LG 185

Géraldine Hassler
Your salary is built up in "brackets" (layers). On
each "bracket", a certain percentage of taxes
apply, the lowest bracket (minimum wage)
being taxed at nearly 0 percent. Personal taxes
are relatively low in Luxembourg compared
with other countries, e.g. a single person earning
5,000 EUR gross, will pay approximately
22 percent taxes on the monthly salary. It is
important to take this into account when looking
for a job in Luxembourg and to compare
net salaries rather than gross salaries.
Rebecca Lehmann
What about other tax benefits available for
residents in Luxembourg?
RL: Next to state subsidies, a list of expenses are
tax deductible. First on state subsidies; examples
include reduced notary costs when buying your
first residence, child allowances or subsidies on
mortgages for families with children. Taxdeductible
expenses include interests on mortgages,
investments in pension planning, certain
insurance premiums, domestic help, childcare,
or donations up to a certain amount.
Social security system
What are an individual's obligations and
entitlements under Luxembourg's social
welfare system?
VI: The Luxembourg Social Security System is
designed to protect the individual from a series of
risks that would result in a potential dependency
or decrease/loss of remuneration. Its coverage is
rather extensive. The social welfare system in
Luxembourg is compulsory: it does mean that
each worker is then affiliated to the "Centre
Commun de la Sécurité Sociale" (CCSS) upon his
arrival in Luxembourg by the employer.
The employees have to pay contributions for
sickness and maternity insurance, long-term care
insurance and pension insurance (old-age, invalidity
and survivors' insurance). The amount of the
contributions is calculated as a certain percentage
Vinciane Istace
LG - Mars 2016
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