“Alexis, I live in Thionville and work in Luxembourg. If we move to Luxembourg City, what does that change for our wealth in France?”
A great deal, and not only for your salary. Living in Luxembourg changes how your French investments are taxed, how your children will inherit, and the tax treatment of your contracts. Staying a cross-border commuter changes other things.
Luxembourg had 49,185 residents of French nationality on 1 January 2025 (STATEC), the country's second-largest foreign community, plus more than a hundred thousand cross-border workers coming in from France every day.
The treaty of 20 March 2018 governs income tax. No treaty governs inheritance. At Balmont Conseil, we also know Luxembourg through its insurers: that is where the contracts we place for our internationally mobile clients are held.
1. Why seek expert wealth management in Luxembourg?
Four points, depending on whether you move there or remain a cross-border worker.
- Remote working for cross-border workers. An employee living in France and working in Luxembourg can work remotely for up to 34 days a year without that work becoming taxable in France.
- No estate tax treaty. Each state applies its own law: Luxembourg largely exempts the direct line; France taxes heirs domiciled in France under Article 750 ter of the French Tax Code.
- Exit tax deferred automatically. As Luxembourg is an EU member, the deferral of payment is automatic, with no guarantee required.
- Your French-source income. Rents and capital gains on property located in France remain taxable in France, with a 7.5% solidarity levy if you are covered by the Luxembourg scheme.
2. The France ↔ Luxembourg framework in five verified points
Here is the applicable framework, checked against official sources as at 1st October 2026.
| French nationals on the register | 49,185 residents of French nationality on 1 January 2025 (STATEC). The 2025 consular report gives no breakdown for Luxembourg. |
| Income tax treaty | Yes — treaty of 20 March 2018, in force since 2019, replacing that of 1958. |
| Estate tax treaty | No. No treaty governs inheritance between France and Luxembourg: each state applies its own domestic law. |
| Exit tax — deferral of payment | Automatic deferral of payment, Luxembourg being a member state of the European Union. |
| CSG and CRDS on property income and capital gains | 7.5% for a person covered by the Luxembourg social security system: only the solidarity levy is due. |
On inheritance. In principle, Luxembourg does not tax the statutory share received in the direct line by a resident's children. France, however, taxes everything received by an heir domiciled in France for at least six of the last ten years (Article 750 ter of the French Tax Code), as well as assets located in France. A family whose children live in France therefore remains within the scope of French tax.
On cross-border workers. The 34-day tolerance for work outside Luxembourg is assessed per calendar year. Beyond it, days worked in France become taxable there from the first day.
On assurance-vie. A Luxembourg contract can be taken out from France as well as from Luxembourg: it follows its holder from one country to the other, and its assets are protected by the super-privilege under the Luxembourg law of 7 December 2015.
3. Our services: 360° support for expatriates and investors
Three workstreams, depending on your situation.
Cross-border worker or resident: the calculation
We compare, on the basis of your income and wealth, your position as a cross-border worker and as a Luxembourg resident: tax on your salary, taxation of your investments, social charges, passing on your wealth.
- Income tax in each scenario.
- Treatment of your French contracts after the move.
- Consequences for your heirs domiciled in France.
Passing on wealth without a treaty
We establish who would tax your estate, asset by asset, and organise gifts and beneficiary clauses accordingly, for as long as your children live in France.
Your contracts in Luxembourg
Luxembourg assurance-vie, dedicated internal funds, currency investments: we work with local insurers, including Lombard, Wealins and OneLife, and we calculate their fees in euros before any subscription.
4. Methodology: our way of working
We work in four stages, and at each stage you know where you stand.
- The initial review. We establish your actual situation: the make-up of your wealth, the project timeline, the situation of each member of the household, and the tax domicile of your heirs — because it is theirs that counts, not yours.
- The applicable framework. We set out, source by source and with its date, the framework that applies to you. What we do not know, we mark “to be confirmed” — never anything else.
- The choices. We present the options with figures and their respective consequences, and you decide. Wealth structuring comes after the decision, not before.
- Ongoing monitoring. An annual review, free of charge, to check that the framework has not moved — treaties are amended, incentive regimes are abolished, thresholds change.
5. What the firm offers you
What concretely sets our work apart.
- Sources, not claims. Every item in your file carries its reference and its date. You can check. It is the only way to work on a subject where most of the information available online is out of date.
- A single point of contact in France. We coordinate your local advisers; we do not replace them: the host country's domestic tax rules are handled with a qualified professional on the ground. Our role is to keep the whole picture consistent and to defend the French side of the file.
- Fees that are easy to understand. Fees disclosed before any commitment: fixed-price reviews, tailor-made engagements at €500 incl. VAT per hour, insurers' commissions on contracts taken out. The annual review is free of charge.
Frequently asked questions on Luxembourg
How many days can a cross-border worker work remotely?
Up to 34 days a year worked outside Luxembourg without those days becoming taxable in France. Beyond that, they are taxable in France from the first day. The social security rule is separate: it falls under the EU coordination regulations.
Will my children pay inheritance tax in France if I live in Luxembourg?
If they have been domiciled in France for at least six of the last ten years, yes: Article 750 ter of the French Tax Code allows France to tax everything they receive. No treaty governs inheritance between the two countries.
Does the exit tax apply if I go to Luxembourg?
Yes, if your securities exceed €800,000 or if you hold at least 50% of a company's profits (Article 167 bis of the French General Tax Code). Payment is automatically suspended, without guarantee, but filing a tax return remains mandatory.
Do you have to live in Luxembourg to take out a Luxembourg assurance-vie policy?
No. A French resident can take out a Luxembourg contract; he then benefits from French assurance-vie taxation, including the €152,500 transferred per beneficiary without tax (Article 990 I of the French Tax Code), and from Luxembourg asset protection.
Will I pay CSG on my French rental income?
If you are covered by Luxembourg social security, you pay only the 7.5% solidarity levy on your French-source property income and real estate capital gains, instead of 17.2%.
In summary
Luxembourg settles income tax with France through the 2018 treaty and suspends the exit tax automatically, but does not settle inheritance.
For a family whose children live in France, the transmission of wealth remains French. This is what needs to be prepared for, whether one settles down or remains a cross-border worker.
Firm's fees: €500 incl. VAT per hour. Annual follow-up is free of charge.
Let's review your situation
A thirty-minute conversation is enough to compare your position as a cross-border worker with your position as a resident. You can also start with a free contract X-ray.
Other destinations
United States · Canada · Germany · Israel · Morocco · Algeria · Netherlands · Australia · Lebanon · Côte d'Ivoire · Ireland · Greece · Monaco · Andorra · Cyprus · Jordan · Brazil · Mexico · Senegal · Tunisia · United Kingdom · Switzerland · Belgium · UAE · Mauritius · Asia · Middle East · Investing in France from abroad — or return to all of our expatriation destinations.
