21. Special cases
European Union Officials
Taxation of EU officials in Luxembourg
The salary paid by the European Union or any other European institution is exempt from tax in Luxembourg. Therefore, you do not need to declare this income in your Luxembourg tax return.
The case of “mixed” couples: EU official and Luxembourg employee
Married couples
- By default, married couples may file a joint tax return in Luxembourg.
- The income of the EU institution employee is tax-exempt and does not need to be declared.
- An employment certificate from the European institution must be attached to justify the exemption.
- The couple may claim joint deductions, such as for mortgage interest or insurance premiums.
Civil partners (PACS)
- Civil partners may file a joint tax return only if both partners are Luxembourg tax residents.
In the case of a joint return:
- The employee of a European institution must provide a certificate of employment stating their Luxembourg tax residence.
- If the EU institution employee is not a Luxembourg tax resident, only the partner employed in Luxembourg declares their income and claims deductions individually.
Important
Tax residence is a legal status for tax purposes and does not necessarily correspond to physical residence.
For example, an EU institution employee may live in Luxembourg but have their tax residence in another country.
Consequence: For civil partners, eligibility for joint taxation strictly depends on tax residence status, not on physical residence.
Joint tax return for mixed couples
If you are married or in a civil partnership (PACS) and you file a joint tax return (collective taxation), the salary paid by the European Union must not be included as taxable income.
You only need to attach to your tax return a certificate from the European institution (Commission, Parliament, CJEU, EIB, etc.) stating:
- your status as an EU official or agent,
- the start date of your employment.
This document serves to justify the exemption and ensures that the Luxembourg tax administration processes your return correctly.
Other income of EU officials subject to tax
Even though the base salary paid by the European Union is exempt, an EU official may still earn other income that remains taxable in Luxembourg:
- Bank interest, dividends, and capital gains on shares,
- Rental income from property located in Luxembourg (or abroad under certain conditions),
- Real estate capital gains and profits from shares or cryptocurrencies,
- Self-employment income, private pensions, or rental income from furnished property.