© Bundesministerium der Finanzen/Photothek
Cross-border workers from Germany will now be permitted to work from home 34 days a year, thanks to a new agreement between the two countries.
To date, cross-border workers living in Germany could only work from home for a maximum of 19 days per year before having to contribute to social security and taxes in their home country. Now, the latest amendment to the double taxation agreement (known as DBA) will lead to tax simplifications for these employees.
Luxembourg's finance minister Yuriko Backes said: "We're happy to announce that we have settled on 34 days of home office for cross-border commuters from Germany. This gives both employees and employers planning security. The number of days corresponds to the agreements struck with both Belgium and France, so the same conditions now apply to all cross-border workers. I would like to thank my (German counterpart) colleague Christian Lindner for his support."
Lindner, Germany's Minister of Finance, commented: "Luxembourg is a valued neighbour of Germany. I am therefore pleased to say we are forging even closer ties between our countries. The extension of this rule to 34 days represents significant bureaucratic relief on both sides of the border. This will simplify tax regulations and adapt them to a more flexible way of working, which will be felt directly by cross-border commuters. We are creating modern regulations for European and modern working.
The regulation will only apply from 2024 onwards.
© Bundesministerium der Finanzen/Photothek
