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🌐 Cross-border workers

Resident-equivalent status: what are the conditions?

Resident-equivalent status is a choice that, subject to conditions, allows a cross-border worker to be treated for tax purposes as a Luxembourg resident.

The main conditions

  • Reach the 90% threshold of income taxable in Luxembourg (or meet a specific alternative criterion depending on your country of residence).
  • Make the request as part of the tax return.
  • Provide supporting documents for all your income, including income received outside Luxembourg (used to calculate the tax rate).
What it changes

Once granted resident-equivalent status, you can deduct the same items as a resident: old-age provision, outstanding balance insurance, insurance premiums, interest… within the legal limits.

Watch out for side effects

Resident-equivalent status also means declaring your foreign income (for the rate calculation). Depending on your household and income, the benefit varies. It is not automatically advantageous: it needs to be checked case by case. We run this simulation with you, with no obligation.

General information, subject to legal and contractual conditions and your personal situation; to be confirmed with the ACD (Luxembourg tax authority) or a qualified professional.

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