The 183-day rule: employees on assignment abroad and tax treaties

The 183-day rule is a clause in a tax treaty. This page refers to the Luxembourg version. Under the France-Luxembourg tax treaty, an employee resident in one country who works in the other remains taxable in their country of residence if three conditions are met: a stay not exceeding 183 days, an employer who is not resident in the country where the work is performed, and remuneration not paid through a permanent establishment located in that country. If this threshold is exceeded, the other country can tax the employee.

This page refers to only one convention, that of Luxembourg (Article 14 of the consolidated text, and commentary BOFiP BOI-INT-CVB-LUX-20). It does not address other conventions, as their wording may differ. It does not cover cross-border workers, teleworking, social security contributions, or deferred compensation.

Three "183 days" that have nothing to do with each other

For the third, the page does not publish a stay threshold: it must be checked with the F62 sheet (verified on 01/01/2026) before deciding.

For the second scenario, the BOFiP BOI-RSA-GEO-10-20, in effect since June 8, 2026, applies to postings exceeding 183 days over 12 consecutive months. Cross-border workers and civil servants are excluded (paragraph 80). For business development activities, fact sheet F31442 (verified on April 15, 2026) cites a threshold of 120 days. This scheme is a domestic tax exemption. It does not replace consultation with the relevant agreement.

What the France-Luxembourg Convention Says

The agreement was signed in Paris on March 20, 2018. It was amended by an addendum on October 10, 2019 and by an addendum on November 7, 2022 (consolidated text published on impots.gouv.fr).

The principle: the state where the employment is carried out

Article 14, paragraph 1, states that wages received by a resident of a State in respect of employment are taxable only in that State, unless the employment is exercised in the other State. If the employment is exercised in the other State, "the remuneration received in respect of that employment is taxable in that other State." The French tax authority (BOFiP) summarizes this as follows: wages from private sources are taxable in the State where the professional activity is carried out (BOI-INT-CVB-LUX-20, paragraph 250).

The exception: three cumulative conditions

Paragraph 2 of Article 14 stipulates that remuneration is taxable only in the State of residence if the following three conditions are met:

1. the employee stays in the other State for a period or periods "not exceeding in total 183 days", during any twelve-month period beginning or ending during the fiscal year in question (consolidated text); ;
2. the remuneration is paid by an employer, or on their behalf, who is not a resident of the other State; ;
3. the cost of remuneration is not borne by a permanent establishment that the employer has in the other State.

The exception only needs to be broken if one condition is met. The 183-day threshold is therefore just one of three possible causes.

How do we count the days?

The BOFiP commentary adopts the method of days of physical presence (BOI-INT-CVB-LUX-20, paragraph 270). The day of arrival and the day of departure are counted. Any fraction of a day spent in the State counts as a full day, and Saturdays, Sundays, public holidays, and vacation days are considered days of presence. Days of simple transit between two points outside the State of activity are excluded. Paragraph 280 considers the total duration of all stays: if it exceeds 183 days, taxation accrues to the State where the stays are completed, for all remuneration related to the activity carried out during these stays.

This is confirmed in the updated text

Two points need to be verified against the current consolidated text and its amendments before any decision is made: the 183-day assessment period, and point 3 of the protocol (a rule specific to certain employees, based on a number of days worked). The page does not publish any figures on this point 3: this should be verified with the source.

The BOFiP BOI-INT-CVB-LUX-20 is dated 23/02/2021. The latest amendment, dated 7 November 2022, is subsequent to this version of the commentary. The consolidated text indicates, in a note, that point 3 of the protocol was modified by this amendment.

The convention takes precedence over domestic law

When a treaty applies, its definition of resident takes precedence over the definition of tax domicile under domestic law (BOI-INT-DG-20-10-10, paragraph 40). In the absence of a treaty, the domestic law of each country applies (economie.gouv.fr, page dated 24/04/2026). See our page on the list of treaties to determine if a country has a treaty with France.

The 183-day rule: a numerical example (fictitious profile)

Situation. Sophie, a tax resident of France, is employed by a French-resident employer. In 2026, she undertakes several assignments in Luxembourg. Assumptions: her employer does not have a permanent establishment in Luxembourg that pays her salary, she has no other stays in Luxembourg during the twelve months preceding and following these stays, and every day of each stay, including weekends, counts as a day of presence.

Issue. Does his stay exceed 183 days, including arrival and departure?

Strategy. Count the days of physical presence for each stay, including arrival day and departure day, then add them together.

Result.

In scenario A, the duration condition is met. The other two conditions are assumed to be met (see assumptions), therefore the exception applies. In scenario B, the threshold is exceeded by 2 days: according to the BOFiP (French Official Tax Bulletin), taxation falls to Luxembourg on all remuneration related to the activity carried out during the stays.

This profile is fictitious. The figures illustrate the count and do not reflect your situation (count by dates, arrival and departure included).

The 183-day rule: what changes depending on your situation

• The applicable convention : the wording of the threshold, the period and the conditions may differ from one country to another.
• Your employer : resident or non-resident of the state where you work, presence of a permanent establishment.
• The actual count of your days of presence, stay by stay.
• Specific points of the protocol, including point 3 of the France-Luxembourg convention.
• Your status : seconded employee, cross-border worker, public servant, with their own specific rules.

The rule depends on your situation. No results are guaranteed.