Reply to: Working in Luxembourg

[brendan_uk]

Ok umbrella tells me I can get maybe 80% of gross in my company splitting it so part is paid and taxed via luxembourg, no expenses.

Obvious risks of not declaring full income, but is this a worry about nothing in practice?

[Moscow Mule]

http://www.pwc.com/lu/eng/ins-sol/pu...ncometaxes.pdf

I haven't read this as it doesn't affect me anymore - but it may be of some help.

[BlasterBates]

Just bear in mind when you're working in a country you are tax resident after 6 months regardless of where you spend the night. In Luxembourg many cross the border work during the day cna go back to Germany or France for the evning. These cross borders are tax resident in both Luxembourg and their home country. However their salaries are not taxed in their home country due the double tax treaty.

[Moscow Mule]

Don't forget, with Luxembourg, you can easily drive from another country each day.

You could even change your country of residence every 6 months if you *really* wanted to become a fiscal nomad.

[brendan_uk]

Unfortunately that would mean you can't claim travelling expenses.

Could I claim accommodation costs via umbrella, that would be my biggest outgoing.

[brendan_uk]

Many thanks folks,

What sort of % take would I end up in my pocket using an umbrella and signing up as employee?

Might be 3 years, do you think I could fly under radar that long? would be staying in serviced apartment (hopefully) and could arrange that I fly back fridays and in again Monday if I need to be over the 183 day to be liable to uk tax. Although wouldnt like too

[Moscow Mule]

But would you bet your house on that?

Seeing as I don't own one, absolutely.

But it's a valid point - the main reason for not using your limited is that the tax authorities might consider you to be running your company from Lux/Belg etc. (and hence liable for corp. tax).

If you're flying home every weekend, it makes that much less likely.

[BlasterBates]

...but if they do catch you you'll have a big bill to pay and the UK tax authorities probably won't refund anything.

[oracleslave]

you will probably get away with using your limited - "flying under the radar" so to speak.

But would you bet your house on that?

[Moscow Mule]

look to the RHS of you screen

click on the link "overseas guides". This will tell you why using your Ltd is not a good idea

tim

If you are intending to commute (staying in a hotel), you will probably get away with using your limited - "flying under the radar" so to speak.

Also, nobody "works" in Luxembourg they just turn up and look & sound officious.

[BlasterBates]

Probably the best is ITECS or another local Luxembourg company, and be an "employee". That way you've no UK tax to pay even if you're resident in the UK as well. Unfortunately that would mean you can't claim travelling expenses.

[brendan_uk]

If you´re not travelling a lot then best to go through from the outset. If you stay in hotels then yoú won´t register, however, the hotels do send your details to the authorities so they would know you´re in Luxembourg.

Read this a few times and not sue what it means

Thinking of contract in Luxembourg so after 6 months will be liable to local taxes. Seems I have a couple of options.

1. go via umbrella
2. set up local company and get local accountant to make sure i am compliant.
3. Any others?

I have enough trouble getting my head round my uk company and accountant so thinking of going with umbrella for ease of use. don't mind paying correct local tax to be compliant, but obviously want to be as tax efficient as possible,

Anyone with practical experience in Luxembourg?

[BlasterBates]

You can work for up to six months, but after that you´ll need to go "native", you couldn´t then claim any expenses. If you´re not travelling a lot then best to go through from the outset. If you stay in hotels then yoú won´t register, however, the hotels do send your details to the authorities so they would know you´re in Luxembourg.

[PeterC]

Thanks tim - that gives me plenty to think about.

[tim123]

look to the RHS of you screen

click on the link "overseas guides". This will tell you why using your Ltd is not a good idea

tim