Improved conditions for cross-border workers from France

The number of days that one can work remotely will increase. From January 1, 2023, the French workers are free to work from home for 34 days and still pay taxes in Luxembourg.

Another important reform concerns the very procedure of tax collection. Now a foreign employer won’t have to withhold tax from an employee in favor of France (and according to French standards). From January, the business will only report on the number of days that exceeded the quota. And the work of collecting taxes will be taken over by the interested party.

In addition, some relaxations are planned in the social security regulations. According to the old norm, an employee must spend no more than 25% of his working time at home. Otherwise, he joins the social security system of his country of residence. It doesn’t benefit employees or companies. The new project proposes to expand this quota to 41% or up to 2 days a week.

However, the reform project itself is still under consideration. It will be some time before it’s fully accepted.