Practice area
Cross-Border Commuters DE/LU
Legal advice in Trier and the border region
Specialized Legal Counsel for Employees and Companies at the Germany-Luxembourg Intersection
Around 50,000 people commute daily between Germany and Luxembourg. Many of them are unsure which legal framework applies to them, where they pay taxes, and which social security institution is competent. We know. Fritz Zahnd and Joram Moyal are admitted as Avocats à la Cour in Luxembourg and as attorneys-at-law (Rechtsanwälte) in Germany – with Joram Moyal additionally admitted as a Solicitor in the United Kingdom. This combination is unique in the Greater Region (Großregion).
- —Employment law for cross-border workers (Grenzgänger)
- —Social security law Germany-Luxembourg
- —Tax law for cross-border workers
- —Double Taxation Agreement (Doppelbesteuerungsabkommen) D-L
- —Luxembourg employment law
- —Dismissal and severance pay (Abfindung)
- —Remote work (Homeoffice) regulations for cross-border workers
- —Pension law and retirement provisions
Who is a Cross-Border Worker (Grenzgänger) – and Why is This Legally Relevant?
A cross-border worker (Grenzgänger) is defined as a person who resides in one country and works in another, regularly returning to their place of residence. Special regulations in tax law, social security law, and in some respects employment law apply to this group of persons. The Double Taxation Agreement (Doppelbesteuerungsabkommen) between Germany and Luxembourg governs where taxes are paid. EU Regulation 883/2004 determines which social security scheme has jurisdiction. Both sets of rules are complex and are interpreted differently by the authorities of both countries.
- —Definition of cross-border worker status
- —Tax residence and right of taxation
- —Social security obligation in the country of employment
- —Impact of remote work (Homeoffice) on cross-border worker status
- —Special considerations for part-time work and multiple employers
Tax Law for Cross-Border Workers: Where Do I Pay Taxes?
Under the Double Taxation Agreement between Germany and Luxembourg, cross-border workers are generally taxed in Luxembourg. However, exceptions apply: Anyone who works from home (Homeoffice) for more than 19 days per year loses cross-border worker status for those days. Since 2024, new regulations for remote work days have been in effect, which we explain in detail. We provide legal counsel regarding tax returns in both countries and questions concerning double taxation.
- —Double Taxation Agreement D-L
- —Taxation of cross-border worker salaries
- —Remote work (Homeoffice) regulations as of 2024
- —Tax returns in Germany and Luxembourg
- —Tax treatment of bonuses and special payments
Employment Law: Which Law Governs My Employment Contract?
For cross-border workers employed in Luxembourg, Luxembourg employment law generally applies. In many respects, this is more employee-friendly than German law. The statutory minimum wage in Luxembourg is significantly higher (EUR 2,637 gross in 2024), employment protection against dismissal (Kündigungsschutz) is regulated differently, and severance pay provisions vary substantially. We advise cross-border workers regarding dismissals, severance negotiations, and employment disputes in Luxembourg.
- —Luxembourg employment law for cross-border workers
- —Dismissal and employment protection in Luxembourg
- —Severance pay (indemnité de départ)
- —Discrimination and workplace bullying (Mobbing)
- —Employment references and certificates (Arbeitszeugnis)
Social Security: Health Insurance, Pension, Unemployment Benefits
Cross-border workers employed in Luxembourg are generally insured under the Luxembourg social security system. This entails: Health insurance with the CNS (Caisse Nationale de Santé), pension insurance in Luxembourg, and unemployment benefits under Luxembourg law. Special rules apply in case of illness while working remotely (Homeoffice). We clarify what claims you hold and how to enforce them.
- —Health insurance (CNS Luxembourg)
- —Pension insurance and pension claims
- —Unemployment benefits in Luxembourg
- —Maternity and parental leave
- —Coordination in case of multiple employments
Frequently asked questions
Where do I pay taxes as a cross-border worker?
Under the Double Taxation Agreement D-L, generally in Luxembourg. However: Remote work (Homeoffice) days may result in a portion of the salary being taxed in Germany. As of 34 remote work days per year (as of 2024), the cross-border worker status is lifted for those specific days. The exact regulation depends on your individual employment contract and the number of remote work days.
Which health insurance fund has jurisdiction over me?
As a cross-border worker employed in Luxembourg, you are insured with the CNS (Caisse Nationale de Santé) in Luxembourg. Family members residing in Germany can be co-insured through you. In case of illness in Germany, you may utilize the services of German statutory health insurance funds, but must submit the costs to the CNS for reimbursement.
What happens if I am dismissed in Luxembourg?
Luxembourg employment law applies. Notice periods are statutory and depend on the length of service with the company. In the event of dismissal by the employer, you are entitled to severance pay (indemnité de départ) if you have been with the company for at least five years. We examine whether your dismissal was lawful and what claims you may assert.
Can I apply for unemployment benefits in Luxembourg?
Yes, provided you have worked in Luxembourg and meet the eligibility requirements. Luxembourg unemployment benefits (chômage) are applied for at ADEM (Agence pour le Développement de l'Emploi). The amount is 80 percent of the last salary, up to a maximum of 2.5 times the minimum wage. As a cross-border worker, you must register with ADEM in Luxembourg and the employment agency (Agentur für Arbeit) in Germany.
Initial assessment
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