German Cross-Border Workers Allowed to Telework 34 Days/Year from 2024

In Berlin on Thursday 6 July 2023, Luxembourg's Minister of Finance, Yuriko Backes, and Germany's Minister of Finance, Christian Lindner, signed a new amendment to the Luxembourg-Germany double taxation agreement.

This amendment will lead to tax simplifications for cross-border workers living in Germany, allowing them to work from home (telework) 34 days a year (up from the current nineteen days) before having to contribute to social security and taxes in their country of residence.

Minister Backes stated: "We are very pleased that we have agreed with our German partners on 34 days of home office for cross-border commuters from Germany. This gives both employees and companies more planning security. The upper limit also corresponds to the regulation that we have already found with Belgium and France, so that the same conditions apply to all cross-border commuters. I would like to thank my counterpart Christian Lindner for his support."

Minister Lindner commented: "Luxembourg is a valued neighbour of Germany. That is why I am pleased that today we are forging even closer ties between our countries. The extension of [this] rule to 34 days represents a significant reduction in bureaucracy on both sides of the border. We are thus simplifying the tax rule and adapting it to more flexible working. The relief will be felt directly by cross-border commuters. We are creating modern regulations for European and modern working."

The relevant regulations will apply from 2024.

In addition, the existing agreements on severance payments and a flat-rate distribution mechanism will be integrated.