Sun, 5 February 2012
| Index | Last | Var.(%) |
|---|---|---|
| BEL 20 | 2304.58 | 1.43 |
| DAX | 6766.67 | 1.67 |
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| FTSE 100 | 5901.07 | 1.81 |
| AEX | 326.33 | 1.01 |
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| FTSE MIB | 16439.62 | 1.00 |
| TSX Composite | 12577.28 | 0.19 |
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| Straits Times | 2917.95 | 0.58 |
| ISEQ 20 | 506.95 | 2.24 |
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Based on average income statistics and the income tax rate, the standard of living in Luxembourg is relatively high. The tax rate for individuals is one of the lowest in Europe.For individuals, the basic types of tax and social security costs are income tax (impôt sur le revenu des personnes physiques), social security (sécurité sociale), investment income and capital gains.
Residents in Luxembourg are taxable on their income in 17 brackets up to a maximum rate of 38 percent in excess of EUR 36,570 for a single person and EUR 73,140 for a married couple. There is a new benefit called ‘boni pour enfant’. This ensures that the Caisse Nationale des Prestations Familiales pays an allowance of EUR 922.50 per child. This may also be paid through a tax credit claimed when submitting the tax declaration. Personal allowances can be anywhere between EUR 2,016 for a single person to EUR 8,532 for two married people who both work.
All taxpayers must make an annual tax declaration to the relevant tax office, depending on your area of residence. To check which your area you come under, see the ‘Administration des Contributions’ website and look under Profil de l'Administration/ Adresses et Competences/ Section des Personnes Physiques. They also include a summary of direct taxes in English.
For a single person, EUR 1,500 of investment income is tax free and for a married person, EUR 3,000 is tax free. Half of the dividends from European Companies are exempted. Capital gains are mostly taxable at the marginal rate, with a tax exemption of EUR 50,000 for a single person and EUR 100,000 for a married couple.
For companies, Luxembourg has a tax base of 30.36 percent.
This rate is composed of 22 percent income tax, a five percent unemployment fund added to the income tax rate and a 7.5 percent municipal trade tax for Luxembourg City.
Companies can benefit from several tax exemptions, for example to finance investments.
VAT rates are as follows:
Terms (French - German)
Standard of living: niveau de vie - lebensstandard
Income tax: impôt sur le revenue - einkommenssteuer
Tax declaration: déclaration fiscale - steuererklärung
VAT: TVA (Taxe sur la Valeur Ajoutée) - MwSt. (Mehrwertsteuer)
Expatica
Since 2008, the work permit and the residence permit (for third country national workers) have been merged into a single permit, the Autorisation de séjour. Since 2009, dual or multiple citizenship has been permitted.
Whether you decide to buy or rent in the Grand Duchy, here is our short housing guide, including a look at some of the areas you might want to live in.
Whether it’s finding a doctor or figuring out how to fill your prescription, we give you the basics you need to stay healthy in Luxembourg.
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