Reply to: Contract in Luxembourg

[m0n1k3r]

In Europe you will find that is pretty much universal.

It isn't. It is up to the local tax authorities to determine, and it much depends on how companies are viewed in the particular country. Not all tend to look through one-man limited companies, but on the other hand may require other registrations and compliance intended for a bit larger companies (since single-director companies are not common elsewhere).

I had to look into this in detail as an accountant some time ago (that's another career I have).

[BlasterBates]

Depends on the country.

In Europe you will find that is pretty much universal. There is a good reason for this rule and that is it would be very simple to avoid tax by simply rotating your workforce from a low tax location.
i.e. Indian companies have to tax themselves in the UK even though they bring in staff on short term visas.

I would say no European country in the EU(EEA) would allow this.

[m0n1k3r]

Whether the contract is taxable or not has nothing to do with whether you stay in a hotel or rent a flat. The point is your office is defacto the client where you're working.

i.e. if you are taxed where you work.

Depends on the country.

[BlasterBates]

Whether the contract is taxable or not has nothing to do with whether you stay in a hotel or rent a flat. The point is your office is defacto the client where you're working.

i.e. if you are taxed where you work.

[m0n1k3r]

Would air bnb be ok or hotel be best? What about the tax implications?

If you rent a flat then that is deemed as "permanent establishment" for both yourself and your company. If you keep to hotels and other short-term accommodation then it's easier to argue that you are a posted worker.

[SueEllen]

Well, there IS such a rule. However it doesn't apply in the context of LTDs. It's for companies sending their employees abroad on short assignments. Anyway, the rule is irrelevant in this case.

Depends on the EU country the contract is in.

Both myself and NLUK have given explanations of it in the many threads involving contracting abroad.

Regardless of the model used if you are a one-man limited company without other UK resident directors you are excluded.

[skysies]

1. You will be tax resident in Luxembourg AND the UK.
2. There is no such thing as the 183 day rule.
3. Use accommodation that you can book week by week.

Well, there IS such a rule. However it doesn't apply in the context of LTDs. It's for companies sending their employees abroad on short assignments. Anyway, the rule is irrelevant in this case.

[SueEllen]

Hi all,

Looking for some advice regarding contracting in Luxembourg - I have already did a search but left feeling more confused due to differing opinions.

My contract will be 6 months only in Luxembourg and I will be travelling back home to London each Friday and returning on the Monday. It's £550 a day and I have a limited company set up in the UK. Will I be tax resident in Luxembourg even though I will return home each Friday? How will I be taxed and could there be complications? Does the 183 day rule apply to contractors? Is it best to stay in air b and b/hotel or a studio flat to be able to claim expenses?

Thanks

1. You will be tax resident in Luxembourg AND the UK.
2. There is no such thing as the 183 day rule.
3. Use accommodation that you can book week by week.

[skysies]

There is no such thing as the 183 day rule and based on above you'll be taxed in LX and U.K., paying the higher of the two subject to DTA.

Exactly. As I found out too, this rule won't apply in most cases, especially if you are working through your LTD.

[stek]

Hi all,

Looking for some advice regarding contracting in Luxembourg - I have already did a search but left feeling more confused due to differing opinions.

My contract will be 6 months only in Luxembourg and I will be travelling back home to London each Friday and returning on the Monday. It's £550 a day and I have a limited company set up in the UK. Will I be tax resident in Luxembourg even though I will return home each Friday? How will I be taxed and could there be complications? Does the 183 day rule apply to contractors? Is it best to stay in air b and b/hotel or a studio flat to be able to claim expenses?

Thanks

There is no such thing as the 183 day rule and based on above you'll be taxed in LX and U.K., paying the higher of the two subject to DTA.

[LondonManc]

Would air bnb be ok or hotel be best? What about the tax implications?

Never been, don't know. I do a lot of work in London and use Trivago as my first port of call for booking accommodation.

[europetractor]

Would air bnb be ok or hotel be best? What about the tax implications?

You will be fine. It is not like swiss where you are put a wireless tracker on your neck as soon as you cross the border.

[northernladuk]

Would air bnb be ok or hotel be best? What about the tax implications?

What???

[Northernercontractor]

Book only a few weeks in advance rather than tying yourself to a six month rent. If the gig turns to poo after a month, you're stuck with a five-month commitment that you may struggle to wriggle out of.

In terms of the rest, linky:
IT Contracting in Luxembourg: Living & Working :: Contractor UK

Would air bnb be ok or hotel be best? What about the tax implications?

[LondonManc]

Book only a few weeks in advance rather than tying yourself to a six month rent. If the gig turns to poo after a month, you're stuck with a five-month commitment that you may struggle to wriggle out of.

In terms of the rest, linky:
IT Contracting in Luxembourg: Living & Working :: Contractor UK