# Expat question regarding taxes in Lux



## peigibark97 (Mar 4, 2021)

Hello everyone,
I have a question regarding expat taxes in Europe. While I have done some extensive research (… at least it seems like I have) on what taxes I will have to pay as a US citizen relocating to Luxembourg for a job, I still have so many questions. It’s easy (and frustrating) to get lost in endless amounts of legal text and loosely translated webpages so I figured I would just post my question here in hopes that someone knows.
As a US citizen, what taxes will I have to pay in Luxembourg? I have seen a few take-home pay calculators and one of the biggest taxes taken out is for a pension. Will I have to pay this?


----------



## 255 (Sep 8, 2018)

peigibark97 -- Your questions:

1. "As a US citizen, what taxes will I have to pay in Luxembourg?" You'll certainly owe income taxes and social security taxes to Luxembourg, although you should review the U.S.-- Luxembourg Income Tax Treaty Luxembourg - Tax Treaty Documents | Internal Revenue Service (irs.gov) for particulars, along with the U.S.-- Luxembourg Social Security Agreement International Programs - U.S.-Luxembourg Social Security Agreement (ssa.gov) to ensure you are not being "double-taxed." You will also need to file your normal U.S. Tax return, but will generally be able to exclude your foreign earned income by utilizing IRS form 2555 2020 Form 2555 (irs.gov) and/or take a tax credit, of foreign taxes paid by utilizing IRS form 1116 2020 Form 1116 (irs.gov) There are of course, other taxes, like property tax and the EUs version of sales tax (VAT.)

2. "I have seen a few take-home pay calculators and one of the biggest taxes taken out is for a pension. Will I have to pay this?" Luxembourg's Social Security Tax is what you are probably reading as "pension." And yes, just like in the U.S., you'll be obligated to pay it (see the SSA document, above.) Fortunately, you won't have to also pay this to the U.S. See the table in the linked doc. to determine specifically for your personal situation: Agreement Between The United States And Luxembourg (ssa.gov) Cheers, 255


----------

