Cross-border workers, residents, expatriates: three ways to work in Luxembourg

This article is part of our monthly series: “Working in Luxembourg”.

Each Tuesday, find a different article on our site:

• 5 preconceived ideas about working in Luxembourg... and why they are false (read here)
• Corporate culture in Luxembourg: the codes for integrating well (read here)
• Cross-border workers, residents, expatriates: three ways to work in Luxembourg

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Working in Luxembourg does not mean the same thing depending on whether you live there, whether you come from a neighboring country every day or whether you are a temporary expatriate there.

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Taxation, social security, teleworking or cultural integration: discover the major differences between cross-border workers, residents and expatriates in the Grand Duchy.

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One country, three statuses to work

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Global Overview

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The Grand Duchy attracts very varied profiles: more than 220,000 cross-border workers from France, Belgium or Germany, a large number of residents active there and a community of international expatriates. This combination creates a single employment market in Europe, where three categories of employees with distinct rights and obligations coexist.

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Each status (cross-border, resident, expatriate) involves different rules in terms of contributions, taxes, teleworking or access to the local market. Understanding these distinctions is essential to choose your status, optimize your situation and avoid surprises.

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Distribution and motivations

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Cross-border workers represent a significant part of the Luxembourg workforce. They are mostly attracted by the high salaries and the stability of the market. Residents often choose daily living on site, with access to services, family and integration.

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Expatriates, for their part, join Luxembourg for temporary missions, specialized positions (finance, European institutions, tech) and an international professional environment. The country thus makes it possible to combine a career and an attractive living environment.

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The cross-border worker: between opportunities and constraints

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Major benefits

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For cross-border workers, Luxembourg offers salaries that are often higher than in neighboring countries, a Luxembourg social security system very comprehensive, as well as health and pension coverage through the Joint Social Security Center (CCSS). Any employee active in Luxembourg must be affiliated to this structure, which guarantees protection and social rights.

Luxembourg taxation is also attractive, as Foyer recalls on his blog. It provides for a progressive income tax, with lower tax brackets than in France or Belgium. 

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Constraints and specificities

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But The status of border worker also involves constraints. Teleworking from the country of residence is limited: in France, Belgium or Germany: in France, Belgium or Germany, the general rule is to remain present at the place of employment in Luxembourg for a defined number of days (often 34 days per year) according to the conventions.

On the tax side, you have to deal with bilateral agreements to avoid double taxation : income received in Luxembourg is generally taxed in Luxembourg, but may have to be mentioned in the country of residence.

Travel time, the cost of travel or even access to local services (bank, housing, schooling) can also represent challenges for cross-border workers.

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The resident: stability, protection and integration

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The steps to become a resident

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Becoming a resident in Luxembourg involves registering with the municipality of residence, declaring your activity and joining Luxembourg social security (CCSS) like any person working on site.

For European Union citizens, this process is simplified. ; for non-EU nationals, a residence permit is required. 

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The benefits of living on site

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The resident benefits from comprehensive social benefits: national health coverage, family benefits, continuing education, and easy access to internal promotion and local networks. Living in Luxembourg also makes it possible to better reconcile professional and private life, thanks to an attractive living environment and modern infrastructures.

This stability is reflected in a feeling of anchoring and in more sustainable career opportunities, in particular thanks to an excellent quality of life, an efficient education system and a rewarding multilingual environment.

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Professional implications

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Professionally, living in Luxembourg offers the advantage of being “in the game”: proximity to colleagues, local representations, better availability for meetings early in the morning or late in the evening, and sometimes better visibility in the company. This can facilitate promotions or access to strategic positions.

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The expatriate: international career and cultural adaptation

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Arriving for a mission, settling in for a project

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Expatriates are often recruited for a specific contract: 2, 3 or 5 years in the finance, European institutions or tech sectors. He arrives with an already experienced or highly qualified profile. He will have to obtain a work permit or a residence permit, comply with the procedure for assigning a social security number by the CCSS (in particular for non-EU nationals: new procedure since 2024). 

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The challenges of integration

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The Luxembourg professional environment is multilingual and multicultural. For the expatriate, understanding the codes, the intercultural dimension and getting involved in local life are essential. The Luxembourgish language is not always required but learning some basics is highly appreciated.
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Housing and daily life in the country can be a challenge: the cost of real estate, transport time, and pressure on certain infrastructures are to be anticipated.

The career assessment

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At the end of the contract, the expatriate will have acquired valuable European experience, an international network, and often access to bonuses, advantages or stock options related to his status. For many, it is a rewarding step in their professional career.

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Conclusion

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Whatever your status (cross-border, resident or expatriate), working in Luxembourg remains an exceptional opportunity to develop your career in a safe, dynamic and international environment.

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The choice depends above all on the lifestyle you want, the type of contract and the flexibility you want. But what is common to all: understanding administrative, social and fiscal differences makes it possible to avoid mistakes and to take full advantage of the Luxembourg model.

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FAQ

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Can you be a cross-border worker and work remotely from your country of origin?
Yes, but within the limit set by the conventions (often 34 days a year for cross-border commuters in some countries). Beyond that, the tax or social security system may change. 

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Do expatriates benefit from the same social security as residents?
Yes, as long as they are affiliated to the CCSS. They can have access to the same benefits if they meet the conditions of membership. 

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Is it easy to become a resident in Luxembourg when you are already working there?
For EU citizens, yes: registering with the municipality is sufficient. For non-EU nationals, obtaining a residence permit is necessary.
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Sources:

• Guichet.lu
• Justarrived.lu
• Luxembourg.public.lu

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