POLITICS & INSTITUTIONS - POLITICS

Tax agreement

Teleworking extended for German cross-border workers



Just under 50,000 German residents work in Luxembourg. Photo: Shutterstock

Just under 50,000 German residents work in Luxembourg. Photo: Shutterstock

An agreement has been reached between Luxembourg and Germany to extend the tax exemption for teleworking days until 31 December. Just under 50,000 German residents work in Luxembourg.

The Luxembourg Ministry of Finance made the news official on Monday morning: an agreement has been reached to extend the freeze on teleworking days for German residents until 31 December.  They continue to be able to work from home as much as they can without the risk of having to pay taxes in Germany.

Under normal circumstances, German residents are entitled to 19 days of teleworking while remaining taxed in Luxembourg.

A social security agreement had already been reached earlier this year.

This quota had been frozen due to the health crisis, with the agreement between the two countries being tacitly extended each month.

The new agreement extended the measure, but more importantly, set a time limit.

Finance minister Pierre Gramegna (DP) said he was pleased with the agreement for "German commuters and their Luxembourg employers" who "continue to have the flexibility and planning security they need to fight the pandemic together".

According to Statec figures, 49,796 German residents were working in Luxembourg in the first quarter of this year. This is more than the Belgians (49,023), but significantly less than the French (110,195).

This story was first published in French on Paperjam. It has been translated and edited for Delano.