Leaving Luxembourg: how to end your tax residency cleanly in 2026

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You have built a life in Luxembourg and you are moving on, to another EU country, a lower-tax base or a nomadic setup. After this guide, you will know when residence ends and how the departure year is taxed. You will also know what stays taxable and how to close the file.

Luxembourg tax residency exit in 2026: the key figures

What changed for 2026

The exit rules are unchanged from 2025. Article 2 LIR and the split-year rule in article 6 read the same in the ACD's consolidated LIR text at 1 January 2026. The income tax scale also stays at its 2025 level, per the ACD scales page.

Is this guide for you?

Read on if you…

• live in Luxembourg and plan to move abroad in 2026 or 2027;
• own shares in a Luxembourg company or property there;
• want to keep a Luxembourg employer or clients once you live abroad.

Probably not your case if you…

• are moving to Luxembourg (read how to obtain tax residency in Luxembourg);
• never had a home in Luxembourg and only spent short periods there.

When do you stop being a Luxembourg tax resident?

Article 2 LIR (loi concernant l'impôt sur le revenu, the income tax law) has two tests: fiscal domicile and habitual abode. Residence ends only when both are gone.

The ACD's definition of domicile turns on whether you will keep and use the home. Here's the catch: an empty flat you keep for visits can still count.

Good news: the ACD also states that a person whose centre of vital interests is abroad is, in principle, treated as non-resident. Build that centre clearly in your new country. The detail is in our guide to Luxembourg tax residency rules.

Your exit timeline: before, during and after the move

Before you leave

1. List your shareholdings. Holdings above 10% in Luxembourg companies need a plan, because domestic law can keep taxing some gains after you leave.
2. Decide on your home. Sell it, end the lease or let it to a third party.
3. Talk to your employer about remote work from abroad, payroll and withholding.

When you leave

1. Declare your departure at the commune no later than the day before you leave. You can file it on MyGuichet.lu.
2. Third-country nationals: for a departure of more than six months, return your residence permit to the immigration directorate.
3. Register in your new country and get a local tax number.
4. Update your bank and broker with your new tax residence.

After the move

1. File the departure-year return. Form 100 is due by 31 December of the following year, so 31 December 2027 for a 2026 exit.
2. Keep declaring Luxembourg income as a non-resident, for example rent from a flat you kept.
3. Claim treaty relief on dividends. Use form 901bis for refunds of Luxembourg withholding.

What stays taxable in Luxembourg after you leave?

As a non-resident, you pay Luxembourg tax only on the income listed in article 156 LIR. The main items:

• Salary for work done in Luxembourg, including days you come back for meetings.
• Rent from Luxembourg property and gains when you sell Luxembourg real estate.
• Dividends from Luxembourg companies, with 15% withholding tax. Treaty refunds must be requested by 31 December of the year after the withholding, unless the treaty allows longer.
• Gains on substantial shareholdings (over 10%) in Luxembourg companies, in the cases listed in art. 156 LIR, for example for long-standing former residents. Read the article with your adviser before you sell.

Is there an exit tax?

There is no general exit tax on private assets when you leave: Luxembourg taxes a private gain only when you sell. The non-resident rule for shareholdings above 10% is the closest thing. Treaties often give share gains to your new country, so check the capital gains article of yours.

For residents, private share gains after six months are tax-free unless the holding is substantial, meaning over 10% at any time in the previous five years. Substantial holdings are taxed at half the global rate, capped at 22.89% (PwC, secondary). See capital gains tax in Luxembourg.

How is the departure year taxed?

Article 6(3) LIR taxes the resident and non-resident periods distinctly. The resident part uses the normal scale. In class 1, income above EUR 13,230 is taxed at rising rates up to 42%, and the 7% employment fund surcharge applies on top (9% above EUR 150,000).

What about cross-border workers and founders?

Many people "leave" by moving to France, Belgium or Germany and keeping their Luxembourg job. They become non-resident on that salary. The ACD FAQ allows 34 days a year of work outside Luxembourg. Above that, Luxembourg loses the right to tax every day worked outside.

Founders should check where their company is now managed. If you run it from your new country, it may become resident there or create a permanent establishment. See legal forms of business in Luxembourg.

Comparing destinations? Read ceasing tax residency in Malta or in Austria.

Common mistakes (and what they cost)

• Keeping your Luxembourg flat furnished and available → you can stay resident on worldwide income while living abroad.
• Selling a large shareholding without checking art. 156 LIR → Luxembourg can still tax some gains of former residents under domestic law, and only the treaty can shift them.
• Forgetting workdays spent in Luxembourg → that share of salary stays taxable there, with back tax if it was not declared.
• No departure declaration at the commune → you lack the official record of your move, and the end date of residence becomes a dispute.
• Missing the dividend refund deadline → treaty relief on 15% Luxembourg withholding is lost after 31 December of the following year.

Frequently asked questions

How do I stop being a tax resident in Luxembourg?

Give up any home you keep and use there, by ending the lease, selling or letting it to a third party. Do not stay more than six consecutive months. Declare your departure at your commune no later than the day before you leave. Then register in your new country and collect proof: lease, registration and local tax number.

Does Luxembourg have an exit tax for individuals?

There is no general exit tax on private assets: leaving is not a taxable sale. One rule comes close. If you hold more than 10% of a Luxembourg company, art. 156 LIR can keep some later gains taxable in Luxembourg as non-resident income. Many treaties give that right to your new country, so check yours before selling.

Do I still pay Luxembourg tax after moving abroad?

Only on Luxembourg-source income. That covers salary for work done in Luxembourg, Luxembourg rent and gains on Luxembourg real estate. It also covers Luxembourg dividends, which bear 15% withholding. Your foreign salary and most foreign investments are no longer Luxembourg's business once you are non-resident.

Can I keep my Luxembourg flat after leaving?

Yes, but do not keep it available for yourself. A home you keep and use can maintain your fiscal domicile, even with few nights there. Letting it to a third party under a real lease is safer. The rent then stays taxable in Luxembourg as non-resident income, which you declare on form 100.

Do I have to file a Luxembourg tax return in my departure year?

If you are taxed by assessment, yes. Article 6(3) LIR taxes the resident and non-resident parts of the year separately. The return is due on form 100 by 31 December of the following year, so by 31 December 2027 for a 2026 departure. Keep your departure records to fix the end date.

Can I still work for my Luxembourg employer after moving abroad?

Yes, but the tax follows where you work. Living in France, Belgium or Germany? Luxembourg keeps your whole salary if you work no more than 34 days a year outside it. Beyond that, the days worked abroad are generally taxed where you live. Elsewhere, the treaty's employment article decides.

Related guides

• Luxembourg tax residency rules explained
• Capital gains tax in Luxembourg
• Luxembourg's international tax treaties
• Legal forms of business in Luxembourg
• Luxembourg tax landscape overview
• How to cease tax residency in Austria
• All country tax guides

Sources

• LIR, consolidated text at 1 January 2026 – Administration des contributions directes
• Loi concernant l'impôt sur le revenu, art. 156 – Legilux
• Résident / non résident – Administration des contributions directes
• Dividend withholding reduction or refund – Administration des contributions directes
• Declaration of arrival or departure – Guichet.lu
• FAQ non-residents – Administration des contributions directes
• Buying and selling shares – Guichet.lu
• Luxembourg – Income determination – PwC Worldwide Tax Summaries (secondary)

This guide is general information, not personalised tax advice. See how we research and review.