Disclaimer – Use of the term “domiciliation”
Throughout this article, the French term domiciliation is occasionally used because it reflects the wording commonly used by internet users when searching online. Its use is intended solely for educational and search engine optimisation (SEO) purposes.
In Luxembourg, company domiciliation is a regulated activity that may only be carried out by professionals holding the required legal authorisations. The services offered by a business centre such as Colors Business Center consist of providing registered offices and business support services and should therefore not be interpreted as company domiciliation services in the legal sense of the term.
Whenever the term domiciliation is used in this article, it should be understood as referring, depending on the context, to the provision of a professional registered office, office space or workspaces designed to support companies establishing and operating their business in Luxembourg, in compliance with the applicable legal framework.
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Every year, thousands of French residents choose Luxembourg as a place to work or start a business. Whether you’re a cross-border employee, a freelancer or an entrepreneur, understanding Luxembourg’s tax system, remote working rules and business address options can quickly become confusing.
This guide explains the essentials in clear, up-to-date language and shows how a business centre such as Colors Business Center can make your move to Luxembourg much easier.
Good to know: This article provides general information that is accurate at the date of publication. Tax regulations and thresholds change regularly. For advice tailored to your personal situation, consult a tax adviser or an accountant specialising in cross-border taxation.
Where does a French cross-border worker pay income tax?
Under the France-Luxembourg Double Tax Treaty, employment income is generally taxed in the country where the work is physically performed.
If you work in Luxembourg, your salary is therefore taxed in Luxembourg.
However, your Luxembourg income must also be declared in France, where it is taken into account when calculating your household’s overall tax rate. A tax credit mechanism prevents double taxation, meaning you do not pay tax twice on the same income, although your Luxembourg salary may influence the tax rate applied to your other French income.
In short: your salary is taxed in Luxembourg, declared in France, and protected from double taxation through a tax credit.
Remote working: don’t confuse the two different thresholds
This is by far the most common misunderstanding.
There are two completely separate thresholds: one for taxation and one for social security.
The tax threshold: 34 days per year
A French cross-border worker may work remotely from France for up to 34 days per calendar year without changing the taxation of their salary. In that case, the entire salary remains taxable in Luxembourg.
If you exceed the 34-day limit, the salary relating to all days worked remotely from France becomes taxable in France, based on the proportional allocation method provided for under the tax treaty.
This does not result in any penalty, but it makes your tax reporting significantly more complex, requiring declarations in both countries, supporting documents and careful tracking of remote working days.
Depending on your family and financial circumstances, exceeding this threshold may even be financially advantageous, which is why obtaining a personalised tax simulation is often worthwhile.
The social security threshold: approximately 49.9% of working time
For social security purposes, the European Framework Agreement currently allows employees working between France and Luxembourg to work remotely for up to 49.9% of their working time while remaining affiliated with Luxembourg’s social security system (CCSS), provided all applicable conditions are met.
This represents roughly two and a half working days per week.
Beyond this threshold, you will generally become subject to the social security system of your country of residence.
Practical consequence: you may fully comply with the social security rules while simultaneously exceeding the tax threshold of 34 days. These are two separate rules that must each be monitored independently.
Please note: discussions regarding a possible increase in the tax threshold took place in early 2026, but no official agreement has entered into force to date. Always verify the rules applicable at the time you file your tax return.
Setting up your business in Luxembourg: what does “domiciliation” actually mean?
In everyday language, many entrepreneurs use the French word domiciliation to describe having a professional business address in Luxembourg.
Legally, however, company domiciliation refers to a regulated activity. It is therefore important to distinguish the common use of the word from its legal meaning.
Many French entrepreneurs choose to establish their company in Luxembourg because of its business environment, international reputation and market opportunities.
Here are a few important points to understand:
- Having a professional registered office in Luxembourg gives your company a credible local presence and strengthens its corporate image.
- Company domiciliation in the legal sense is a regulated activity that must be carried out by an authorised domiciliation agent, such as a lawyer or chartered accountant. A simple mailbox is not sufficient.
- Luxembourg tax and administrative authorities expect companies to have genuine economic substance, including real business activity, suitable premises and effective management, rather than purely artificial arrangements.
- This is where a business centre becomes particularly valuable. It provides a professional business address, fully equipped offices and meeting rooms, allowing your company to establish a genuine operational presence in Luxembourg without the constraints of a traditional long-term commercial lease.
Why is a business centre the ideal solution for French professionals moving to Luxembourg?
Whether you are a cross-border worker looking for a flexible workspace or an entrepreneur launching a new business, a business centre such as Colors Business Center offers several advantages.
Located in Bertrange, just a few minutes from Luxembourg City, as well as in Bettembourg and Differdange, close to the French border, Colors provides:
- Private offices and coworking spaces when working from home is no longer sufficient or you want to separate your professional and personal life.
- A professional registered office that enhances your company’s credibility.
- Flexible contracts with no long-term commitment, ideal for growing businesses.
- Fully equipped meeting rooms for clients and business partners.
- All-inclusive services including high-speed internet, cleaning and facility management, allowing you to focus entirely on your business.
For French professionals working or setting up a business in Luxembourg, it is one of the simplest ways to establish a credible professional presence while remaining close to the French border.
Frequently Asked Questions
Does a French cross-border worker pay taxes in France or Luxembourg?
Your salary is generally taxed in Luxembourg, where the work is carried out. It must also be declared in France, but a tax credit prevents double taxation.
How many days can I work remotely from France?
You may work remotely from France for up to 34 days per year without affecting your tax situation, and up to approximately 49.9% of your working time while remaining affiliated with Luxembourg social security. These are two completely separate limits.
What happens if I exceed 34 days of remote working?
The salary relating to your remote working days becomes taxable in France according to the France-Luxembourg tax treaty. There is no penalty, but your tax reporting becomes more complex. A personalised tax simulation is recommended.
Can I register my company at a business centre in Luxembourg?
A business centre provides a professional registered office and office facilities. However, company domiciliation in the legal sense is a regulated activity in Luxembourg and may only be carried out by authorised professionals. The appropriate solution depends on your project.
Where is Colors Business Center located?
Colors Business Center operates several locations, including Bertrange (19 Rue de l’Industrie, L-8069 Bertrange), just minutes from Luxembourg City, as well as Bettembourg and Differdange, all easily accessible from the French border.
