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Luxembourg Summary Guide

Luxembourg Residence

As Luxembourg is a member of the European Union, citizens of other EU countries can enter Luxembourg to live and look for work without the need for a work permit or visa – only a passport or identity card is required to be admitted to the country. Visitors can stay for up to three months for the purposes of tourism, family visits or a business trip provided they have produced the required ID upon entry to the country.

Citizens of the EU and their families, regardless of their nationality, do not require a residence permit to remain in the country, provided they have made a declaration of residency within three months of arriving; a residence permit is no longer mandatory if the declaration is completed within the timescale. The declaration applies to all members of a family, and once five years of uninterrupted residency has elapsed, an individual will have the right to remain in Luxembourg indefinitely.

Family members who are not EU citizens may still be required to provide certified documentation in the form of a current passport, a contract indicating the offer of employment and a marriage certificate (if applicable). All documentation must be provided either in French, German or English.

Non-EU/EEA citizens require a visa to enter Luxembourg. This must be applied for before departure. Additionally, individuals who are not citizens of the EU/EEA must obtain a work permit. Details required by the authorities to this end include a certified copy of a passport, copies of professional qualifications, CV, a letter confirming that a job is available, and a copy of the employment contract. It can take up to 12 weeks to process a work permit application.

It is possible for non-EU/EEA citizens to remain in Luxembourg for up to 90 days with a passport or ID card and a visa, but they are not allowed to carry out paid work during that time without permission. An individual wishing to stay for longer than 90 days must visit the Immigration Office to apply for a Residence Permit, stating the reasons for wishing to stay, or an application form should be submitted to the Ministry of Foreign Affairs (Directorate of Immigration) accompanied by a fee of EUR30.

 
 

Luxembourg Summary Guide Contents

 Luxembourg Summary

 Luxembourg Summary Chart

 Luxembourg Residence

 Taxation of Business People in Luxembourg

 Living and Doing Business in Luxembourg

 Business Forms in Luxembourg

Latest Comments

Expat Brit

Hi,

I am facing a dilemma and would like to invite any reader to advise me.

I am a Brit who has lived outside UK since 1993- initially in Belgium (5 years) & subsequently in 4 African countries. After a year outside UK, the UK Inland Revenue confirmed my status as ‘non-resident’ for tax purposes and as I have had no income in UK, I have not completed a UK tax return for many years. I visit UK very rarely, normally for one or two weeks per year.

In May 2011, I was made redundent by my employers, who were downsizing. This coincided with a move to retire in the Netherlands, where I now have official residency (my wife is Dutch). I thought that, at 63 years of age, I would be unlikely to find suitable employment; in fact, I have not tried hard and had resigned myself to permanent (but slightly premature) retirement.

However, to my surprise, I have recently been approached (through a mutual acquaintance) by a company that wishes to use my skills on a project in the Isle of Man. The role, if & when confirmed, would see me working for about 10 days a month in Isle of Man, with about 5-7 additional days per month, working from home. Contract will be for about two years. The firm has asked me to confirm if I would prefer to be paid (and therefore be taxed) in Netherlands or Isle of Man, the idea being that I create a self-employment entity for this employment. I have no data on which to base a response. Given Isle of Man's traditional ‘low tax ‘environment, are there any benefits to declaring an income in IOM? Are there any Isle of Man residency implications? Netherlands takes a tax cut on total world wide income, and, as I have never had any contact with the Dutch authorities, I am reluctant to start such a relationship now. Do I have to declare income in both countries, with a breakdown prorata to the time spent in each jurisdiction? Should I declare income to UK Inland revenue?

If anyone has pertinent advice on these points, I’d be grateful to hear them.

TJM @ Eindhoven, NL

T. Dog

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Jersey vs. Malta??

Hi, I live in South Africa, and along with 2 business partners (one in South Africa and one in Ireland - all South African citizens though) are setting up a company that designs Smart phone applications. As they will be sold on the various platforms (none of which operate out of South Africa)we have to list our company as operating out of Ireland anyway. As such, we have decided to set up our company in the best tax country and are wanting info on whether Jersey or Malta is best? If anyone has some inside info we would really appreciate it!! Thanks!Mary

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Purchasing investment-link insurance for my staff

Would that count as income tax to my staff? And would that count as expense to my company?Michael

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Irish crisis - effects on small business?

Hi all,

Just wondering if anyone 'on the ground', as it were, might be reading and able to help me...I was considering relocating my hairdressing business from the UK to Ireland before the economy started to go properly belly-up...now, not so much.

Are things as bad as they seem over there, or is it being over-hyped by the media? And is the government still keen to support small business people? Cos if not, I'll look elsewhere...

Thanks,Kate

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Living in France contracting to Australian company

I am moving full time to France in Jan 2012 where I will be working as a freelance contract engineer to a number of Australian based companies. It is my choice to move to France not a work requirement. I will be renting my house out in Austrlalia and renting a house while I am in France. I hold both EU & Austrlain citizenshiip. I am married with 2 young children. Approx total family income $100k AUD.
Do I pay tax in France or Australia or both ?
Any help or guidance would be much appreciated.France move

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