Ceasing your tax residency in Luxembourg involves several important steps that you need to follow carefully. This guide provides you with a detailed walkthrough of each step to ensure a smooth transition.
Step 1: Notify the Local Commune
The first step is to inform the local commune (municipality) of your departure. This notification should be done in person or via a written letter. Make sure to provide all required details, including your current address in Luxembourg, your new address abroad, and the date of your departure. The commune will update their records and may provide you with a confirmation of deregistration.
Step 2: File a Departure Declaration with the Tax Authorities
You are required to file a departure declaration ("déclaration de départ") with the Luxembourg tax authorities. This form must be submitted before or shortly after your departure. It includes information such as your personal details, your new address, and the date you plan to leave Luxembourg. This declaration helps the tax authorities determine your tax liability for the year of departure.
Step 3: Settle Outstanding Tax Liabilities
Before leaving Luxembourg, ensure that all your outstanding tax liabilities are settled. This includes paying any due taxes, filing any pending tax returns, and resolving any tax disputes. Contact the Luxembourg tax office to obtain a final tax assessment and settle any remaining amounts owed.
Step 4: Cancel Social Security and Health Insurance
If you are affiliated with the Luxembourg social security system, you need to notify them of your departure. This includes canceling your health insurance and any other social security contributions. Contact the Centre Commun de la Sécurité Sociale (CCSS) to inform them of your departure and follow their procedures for cancellation.
Step 5: Close Bank Accounts and Financial Matters
Close all your Luxembourg-based bank accounts and take care of any other financial matters. Notify your bank of your departure and follow their procedures for closing accounts. Make sure to transfer any remaining funds to your new bank account abroad. Also, address any other financial obligations you may have in Luxembourg.
Step 6: Inform Other Relevant Parties
Notify other relevant parties of your departure, such as utility companies, landlords, schools, and any subscriptions or memberships you may have. Ensure that all contracts are terminated or transferred as needed. This will help you avoid any future liabilities or obligations in Luxembourg.
Legal References
- Article 3 of the Luxembourg Income Tax Law (LITL)
- Articles 13 and 14 of the General Tax Law (Abgabenordnung)
- Social Security Code (Code de la sécurité sociale)
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