Luxembourg has made progress on the issue of teleworking by cross-border commuters in recent years. In addition to existing bilateral agreements allowing French and Belgian employees 34 annual days of teleworking and Germans 19 days, the Grand Duchy recently signed an additional agreement that is even more advantageous for cross-border workers.
The new agreement has been signed with Belgium and Germany, but is still pending with France. It will enable border workers to telework for half the year without fear of a change in social security regime. The accord resulted from a collaborative effort between several EU countries and will come into force on 1 July.
However, according to the CNFP, the rules governing teleworking and the agreements signed with neighbouring countries are a source of “uncertainty”.
In fact, the CNFP fears a tax leak: neighbouring countries might “exert pressure for bilateral tax agreements with Luxembourg that are more advantageous for them”. Senator Olivier Jacquin (PS), for example, demands a fiscal compensation from Luxembourg to finance the A31 motorway in France.
Read also: Many Luxembourgish employers in favour of home officeThe CNFP further warns that “the declared preference of workers for teleworking might incentivise cross-border commuters to opt for taxation in their country of residence at the expense of Luxembourg”.
Despite the advantages in terms of mobility and comfort for workers, the agreement might have “a significant impact on public finances”, according to the CNFP.
