Working in Luxembourg

[PeterC]

I've been offered a twelve month contract in Luxembourg.

I am already registered as a limited company in the UK, so I'm intending on simply invoicing my client as usual.

What are the rules regarding paying taxes?

As this will be my first contract overseas, I'd appreciate any advice about working there.

Cheers
Peat

[tim123]

look to the RHS of you screen

click on the link "overseas guides". This will tell you why using your Ltd is not a good idea

tim

[PeterC]

Thanks tim - that gives me plenty to think about.

[BlasterBates]

You can work for up to six months, but after that you´ll need to go "native", you couldn´t then claim any expenses. If you´re not travelling a lot then best to go through from the outset. If you stay in hotels then yoú won´t register, however, the hotels do send your details to the authorities so they would know you´re in Luxembourg.

[brendan_uk]

If you´re not travelling a lot then best to go through from the outset. If you stay in hotels then yoú won´t register, however, the hotels do send your details to the authorities so they would know you´re in Luxembourg.

Read this a few times and not sue what it means

Thinking of contract in Luxembourg so after 6 months will be liable to local taxes. Seems I have a couple of options.

1. go via umbrella
2. set up local company and get local accountant to make sure i am compliant.
3. Any others?

I have enough trouble getting my head round my uk company and accountant so thinking of going with umbrella for ease of use. don't mind paying correct local tax to be compliant, but obviously want to be as tax efficient as possible,

Anyone with practical experience in Luxembourg?

[BlasterBates]

Probably the best is ITECS or another local Luxembourg company, and be an "employee". That way you've no UK tax to pay even if you're resident in the UK as well. Unfortunately that would mean you can't claim travelling expenses.

[Moscow Mule]

look to the RHS of you screen

click on the link "overseas guides". This will tell you why using your Ltd is not a good idea

tim

If you are intending to commute (staying in a hotel), you will probably get away with using your limited - "flying under the radar" so to speak.

Also, nobody "works" in Luxembourg they just turn up and look & sound officious.

[oracleslave]

you will probably get away with using your limited - "flying under the radar" so to speak.

But would you bet your house on that?

[BlasterBates]

...but if they do catch you you'll have a big bill to pay and the UK tax authorities probably won't refund anything.

[Moscow Mule]

But would you bet your house on that?

Seeing as I don't own one, absolutely.

But it's a valid point - the main reason for not using your limited is that the tax authorities might consider you to be running your company from Lux/Belg etc. (and hence liable for corp. tax).

If you're flying home every weekend, it makes that much less likely.