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Luxembourg impatriate tax regime - Attractive changes as of 2013! | Brochure


From 1 January 2013, the conditions and procedure to benefit from a favourable tax regime for inbound employees have been relaxed. These changes are very attractive as they significantly expand the scope of the regime.

Aim of the regime

The aim of this favourable tax regime is to attract foreign, skilled workers to Luxembourg by providing significant tax savings for both impatriates and employers. This regime initially put in place in January 2011 through Circular LIR n°95/2, was amended on 21 May 2013 in a favourable way.

A summary of the conditions

Luxembourg impatriate tax regime - Attractive changes as of 2013!The regime applies to impatriates coming to Luxembourg, i.e.

  • Employees who are part of an international group and who are assigned to a Luxembourg office of the group
  • Employees directly recruited abroad

Employer conditions - the Luxembourg entity must employ or commit to employ at least 20 full-time employees in Luxembourg in the mid-term. If the entity has been established in Luxembourg for at least 10 years, the maximum percentage of employees benefiting from the regime cannot exceed 30% of the total number of employees.

The regime applies without prior agreement of the Luxembourg tax authorities. In terms of procedure, the employer is required to provide a report of the employees benefiting from the special regime at the latest by 31 January every year.

How Deloitte can help

Expense Details/limitations
Assessment of eligibility Initial assessment to establish whether the regime can apply for a particular expatriate or not
Analysis and recommendations Design/Amendment of the impatriate package and contractual arrangements to ensure that the conditions set by the Circular are met, and to maximise savings available through the regime
Assistance with payroll Assistance with the payroll to ensure a correct reporting of the impatriate package and applicable tax reliefs
Annual reporting Preparation of annual report to the tax authorities, including verification / confirmation that the conditions continue to be met

Why Deloitte?

Choosing Deloitte to work with you to implement the expatriate tax regime will mean a proactive reaction to the new legislation. Having a deep knowledge and experience of international mobility and foreign expatriate regimes, we are a step ahead in the understanding of this regime.

By working with us, you will be able to quickly make decisions about how to best implement the regime in relation to your expatriate population. Your expatriates will be informed about any implications on their personal tax affairs.

Rely on us to manage this change, maximise the potential savings and enhance your expatriate program.

This brochure is also available in Italian.

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