Contracting in Luxembourg

[jpwizard111]

Hi Everyone,

I’ve my own Ltd. Company and I was recently offered a 3 month rolling contract in Luxembourg. I would be contracted out to a Recruitment firm (and in turn be an employee of my own company). I’m trying to figure out what tax requirements I would have as I’m getting conflicting information from the recruitment company (who say I have none as I’m a “freelancer”) and PEO services (who say I have to attain a Tax ID card, register with the local Commune etc… they’re trying to attain my business).

There’s a bit of information here but it’s about a decade old so really unsure with what to go with…

Any advice would deeply be appreciated.

Thanks!

[PocketCalculator]

Stick with your UK company. I have. They have no idea if you're in the country or not (unless we do something daft like leave the EU...)

[Lance]

What’s a ‘rolling contract’ when it’s at home?
A contract either ends on a date or it doesn’t. If you have a 3 month contract then it’s the former.

[BlasterBates]

You will be liable for tax in Luxembourg.

Taxes for self-employed and freelancers in Luxembourg - Expat Guide to Luxembourg | Expatica

They do crack down on tax evaders from time to time.

I would advise a payroll company. If you're under 6 months it is likely that you'll pay hardly any tax and other contributions anyway. In my first year in Luxembourg I was only there for three months of their tax year.

[BHicks]

Similar situation here.

UK agency offering a 6 month contract with a client based in Luxembourg paying in Euros.

To be honest, my first thought when I heard the description was why the hell aren't the agency shouldering the FX aspect seeing as they're getting a healthy slice on top?

You can bet they have their payments with the client suitably sorted in that aspect.

Anyway, the other question then becomes if my Ltd company is being paid by a UK agency (who in turn are contracted to a Lux client), why would I have any personal liabilities in LU?

[BlasterBates]

Similar situation here.

UK agency offering a 6 month contract with a client based in Luxembourg paying in Euros.

To be honest, my first thought when I heard the description was why the hell aren't the agency shouldering the FX aspect seeing as they're getting a healthy slice on top?

You can bet they have their payments with the client suitably sorted in that aspect.

Anyway, the other question then becomes if my Ltd company is being paid by a UK agency (who in turn are contracted to a Lux client), why would I have any personal liabilities in LU?

If you are working in Luxembourg you are liable for tax regardless of whether the agency is located in the UK.

If you don't tax yourself in Luxembourg you may get caught when the Lux tax authorities carry out an audit on the client.