# Individual tax residence and foreign income Luxembourg distinguishes domestic tax residence from residence permits. Residents have worldwide-income exposure, while non-residents are taxed on Luxembourg-source income subject to treaty rules. Scope: General individual income-tax residence, source scope and foreign-income relief; no personalised treaty outcome, rate calculation or non-resident assimilation election. Jurisdiction: Luxembourg — individual income tax and applicable double-tax treaties. Sources reviewed 2026-09-17; review due 2026-12-16. General information, not personal tax advice. Nationality, tax residence and source of income are different questions. Consult the tax authority or a qualified adviser for your circumstances. ## Tax domicile or habitual abode Domestic individual residence arises from a tax domicile or habitual abode in Luxembourg. A tax domicile involves a dwelling held in circumstances indicating it will be retained and used. Habitual abode means staying in circumstances showing the stay is more than temporary. Evidence: conditional. [Luxembourg Administration des contributions directes: Résident / non-résident](https://impotsdirects.public.lu/fr/az/r/resid_nonresid.html); [Luxembourg Administration des contributions directes: Domicile fiscal](https://impotsdirects.public.lu/fr/az/d/domi_fisc.html); [Luxembourg Administration des contributions directes: Séjour habituel](https://impotsdirects.public.lu/fr/az/s/sejour.html). Source location: Résident / non-résident, Personne physique; Domicile fiscal and Séjour habituel definitions. ## A permit or address is not conclusive A Luxembourg residence permit does not automatically establish tax residence. The tax authority also states that a person whose centre of vital interests is abroad is generally non-resident regardless of address; cross-border facts and the applicable treaty therefore need examination. Evidence: conditional. [Luxembourg Administration des contributions directes: Résident / non-résident](https://impotsdirects.public.lu/fr/az/r/resid_nonresid.html). Source location: Personne physique, centre des intérêts vitaux and titre de séjour paragraphs; treaty-residence paragraph. ## Residents' worldwide-income scope Resident individuals are subject to income tax on Luxembourg and foreign income. This worldwide scope is a starting point, with applicable double-tax relief considered separately. Evidence: conditional. [Luxembourg Administration des contributions directes: Résident / non-résident](https://impotsdirects.public.lu/fr/az/r/resid_nonresid.html). Source location: Opening resident-income paragraph and bilateral-tax-treaty paragraph. ## Non-residents' Luxembourg-source income An individual with neither Luxembourg tax domicile nor habitual abode can still be a non-resident taxpayer when receiving taxable Luxembourg-source income. Non-resident income-tax scope is domestic-source income, subject to applicable treaty limitations. Evidence: conditional. [Luxembourg Administration des contributions directes: Résident / non-résident](https://impotsdirects.public.lu/fr/az/r/resid_nonresid.html). Source location: Opening non-resident-income paragraph; Personne physique, non-resident definition; bilateral-tax-treaty paragraph. ## Treaty relief and progression Treaties address double taxation through exemption or credit. For a resident, treaty-exempt foreign income generally enters the notional base used to determine the rate on remaining taxable income; the authority specifies an exception for exempt extraordinary income in that rate calculation. Evidence: conditional. [Luxembourg Administration des contributions directes: Résident / non-résident](https://impotsdirects.public.lu/fr/az/r/resid_nonresid.html); [Luxembourg Administration des contributions directes: Revenu de source étrangère et impôts étrangers y relatifs](https://impotsdirects.public.lu/fr/az/r/reven_sourc_etrang.html). Source location: Résident / non-résident, treaty paragraph; Revenu de source étrangère, Présence d'une convention internationale. ## Foreign tax where no treaty applies For resident income from a non-treaty country that bears a tax corresponding to Luxembourg income tax, the Luxembourg tax attributable to that income is reduced for foreign tax assessed and paid. Relief is normally calculated separately by source country, with special conditions for foreign investment income; it is not a blanket foreign-income exemption. Evidence: conditional. [Luxembourg Administration des contributions directes: Revenu de source étrangère et impôts étrangers y relatifs](https://impotsdirects.public.lu/fr/az/r/reven_sourc_etrang.html). Source location: Revenu de source étrangère, Absence d'une convention internationale, first two bullets. ## Scope and limitations - Tax residence, treaty residence and immigration residence are separate questions. No universal numerical day-count shortcut or passport-based tax result is asserted. - Income classification, treaty articles, exemptions, credit limits, non-resident assimilation and filing obligations need a case-specific review. No effective tax rate or personal liability is calculated. ## Explore this passport - [Passport rank and travel access](https://multipassrank.com/passport/luxembourg) - [Citizenship requirements](https://multipassrank.com/passport/luxembourg/citizenship) - [Country-profile JSON, including sources and scoped requirements](https://multipassrank.com/api/v1/country-profiles/LU) - [Multiple-citizenship policy guide](https://multipassrank.com/dual-citizenship-countries) [Canonical page](https://multipassrank.com/passport/luxembourg/taxes)