France plans to introduce double taxation with Luxembourg
Chris Karidis, Unsplash
France plans to apply for the first time in 2018 the tax treaty with Luxembourg signed by ministers Pierre Gramegna and Bruno Le Maire. The new calculation system, known as "double taxation", will enter into force in 2025 and will affect income in 2024. It is expected to lead to significant tax increases for certain categories of taxpayers, particularly families with different income levels where the gap between French and Luxembourg income is large.
The French government had previously promised that the impact of the treaty would be "neutral", but tax increases of up to 3,000 euros have already been recorded, especially for those whose income in Luxembourg is much higher than their French counterparts. Thionville deputy Isabelle Roche, who has been working on the issue, is waiting for a response from Michel Barnier's new government.
It was known that the French Finance Ministry had commissioned a study to assess the impact of the agreement on frontier workers, but the results have not yet been published.
