An agreement to allow German residents employed in Luxembourg to work remotely from their homes without suffering taxation penalties or losing social security status in the grand duchy has been extended until the end of June.

The agreement was launched to help companies in Luxembourg and employees in Germany during the first covid lockdown. Similar deals were struck with the authorities in France and Belgium. Both those countries had recently agreed with Luxembourg to extend the agreement until the end of June and now Germany has followed suit. It is estimated that around 50,000 commuters from Germany regularly travel across the border to work in Luxembourg.

Minister of finance Yuriko Backes said the extension agreement was good news for German commuters, who come into the country mainly from Rhineland-Palatinate and the Saarland. “My thanks go to the German government, with which we have cooperated so well in the covid crisis,” Backes said.