Belgian and Luxembourg cross-border workers: up to 34 days of teleworking without tax consequences as from 2022

Since the corona crisis, teleworking home has become more and more part of our working culture. Belgians and Luxembourgers employed across the border will therefore be allowed to work from home for 34 days instead of 24 days as of 2022 without any tax consequences.

Tolerance rule

A Belgian resident who is employed in Luxembourg by a Luxembourg employer is, in principle, taxable in Luxembourg on the remuneration he receives for that employment. If the employee works from home in Belgium, the remuneration received for these days will be taxable in Belgium. The same rule applies to a Luxembourg resident who is employed in Belgium by a Belgian employer.

A certain tolerance applies to this general rule. Belgian or Luxembourg cross-border workers who perform their activity for a maximum of 24 days outside their usual State of employment nevertheless remain taxable in their usual state of employment. In this way, the remuneration of a Belgian resident who habitually works in Luxembourg and who is physically present in Belgium for a maximum of 24 days per year to perform an activity there is still fully taxable Luxembourg.

Increase in the number of days from 2022

Since teleworking is more and more part of our working culture, the tolerance rule of 24 days will be extended to 34 days as from 1 January 2022. This means that as of 2022, a Belgian resident can perform his work for 34 days outside Luxembourg, the state where he usually works, without any tax consequences. The income obtained before these days remains taxable in Luxembourg.

We are glad to help you

If you have any questions about the agreement concluded between Belgium and Luxembourg, please contact our Legal Partners by email on globalmobility@partena.be or by phone on 02/549.30.20.

Source: Appendix of 31 August 2021 to the Agreement between the Kingdom of Belgium and the Grand Duchy of Luxembourg for the avoidance of double taxation and the settlement of certain other matters concerning taxes on income and on capital, and its Final Protocol, signed in Luxembourg on 17 September 1970, as amended by the appendixes of 11 December 2002, 16 July 2009 and 5 December 2017.