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Almost half of Luxembourg's workforce lives across the border. Taxes, health insurance, telework days and unemployment follow special rules for cross-border workers — here is the essential map.
Working in Luxembourg while living in France, Belgium or Germany is extremely common — and well organised. But four areas follow special rules you should master before signing your contract.
Your Luxembourg salary is taxed in Luxembourg at source. Under the tax treaties, you may however work from home in your country of residence only a limited number of days per year before part of your salary becomes taxable there: 34 days per year for France, Belgium and Germany. Beyond the threshold, the days worked at home are taxable in your residence country, and your employer may have obligations there too. Married non-resident workers should also check their withholding class: they are generally treated as class 1 unless they request assimilation to residents (broadly, when around 90 % of household income — 50 % for Belgian residents — is taxable in Luxembourg).
You remain insured with the Luxembourg CCSS/CNS. With form S1, you register with the health fund of your residence country and can see doctors on both sides of the border. Family benefits are coordinated between the two countries. For social security, an EU framework agreement allows substantial telework — up to just under 50 % of working time — while keeping Luxembourg affiliation, provided both countries apply the agreement and the employer requests it; otherwise the standard 25 % rule applies.
| Topic | Rule for cross-border workers |
|---|---|
| Income tax on salary | Luxembourg (withholding), telework limit 34 days/year |
| Health insurance | CNS + S1 registration at home; care possible in both countries |
| Full unemployment | Paid by the country of residence (Luxembourg periods counted) |
| Family benefits | Coordinated; Luxembourg pays as country of work, with differential rules |
| Pension | Each country pays for the years insured there |
