Clifford Chance

Beneficial tax regime for Highly Qualified Expatriates

5 January 2011

On 31 December 2010, the Luxembourg tax authorities issued a new circular detailing the tax treatment of allowances granted to highly qualified expatriates seconded to Luxembourg or directly recruited from abroad. Offering significant benefits and decreasing the cost of employment, this special tax regime for expatriates is a long waited provision. Together with the existing R&D tax regime this regime will increase the attractiveness of Luxembourg for international groups. The provisions apply to new expatriates coming to Luxembourg as from 1 January 2011.

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