entrepreneur requires a clear understanding of the tax and social security implications of the various options available to you. Whether working as a freelancer or setting up a Company or Partnership, we can advise on the tax and social security consequences of each option and the differences between them. We can assist you in understanding what registrations are required, when payments are due and, perhaps the most important, establishing your net income.
Purchasing real estate
The Luxembourg tax system provides a number of tax deductions when you own and occupy your main residence or purchase a property you intend to use as a rental business. In particular, a deduction is available for certain qualifying costs incurred between ownership and first occupation. Whilst there are a number of conditions and limits to be aware of, the tax benefits can be significant. This is a complex area that requires careful analysis and reporting and we are able to guide you through this and assist in making the claims on your tax return.
Moving to Luxembourg?
Considering a move to Luxembourg? Been offered a new job in Luxembourg? The tax system in Luxembourg is quite complicated and your net income position can vary significantly depending if you will live in Luxembourg or in one of the neighbouring countries, if you are married, if you have children or if your spouse will work etc. Understanding what tax class will apply and what your net income will be based on the existing offer is paramount to taking the decision to accept the position and relocate. We can assist in running estimates of your net income under various scenarios to enable you to make an informed decision.
Expatriate tax regime
Introduced in 2011, the expatriate tax regime aims to attract highly skilled workers to Luxembourg. Under the regime it is possible to obtain a number of tax free benefits including housing and school fees. There are a number of conditions to be met by both the employer and the employee so the application of the regime is on a case by case basis. At Analie Tax, we can assist in structuring remuneration packages to optimise benefits under the regime as well as ensuring taxpayers are aware of the impact the regime has on their personal tax position.