A lot of changes regarding remote work are coming into effect in 2023. While those living in Luxembourg are better off, there are varying rules for neighbouring countries.

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As of 1 January, the social security threshold - which limits teleworking to 25% of annual working time - is frozen until 30 June 2023. This means that a cross-border worker can work from another country without jeopardising their affiliation to Luxembourg's social security system.

This does not apply to tax, however.

In Belgium, the tax threshold is set at 34 days per year. In other words, if you work from home more than 34 days in 2023, your Luxembourgish income will be taxable in Belgium. This was applied retroactively for 2022.

The same applies to France. As of 1 January 2023, cross-border workers can telework for 34 days while continuing to be taxed in Luxembourg.

This means employees can work from home one day per week. Thanks to a new French law, Luxembourg employers will have to declare the number of days of telework carried out by their employees living in France. The latter will then be responsible for making their tax declaration and paying their dues in France. In Germany, the threshold is still set at 19 days per year.

Remote work however is not a right, meaning that an agreement must be reached between employers and employees. An employer can refuse telework allowance.

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