If you are a cross-border worker, the 90% threshold is a key concept: it determines whether you can be treated as a Luxembourg resident-equivalent for tax purposes, and therefore access certain deductions.
The principle
You can request resident-equivalent status if at least 90% of your worldwide income is taxable in Luxembourg. Some special rules exist depending on your country of residence (specific provisions apply, for example, for Belgian residents).
Resident-equivalent status gives access to the same deductions as a resident (retirement savings, outstanding balance, interest…). This can change the outcome of your tax return — with no guaranteed figure: it all depends on your situation.
How is this threshold calculated?
We compare the share of your income taxable in Luxembourg with your total income. The calculation takes into account your household and precise technical rules. This is exactly the kind of check we do together: it is better to confirm your eligibility before filing.
What if I don’t reach it?
Without resident-equivalent status, you remain taxable on your Luxembourg income under different arrangements. We explain your concrete options depending on your country of residence.
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.