Cross-Border Work in Luxembourg
Luxembourg has over 200,000 cross-border workers — more than half the country's workforce. The Greater Region (Luxembourg, Lorraine, Saarland, Wallonia, Rhineland-Palatinate) is the largest cross-border labour market in the EU.
Tax Treaty Overview
Luxembourg has bilateral tax treaties with France (1958, revised 2019), Belgium (1970), and Germany (1958). These treaties generally allocate taxing rights on employment income to the country where the work is performed — i.e., Luxembourg.
Remote Working Since COVID-19
Post-pandemic, remote working has become a major cross-border tax issue. Each treaty now has specific provisions for working days in the home country. Exceeding thresholds can trigger residence-country taxation on those days. France allows up to 29 days; Belgium has 34 days; Germany uses a proportional approach.
Social Security
Under EU Regulation 883/2004, workers are generally insured in the country where they work. Most frontaliers contribute exclusively to Luxembourg's social security system (CNS, CNAP, dependency).
FAQ
What is a frontalier?
A frontalier (cross-border worker) is someone who lives in one country and works in Luxembourg. There are over 200,000 frontaliers working in Luxembourg from France, Belgium, and Germany — more than the Luxembourg resident workforce.
Where do frontaliers pay income tax?
Under Luxembourg's tax treaties with France, Belgium, and Germany, employment income earned in Luxembourg is taxed in Luxembourg. The residence country receives information but generally does not re-tax that income (a tax credit or exemption applies).
What happens if I work from home as a frontalier?
Days worked remotely from your country of residence may be taxed in your country of residence, not Luxembourg. Each treaty has specific rules and day thresholds. France allows up to 29 days/year remote working. Always verify with a cross-border tax specialist.
Do frontaliers contribute to Luxembourg's social security?
Yes. As a worker in Luxembourg, you contribute to Luxembourg's social security system (CNS health, CNAP pension, dependency insurance) rather than your country of residence's system, in most cases.
Can frontaliers claim Luxembourg family benefits?
Coordination rules apply. Generally, family benefits are claimed from the country of employment (Luxembourg) first. Luxembourg offers generous allocations familiales (family allowances) and childcare subsidies.