Luxembourg’s social security minister (LSAP) on 5 June signed the European agreement to who work in Luxembourg but live in Belgium and Germany. (France had not yet taken a decision, said the social security ministry.) As long as a Belgian or German resident works less than 50% in their country of residence, they can still remain affiliated with the Luxembourg social security system.
Taxation, however, is a separate issue. Contacted by Delano, the finance ministry said, “An agreement has been reached with France and Belgium on 34 days of home office.” Luxembourg’s finance minister Yuriko Backes (DP) and France’s finance minister Bruno Lemaire , and Luxembourg’s Chamber of Deputies .
“Luxembourg is in constant exchange with its neighbouring countries,” added the finance ministry. “We can confirm that negotiations are taking place on a revision of the double taxation agreement with Germany, including a possible adjustment of the 19-day threshold (the so-called “Bagatellgrenze”) for cross-border commuters.”
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The suspension of tax agreements with Belgium, France and Germany at the start of the covid-19 pandemic meant that cross-border workers working in Luxembourg could work from home for unlimited periods of time and not have to pay income tax in their country of residence--they would only pay income tax in Luxembourg. These tax agreements came .
For the moment, cross-border workers in Belgium and France can work from their home for 34 days per year before having to pay income tax in their country of residence, while cross-border workers living in Germany can telework for 19 days per year before having to pay income tax in Germany. The tolerance threshold last year was raised from 24 days to 34 days for Belgian residents, and from 29 days to 34 days for French residents, noted the finance ministry in a that highlighted the publication of its 2022 annual report.