Towards More Equal Treatment Of Cross-border Workers

FROM 1 JANUARY 2024, GERMAN TAX RESIDENTS EMPLOYED BY A BUSINESS LOCATED IN LUXEMBOURG (AND VICE VERSA) WILL BE ABLE TO WORK REMOTELY FOR 34 DAYS PER YEAR.

On 6 July 2023, the governments of Luxembourg and Germany signed an amendment to the tax treaty aimed at avoiding double taxation and preventing tax evasion in relation to taxes on income and wealth.

The tax threshold for remote work has been increased from 19 days to 34 days for German residents employed by a Luxembourg business (and vice versa), under the scope of Article 14 of the double tax treaty relating to the taxation of income from salaried activities. This new threshold has also been extended to certain situations covered by Article 18 of the double tax treaty, which applies to remuneration received by public sector employees.