Resident in France, employer in Luxembourg

1The legal basis

The rule is set out in the France–Luxembourg double tax treaty of 20 March 2018 (article 14 on salaries, point 3 of the protocol). It has applied to income since 2020.

On the French side, the amending protocol was approved by law no. 2025-139 of 17 February 2025 and published by decree no. 2025-382 of 28 April 2025. It applies retroactively from 2023 income.

On 24 June 2026, the Luxembourg tax authority (ACD) published a new circular, L.G. – Conv. D.I. no. 61, which clarifies how the 34 days are applied. It replaces the circular of 21 October 2020.

2What counts as a day outside Luxembourg

Any day on which you are physically in France or a third country for your work counts. It is not limited to telework.

• telework at home or elsewhere in France;
• business trips in France or a third country (Belgium, Germany, Spain…);
• training courses attended outside Luxembourg;
• part of a day counts as a full day: two hours of telework in the morning and then the office in Luxembourg in the afternoon is one day.

The following do not count:

• holidays;
• sick leave;
• rest days and public holidays on which you are not required to work;
• cases of force majeure that depend neither on you nor on your employer.

The threshold applies per calendar year and per person: if you have several contracts in the year, the days are added together.

3Part-time work and incomplete years

The threshold is reduced pro rata to your working time and to the length of the contract in the year, then rounded down to the nearest whole number.

4If you exceed the threshold

The salary is then split: the share that corresponds to days worked in France or a third country is taxed in France, the rest in Luxembourg. France avoids double taxation through a tax credit equal to the French tax on the Luxembourg share.

Sickness and maternity benefits remain taxable in the State that pays them. Overtime follows the State where it was worked.

According to Frontaliers Grand Est, the Luxembourg employer must then register for the PASRAU scheme (the French withholding system for non-French payers) and report the French share every month; it does not withhold French tax, and the employee pays instalments.

5Your tax return in France

• Return 2042 and annex 2047 (foreign-source income).
• In the 2047: gross salary minus social security contributions, without deducting Luxembourg tax.
• Carry it over to the 2042, boxes 1AF to 1DF, and box 8TK for the tax credit.
• If you exceed the threshold, the share taxable in France goes in boxes 1AG / 1BG.

There is no official template for the employer’s certificate; it is recommended as proof.

6Ongoing negotiations

The 2022 amending protocol provides for the two countries to renegotiate the rules. France is asking for 40 % of working time; Luxembourg is offering 25 % at most (about 1.25 days a week), with no automatic tax compensation. The intergovernmental commission of 11 December 2025 ended without agreement; the next one is expected in the second half of 2026.

For now, the threshold remains 34 days. homeoffice.lu alert subscribers will be notified if this changes.