WORKING IN LUXEMBOURG
503,302 (July 2009 est.)
Luxembourgish (national language), German (administrative language), French (administrative language)
Administration des contributions directes - www.impotsdirects.public.lu
Ministère de la Sécurité Sociale - www.mss.public.lu
Social Security & Tax System:
A stay of more than 6 months in Luxembourg will give you the status of resident. Residents are liable to pay taxes on their total income (employment income, income for property, dividends, etc) . Luxembourg has one of the highest tax rates in Europe.
Your tax card (fiche de retenue d'impôt) will indicate your tax class that is based in your personal situation in Luxembourg. This takes into account your marital status and other deductions to ensure you are on the correct tax band.
Over 15 tax brackets are utilized. They are taxed to a maximum of 38% + 2,5% of unemployment contribution.
Employment income and Social Security are withheld by the employer at source monthly and additional income is declared on an annual tax return.
Employee social security rates are as follow:
- 8% for pension insurance
- 2.95% for sickness insurance
- 1.4% for long term care, dependence insurance
Average Monthly Rent
|1 bedroom apartment||€1,200-1,250|
|2 bedrooms apartment||€1,500 - €1,800|
|3 bedrooms apartment||€2,000-€2,500|
Market prices of a studio (furnished or not) can start from 625 euro and a one bedroom apartment can cost from €850. Nevertheless salaries in this region tend to be high so living in Luxemburg can offer a high standard of living.
Opening a bank account in Luxemburg:
To open a bank account in Luxembourg you will need of your passport or other ID proof. A letter of reference from your previous bank or from your employer is helpful.
Working in Luxemburg:
Employees must apply for a tax card (carte d'impôt) which is issued by the local municipality of residence. This card contains all your personal details.