Rate
—
Duration
9 years
Prior non-residency
5 years
required before applying
Standard top income tax
42.0%
Luxembourg, without the regime
Overview
- Regime
- Impatriate tax regime
- Country
- Luxembourg
- Type
- Percentage exemption
- Status
- Active
- Effective from
- Jan 1, 2025
- Expires on
- —
Details
- Summary
- 50% exemption on qualifying employment compensation, capped at EUR 400,000 of income (maximum EUR 200,000 exempt per year).
- Eligibility
- Highly qualified hire or secondment becoming Luxembourg tax resident; minimum base salary EUR 75,000; no Luxembourg tax residence and no home within 150 km of the border for five years before starting Luxembourg work.
- Benefits
- 50% of qualifying compensation exempt from PIT for the arrival year and the following eight years.
- Requirements
- Employee and employer conditions under domestic impatriate rules; professional income must meet salary threshold.
- Limitations
- Exemption capped at EUR 400,000 of compensation per year; other income taxed normally.
- Income types covered
- Employment compensation from Luxembourg activities
- Duration details
- 9 years (year of arrival plus eight)
View source PwC Luxembourg 2026