Emigrating from Germany to Luxembourg: tax and cost of living

Compared by dimension

On an average Germany income of €50,400 gross per year, you keep €38,555 net in Luxembourg: a difference of €6,310 per year compared with Germany.

• Tax: on this income Luxembourg lands at an effective rate of about 24%, against 36% in Germany.
• Passport and mobility: from Luxembourg you travel visa-free to 186 countries.
• Residency: on our accessibility scale Luxembourg scores 100 out of 100 for obtaining residency.
• Living environment: banking, internet, safety and healthcare together give Luxembourg a living-environment score of 83 out of 100.

The tax regime in Luxembourg

Tax class 1 (single) is progressive from 0% (up to EUR 13,230) to 42% (above EUR 234,870), plus a solidarity surcharge of 7% on the tax, rising to 9% above EUR 150,000 of taxable income, giving an effective top rate of 45.78%. Employee social contributions: pension 8.5%, sickness 3.05% (both capped at EUR 162,224/year and deductible) and dependency contribution 1.4% (uncapped, non-deductible, after a 25%-of-minimum-wage allowance).

Residency and visas in Luxembourg

EU/EEA citizens can settle and register freely; third-country nationals apply for a residence permit (usually within a few months). Naturalisation is possible after five years of residence. No golden visa or citizenship-by-investment.

Frequently asked questions

What is the financial difference between Germany and Luxembourg?

On an average Germany income it differs by roughly €6,310 net per year. Your own figure depends on your income and situation; calculate it with the free freedom check.

Is this tax advice?

No. Libaros compares on the basis of primary government sources and provides information. For personal decisions, consult a qualified adviser.

What sources is this based on?

The Freedom Score uses the OECD Tax Database, IATA Timatic, the Henley Visa Index and Eurostat, with direct links to primary government sources.