Explore the 2025 Edition of Our Personal Tax Guide

In 2025, Luxembourg reinforces its commitment to competitiveness and talent retention through a new wave of tax measures.

These updates are designed to attract young professionals, support mobility, and simplify compliance.
 

Key Highlights for 2025:

• New personal income tax brackets, reflecting recent inflation and aiming for more balanced tax contributions.
• Expatriate regime: Updated to enhance the country’s appeal to international talent.
• New premiums introduced: Prime Jeune – a financial boost aimed at young professionals entering the workforce, and Prime Locative – designed to help individuals manage rental costs.
• Increased ceiling for the prime participative, supporting innovative compensation models.
• Updated benefit-in-kind valuation for company cars, bringing more clarity and alignment with actual usage.
• Ongoing real estate measures focused on housing supply, construction incentives, and affordability.
• New digital reporting obligations: Certain declarations—such as those for directors’ fees—must now be submitted online, marking a shift towards more streamlined and secure processes.

Our newly released 2025 Personal Tax Guide provides a clear, visual overview of all the key changes, presented in an accessible and practical format. Whether you're an employee, employer, or advisor, this guide is your go-to resource to navigate the evolving tax landscape.