Key takeaways
- You are a Luxembourg tax resident if you have an effectively used abode in Luxembourg or stay there for more than six consecutive months (even across two tax years or with short absences). Leaving means giving up the home and the presence.
- Luxembourg has no general exit tax for individuals' private assets, but non-residents can still be taxed on gains from a substantial shareholding (> 10%) in a Luxembourg company if they were resident for more than 15 years and sell within 5 years of leaving, subject to treaties.
- After departure, Luxembourg-source income stays taxable: salary for work performed in Luxembourg, Luxembourg rental income and gains on Luxembourg real estate.
Last reviewed: October 2026
Luxembourg is home to many internationally mobile professionals – fund managers, bankers, EU staff and tech workers – and many of them eventually move on. Leaving is usually straightforward, but the year of departure, cross-border work patterns and the substantial-shareholding rule need attention. This guide covers the essentials for 2026.
Leaving Luxembourg – key figures (2026)
| Item | Rule |
|---|---|
| Residence test 1 | An effectively used abode in Luxembourg |
| Residence test 2 | Stay of more than six consecutive months |
| Top income tax rate | 45.78% (including solidarity tax) |
| Private gains on shares held > 6 months | Not taxed, unless a material interest (> 10%) |
| Material interest gains (residents) | Half the average combined rate, max 22.89% |
| Non-residents: material interest | Taxable if resident > 15 years and sale within 5 years of departure |
| Main residence gain | Exempt |
| General exit tax on private assets | None |
When do you stop being a Luxembourg resident?
Residence ends when you no longer have an effectively used abode in Luxembourg and no longer stay there for more than six consecutive months. In practice:
- give up or let your Luxembourg home to third parties;
- deregister at your commune (déclaration de départ) and keep the certificate;
- become resident in your new country and keep proof of it.
In the year of departure, you are taxed as a resident for the period of residence and as a non-resident afterwards on Luxembourg-source income.
What stays taxable after you leave?
- Employment income for work physically performed in Luxembourg (including partial workdays if you commute in from abroad);
- rental income and gains on Luxembourg real estate;
- directors' fees from Luxembourg companies;
- dividends from Luxembourg companies (15% withholding tax, reduced under treaties or EU rules);
- gains on a material interest in a Luxembourg company under the 15-year/5-year rule, unless a treaty gives the right to tax to your new country.
Example: A French national who lived in Luxembourg for 18 years and owns 30% of a Luxembourg SARL moves to Portugal in 2026 and sells the shares in 2028. Luxembourg domestic law could tax the gain as a non-resident's substantial participation; whether it actually can depends on the Luxembourg–Portugal treaty, which generally allocates share gains to the seller's state of residence.
Cross-border workers: a special case
Many people "leave" Luxembourg by moving to France, Belgium or Germany while keeping their Luxembourg job. They become non-resident taxpayers in Luxembourg on their salary, with treaty tolerances for days worked outside Luxembourg (e.g. 34 days for France and Belgium, 34 for Germany since 2023). Exceeding the tolerance makes part of the salary taxable in the residence country.
Points for location-independent professionals
- Employees going fully remote abroad: once you live and work elsewhere, Luxembourg normally loses the right to tax the salary, but your employer must adjust payroll and social security (A1 certificates within the EU).
- Founders of Luxembourg companies: check where the company is effectively managed after you leave.
- Fund carried interest and stock options: special Luxembourg regimes may follow you; review before departure.
Frequently asked questions
How do I stop being a tax resident in Luxembourg?
Give up your effectively used abode, avoid staying more than six consecutive months, deregister at your commune and establish residence abroad. Keep proof of your new residence.
Does Luxembourg have an exit tax?
There is no general exit tax on individuals' private assets. However, non-residents who lived in Luxembourg for more than 15 years can be taxed on gains from a substantial shareholding if they sell within five years of leaving, subject to tax treaties.
Do I pay Luxembourg tax after moving abroad?
Only on Luxembourg-source income: salary for work done in Luxembourg, Luxembourg rental income and property gains, directors' fees and dividends from Luxembourg companies.
How are capital gains taxed in Luxembourg?
Private gains on shares held more than six months are not taxed unless you hold more than 10%; those material-interest gains are taxed at half the average rate (max 22.89%). Gains within six months are taxed at progressive rates above EUR 500.
Related guides
- How to obtain tax residency in Luxembourg
- Legal forms of business in Luxembourg
- How to end your tax residency in France
- How to end your tax residency in Germany
Sources
- PwC Worldwide Tax Summaries – Luxembourg: Residence
- PwC Worldwide Tax Summaries – Luxembourg: Income determination
- Luxembourg Income Tax Law (LIR), articles 2, 100, 156
- Administration des contributions directes (impotsdirects.public.lu)
This guide is general information, not personalised tax advice.
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