Luxembourg Working Visas: Job Regulations and Requirements

Luxembourg, a founding member of the European Union, offers a plethora of opportunities for EU citizens seeking employment. As an EU national, the process of working in Luxembourg is relatively straightforward:

• No Work Permit Required: EU nationals generally don’t need a work permit to work anywhere in the EU, including Luxembourg. 

1. Extended Stay and Work

EU citizens can work in Luxembourg without any additional paperwork for an initial period of up to 3 months or 90 days. If you plan to stay and work in Luxembourg for more than 3 months, there are certain conditions to be met:

• Certificate of Residence: This document serves as proof of your legal residence in Luxembourg and is often required for various administrative procedures, such as opening a bank account, signing up for utilities, or accessing certain public services.

  Application Process:

  • Upon arriving in Luxembourg, you should declare your presence at the local commune (municipality) of your residence.
  • You’ll need to provide specific documents, including proof of identity (passport or ID card) and proof of residence (rental agreement, utility bill, etc.).
  • Once your application is approved, you’ll receive the certificate, which will be valid for a specific period, depending on your circumstances.

• Employment: If you’re employed, you’ll need to provide a copy of your ID card or passport and a work contract signed by both the employer and the employee.
• Self-Employment: EU citizens can also gain self-employed status in Luxembourg. This involves requesting a business permit from the Ministry of Economy. Certain professions and activities require this permit, and applicants must ensure they have a fixed physical establishment in the country.

2. How to Proceed After Arrival

• Declaration of Arrival: Within 8 days of arriving in Luxembourg, EU citizens must declare their arrival at the local commune administration. They should present a valid national identity card or passport, a family record book, and the children’s birth certificates.

• Registration Certificate: Within 3 months of arrival, EU nationals must fill in a registration certificate at the communal administration. After legally residing in Luxembourg for an uninterrupted period of 5 years, they can apply for a permanent residence permit.

3. Healthcare and Social Security

Luxembourg offers a high standard of healthcare services, and the social security system provides comprehensive coverage.

• Registration:

  • Upon starting employment in Luxembourg, you’ll be automatically registered with the Luxembourgish social security system.
  • Your employer will handle most of the registration process, deducting social security contributions directly from your salary.

• Benefits:

  • Being registered grants you access to healthcare services, including general practitioners, specialists, hospitals, and pharmacies.
  • The system operates on a reimbursement basis, where you pay upfront for medical services and then claim a refund from the social security system.

4. Taxation:

Understanding the tax system is crucial for anyone working and residing in Luxembourg.

• Income Tax:

  • Luxembourg has a progressive income tax system, with rates varying based on your income level.
  • If you’re employed, your employer will typically deduct tax at source, meaning they’ll withhold the necessary tax from your salary before you receive it.

• Filing a Tax Return:

  • Depending on your circumstances, you might need to file an annual tax return. This is especially true if you have multiple sources of income, deductions to claim, or other financial complexities.
  • The tax return will detail your income, deductions, and calculate the final tax owed or refund due.

• VAT and Other Taxes:

  • Apart from income tax, be aware of other taxes, such as Value Added Tax (VAT) on goods and services. The standard VAT rate in Luxembourg is 17%, but reduced rates apply to certain products and services.

5. Withdrawal of the Right to Reside

EU citizens and their family members maintain their right to reside as long as they don’t become unreasonably dependent on the social welfare system. If the right to reside is withdrawn due to dependency on the social welfare system, the citizen will receive a notice to leave the country.

Luxembourg offers a welcoming environment for EU citizens looking to work and reside in the country. By understanding and following the necessary procedures, EU citizens can ensure a smooth transition and integration into Luxembourg’s workforce and society.