Reminder of reporting obligations concerning the impatriate regime in Luxembourg

Since 1 January 2025, the impatriate regime has been simplified and now allows for a tax exemption of up to 50% of gross annual remuneration, subject to a ceiling of EUR 400,000 per year. This means that the impatriate bonus and the costs generated by the impatriate’s relocation are no longer applicable. The basic conditions for benefiting from the impatriate regime remain largely similar (minimum remuneration, majority of working time in Luxembourg, etc.), but a preliminary analysis is still necessary.

Employees who benefited from the old scheme before 2025 could choose to continue with the old scheme or opt for the new one, but it should be noted that this choice is irrevocable.

It should therefore be noted that two reporting obligations must be fulfilled by 31 January 2026:

• As every year, by 31 January at the latest, the employer must provide the Direct Taxation Authority (ACD) with a list of the names of employees who benefited from the impatriate scheme during the previous year.
• In a special case for this year, the ACD must also be informed of any employees’ decision to switch from the old scheme to the new scheme before 31 January 2026.

Please do not hesitate to contact us for any questions or need for clarification!