Non-residents of Luxembourg are taxed on Luxembourg-sourced income, while income tax on worldwide income is levied on persons resident to Luxembourg.

Luxembourg Income Tax Rates 2015: Personal Income Tax Rates

Income tax in Luxembourg is based upon the individual and their personal situation, such as family status. For this reason, Individuals are given a tax class. The defined tax classes are:

• For Single Persons: Class 1
• For Married Persons: Class 2 (also covering civil partners under certain conditions)
• For Single Persons with children (alongside single taxpayers aged 65 or over on the 1^st of January of the tax year): Class 1a

Non-resident taxpayers who are married are given a separate tax class (known as tax class 2 – generally seen as the tax class for resident spouses) if they should be taxable in Luxembourg, the application of tax class 2 results in a combined assessment. Married non-residents who pay tax but do not comply with the 50% condition are given tax class 1 or 1a.

Civil partners who are non-residents can also benefit from tax class 2, under certain conditions.

The tax amount is calculated in line with a progression table, fluctuating between 8% and 40%. A solidarity tax amounting to 7% (or 9% for those earning more than €150,000 in class 1 and 1a or above €300,000 in class 2) will also need to be paid.

Luxembourg Income Tax

Single taxpayer (Class 1/Class 1a)

Married taxpayer (Class 2)

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