Are tax breaks for foreign workers ineffective?

The tax breaks for highly paid employees were extended at the beginning of 2023. Third-country workers who earn 75,000 euros or more per year can now also take advantage of the privilege.

This tax regime helps expats get relief from taxes and relocation costs. This includes moving and travel costs, as well as accommodation and school fees for children. These costs can be covered by the company, declaring them as operational costs.

However, according to experts, this measure is not sufficient anyway. Even lowering the threshold for receiving privileges does not eliminate the main problem of Luxembourg - the cost of housing.

Obviously, the attractiveness of the country for foreigners is not only formed by the level of income, but also by many other factors affecting convenience. Few companies can offer this package of conditions.