Recently, several bilateral accords have been signed between the Luxembourg authorities and those of the bordering countries (France, Belgium and Germany) concerning the teleworking of the Grand Duchy of Luxembourg’s cross-border workers. These accords temporarily allow the teleworking of cross-border workers without impacting the workers’ social security regime.

Below is a brief summary of the situation:

German cross-border workers (last update on 6 September 2021). Source

  • Social Security: extension of the bilateral accord until 31 December 2021
  • Tax: extension of the bilateral accord until 31 December 2021

Belgian cross-border workers (last update on 22 September 2021). Source

  • Social Security: extension of the bilateral accord until 31 December 2021
  • Tax: extension of the bilateral accord until 31 December 2021

French cross-border workers (last update on 1 September 2021). Source

  • Social Security: extension of the bilateral accord until 15 November 2021
  • Tax: bilateral accord bilateral ends on 30 September 2021; whether this accord will also be extended remains to be seen

Thus, the teleworking days related to COVID-19 crisis continue not to be taken into account to determine the social security legislation applicable to the workers concerned.

As a reminder, these are the tolerance thresholds applicable for tax purposes without regard to the COVID-19 crisis:

  • German cross-border workers 19 days;
  • Belgian cross-border workers 34 days (following the Gäichel XI summit of August 2021); and
  • French cross-border workers 29 days.

By Alessandra MEDINA, Avocat à la Cour.