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Last active March 14, 2024 16:00
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Luxembourg salary and taxes
Raw
01__luxembourg_open_company.md

Company types

Business Permit

Self-employed

Steps

How to become self-employed in Luxembourg | Luxtoday.lu - Find out how to become self-employed, the requirements and conditions, and the opportunities for self-employment in the Grand Duchy.

There is no separation between self-employment and sole proprietorship in the Grand Duchy, i.e. sole proprietorship = self-employed persons. Private entrepreneur, self-employed person and individual enterprise are the same entities for Luxembourg.

  1. Natural persons who wish to work in self-employed capacity to engage in an activity requiring a business permit must first obtain a business permit.
  1. On receiving their business permit, they must register with the CCSS.

Information and communications technology

Seff-employed informations

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02__luxembourg_skilled_wage_n_taxes.md

Luxembourg wage

info dated back on 2023/09/01

--

Gross Salary: 3.085,11 EUR / month

Health insurance in kind 2,80%: 86,38 EUR
Health cash 0,25%: 7,71 EUR
Pension fund 8,00%: 215,96 EUR 

deductions: 310,05 EUR

Taxable Salary: 2.775,06 EUR

Salary tax (married with children : class 2 = 15%): 416,26 EUR
Care insurance 1,40%: 38,85 EUR

deductions: 455,11 EUR

--

total deductions: 765,16 EUR / month

Gross Salary % taxes: ( total deductions / gross salady ) * 100 = 24,80 %

Net Salary: ( Gross Salary - total deductions ) = 2,319.95 EUR

For whom has children, there's a benefit of monthly allowance per child until 18 years old

The basic monthly amount of the child benefits is currently EUR 299.86. (Amount valid from 01.09.2023 -Index 944,43)

2024/03/07

Frontend developer ~ 67.824,00 EUR / year | 5.652,00 EUR / month

But with the current cost of living in Luxembourg, for a family the minimum salary should be 84.780,00 EUR / year | 7.065,00 EUR / month

The Health system you need to pay then collect the receipt and send to the health agency and get reembursement of ~ 70% for adults and up to 100% for child

The living cost is quite high due to the rent/housing prices https://www.athome.lu/en/rent/apartment/luxembourg

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03__luxembourg_company_operation_costs.md

Topics:

  • accounting costs to operate a company
> 
> business authorization
> VAT number
  > sent invoices
>
  • How do you manage the personal monthly "salary" / dividends to pay the bills?
> the dividends could be done once per year after close the yearly balance
> on top of what left after paying all the taxes + operational costs
>
> > if the company has more than one finance balance/payments of taxes
> > it would be possible to pay the dividents on that point
>
> to have a monthly salary, I would need to have myself register as a company employee
> pay the taxes from the company side and from employee side, I would also pay
> the salary taxes
>
  • is it possible to be self-employed and temporarily use this way to work remotely and pay the taxes? Meanwhile setup, the company
>
> business authorization
> VAT number
  > sent invoices
>
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04__business_bank_account.md

Business bank account

🌎 Revolut

🇪🇺 N26

🇱🇺 Spuerkeess.lu

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