Employment in Luxembourg: work visa, labour market and taxes

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23 Sep. 2022

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Employment in Luxembourg: work visa, labour market and taxes

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Luxembourg

What you need to do to come to the country to work
Process for obtaining a work visa
Important subtleties
Taxes

Luxembourg, a small country in the heart of Europe, is famous for its economic stability and high standard of living. If you are considering employment in this country, it is important to understand the process of obtaining a work visa, the peculiarities of the labor market and the taxation system. Learn more about the employment procedure in Luxembourg

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The Grand Duchy of Luxembourg is one of the least populated countries in Europe, but its inhabitants have the highest GDP per capita in the world. Financial services are at the heart of the country's economy, and the transport and telecommunications industries are also performing well. The country is Europe's leading center for investment funds and private banking, making it a popular destination for foreign job seekers.

What you need to do to come to the country to work

Having an EU passport ensures that you do not need a work permit to work in Luxembourg. Along with residents, you can apply for any job. Foreigners who are not members of Schengen and the European Economic Area (and Switzerland) must obtain a work visa and a temporary residence permit.

The different types of work permits in Luxembourg include:

C: A short-term visa allows persons to stay in the Schengen area for 90 days continuously or in stages for a total of 90 days over 180 days. This visa is usually used for business trips, conferences, and meetings;
D: This visa is for foreigners who wish to travel to Luxembourg for more than three months for work, study, or permanent residence;
EU Blue Card: third-country nationals who wish to work for longer than three months can apply for an EU Blue Card. This type of visa requires a special procedure and provides certain benefits.

The potential employer has to prove to the national employment office that he/she has not found a suitable candidate locally and therefore wants to employ a non-EU national.

You then need to contact the Immigration Office to obtain a temporary residence permit in Luxembourg. You must do this before leaving your home country. The temporary visa will allow you to enter Luxembourg to complete the rest of the process upon arrival.

Process for obtaining a work visa

A long-stay visa must be applied for before the expiration of the temporary residence certificate. Applicants must submit the documents in person to the Luxembourg diplomatic or consular representation in their country or the Schengen area. Some requirements include:

two recent passport-format photographs proving the identity;
passport;
birth certificate;
a certificate of clean criminal record;
temporary residence permit.

In addition to the documents listed above, a fee of €50 is required to obtain a visa. The employee will then be granted a 'D' visa, which is valid for 90 days to one year.

Important subtleties

There are 102 municipalities in the state, and all residents, regardless of their country of departure, must register (make a declaration) with their municipality within a few days of arrival to stay longer than three months. This takes place at the municipality's Census Office. If they move from one municipality to another or leave Luxembourg for their new place of residence, this must be notified to the municipality.

Taxes

Emigrants must pay income tax on their earnings, regardless of whether they are employed or self-employed. Residents have to pay tax on their worldwide income, while non-residents only have to pay tax on income earned in Luxembourg.

Employees are assigned a tax threshold based on their marital status and permanent residence, which, together with their earnings, determines the amount of income tax they pay.

Ordinary taxpayers in Luxembourg make tax contributions on their salaries. However, they must submit a withholding tax declaration to the Administration of direct contributions (Administration des tributes directed – ACD) to ensure that they pay the correct amount. This is known as valuation taxation.

Igor Usyk - Head of Legal Department at Visit World

For safe relocation to Luxembourg, obtaining refugee status and employment, use the advice of an international lawyer. We help to solve complex and simple issues for your comfort and safety in Luxembourg.

Products from Visit World for a comfortable trip:

Checklist for obtaining a visa and necessary documents in Luxembourg;
Legal advice on immigration to Luxembourg;
Travel insurance for foreigners in Luxembourg;
Medical insurance all over the world.

We monitor the accuracy and relevance of our information. Therefore, if you see any error or discrepancy, please write to our hotline.

Table of contents

What you need to do to come to the country to work

Process for obtaining a work visa

Important subtleties

Taxes