Luxembourg

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Cross-Border Businesses

Luxembourg’s geographical position is ideal and attracts high volumes of cross border businesses.
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Salaries

Salaries in Luxembourg are subject to indexation, which means an individuals’ salary will be adjusted (increased) according to inflation upon the government’s announcement.
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Medical Check

All contractors have to undergo a medical check with the occupational health practitioner immediately after employment in Luxembourg.

Self-employed Solution

Other Deductions 37%
Management Fee 5%
Retained Income 58%

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Where the contractor is a graduate or has a relevant working experience and wishes to work independently, then the self-employed solution is applicable. This solution is for EU nationals or those having the right to work in Luxembourg. Under self-employment, a contractor will be able to enjoy retention of approximately 58%.

Employed Solution

Other Deductions 35%
Management Fee 5%
Retained Income 60%

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Open to all nationals, and there is no requirement to hold a university or college diploma. This solution will appeal to EU nationals and non-EU citizens or British nationals after 01/01/2021, who will need a work permit. As shown in the chart, an employed individual should be able to retain approx. 60% of their emoluments.

Limited Company / PSC Solution

Other Deductions 16%
Fixed Costs 6%
Retained Income 78%

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Where there is a degree of independence between the contractor and the client, then using a limited company is an attractive option for the contractor. This solution is for EU nationals or those having the right to work. An individual working through their own PSC may enjoy retention of approx. 78%.