International tax for individuals

An analysis tailored to your international situation

Professional activity, property, investments or a pension abroad may raise tax questions in several countries.

The firm assists individuals, self-employed people and company directors whose personal situation has a tax connection with Luxembourg, notably in Belgium–Luxembourg situations.

The analysis takes into account your residence, your family situation, the nature of your income and the rules applicable in the countries concerned.

Arrival, departure and tax residence

Determining your tax residence

Tax residence cannot be inferred solely from a declared address or registration with a municipality. The accommodation available to you, your personal and economic ties and the circumstances in which you settled must be examined.

Where several countries consider you resident under their legislation, the applicable tax treaty may provide criteria for determining your residence for the purposes of that treaty.

Preparing for a change of country

Settling in a country or leaving one may change your filing obligations and the treatment of your income. The firm reviews the timeline of the move, the income for the year concerned and the ties you retain with the country you are leaving.

Where your plans are still under consideration, a quantified comparison can be prepared within the agreed scope, on the basis of explicit assumptions.

Income from several countries

The firm reviews in particular situations involving:

• salaries relating to work carried out in several countries;
• foreign pensions or retirement benefits;
• rental income and property disposals abroad;
• dividends, interest and capital gains on investments;
• bonuses, indemnities or deferred remuneration paid around a change of residence.

Characterising each item of income

The tax treatment depends on the exact nature of the income, its source and the circumstances in which it is awarded. The country of the bank account into which it is paid is not sufficient to determine how it is taxed.

Reviewing the consequences in Luxembourg

Depending on the applicable rules, foreign income may be taxable in Luxembourg, be exempt or give entitlement to a foreign tax credit.

Exempt income may nevertheless have to be declared and be taken into account in determining the rate applicable to other income.

Tax treaties and double taxation

Tax treaties allocate taxing rights between countries and provide mechanisms designed to eliminate double taxation.

The firm reviews the treaty applicable to your situation, the category of income concerned and the conditions for benefiting from the treatment it provides.

Withholding tax or tax already paid abroad does not necessarily exempt you from filing a tax return in Luxembourg. Steps in the other country may also be needed to obtain relief or a refund.

Support defined according to your needs

The engagement may include:

• a consultation on a specific question;
• an analysis of the tax consequences of arriving or leaving;
• a comparison of scenarios before a decision is taken;
• a review of the treatment of foreign income;
• a written memo setting out the conclusions and points requiring attention;
• preparation of the Luxembourg tax return and the agreed schedules.

The conclusions are based on the facts and documents available. The assumptions used and the points still to be confirmed are set out.

A clear scope across the countries concerned

The scope of the work and the fees are defined before work begins.

Preparing a Luxembourg tax return does not automatically include the tax returns or formalities to be completed in another country. Where additional local expertise is required, this need is identified and how it fits with the engagement is clarified with you.

Present your plans or your question

State the countries concerned, your current situation, the nature of your income and the key dates. For a planned move, please also outline the main features of your plans.

The firm will tell you what information is needed and how it will handle your matter. Your request can be submitted in writing, without a prior appointment.