LUXEMBOURG - TAX CONSIDERATIONS ON SHORT-TERM LETTINGS - Income, VAT, and City Tax

Sep 19, 2026

Guide prepared by an independent third-party law firm outlining key Luxembourg tax considerations for providing short-term accommodation. Covers income tax, value added tax (VAT), and city tax (only in Mamer), and explains why timely, accurate filing and payment are the individual’s responsibility. Includes guidance on rental income thresholds, applicable tax rates, and how to file relevant forms (Form 100, Form 163, and Form 190). Notes potential platform reporting by Airbnb and recommends checking official sources or qualified professionals.

LanguageEnglish

CategoryLetters

FormatPDF

Pages8

Reading Time3 min

AccessFree to download

Income taxes

Overview and taxable threshold

Tax rates and unemployment fund surcharge

Filing and payment deadlines

VAT

City tax (Mamer)

Reporting and documentation

Airbnb income reporting risk

Typical deductible expenses

This guide has been prepared by an independent third-party law ﬁrm November 2023 LUXEMBOURG – TAX CONSIDERATIONS ON SHORT-TERM LETTINGS The following information is a guide to help you get started in learning about some of the tax requirements that might apply to you when providing short-term accommodation in Luxembourg. Tax can be tricky and it is important to ensure that you keep up to date with your tax obligations and remain tax compliant. The timely preparation, ﬁling and payment of taxes are your responsibility. If you are supplying short-term accommodation in Luxembourg, you should make sure that you understand each of the following types of taxes, and pay the ones that apply to you: ● Income taxes ● Value added tax (VAT) ● City tax (only in Mamer) We draw your attention to the fact that Airbnb may have an obligation to report income earned by users of the platform. Therefore, if there is a mismatch between the information reported by Airbn b and the income you reported in your annual income tax return, the tax authorities may ask you questions. Please understand that this information is not comprehensive, and is not intended to be legal advice. If you are unsure about your local tax obligations, we encourage you to check this with oﬃcial local sources, or to seek advice from qualiﬁed professionals. Please note that we do not update this information in real time, so you should conﬁ rm that the laws or procedures have not changed recently. INCOME TAX Where an individual earns income in Luxembourg, it is likely that they will be required to pay a percentage of this income to the Luxembourg direct tax authorities. Below is a brief outline of the tax that may arise on income earned from short-term lettings in Luxembourg and some information on how this tax can be paid over to the Luxembourg direct tax authorities. Luxembourg's tax year runs from 1 January to 31 December. Coming within the charge to income tax in Luxembourg. If you are in receipt of rental income that is higher than €600, then the entire amount should be declared and subjected to taxation. However, it might be that no taxes will actually be due if the total taxable income ( including other sources of income) is lower than the ﬁ rst tax bracket (and depending on the family situation of the taxpayer) . Tax rates range from 0% to 42% and a surcharge for the unemployment fund amounts to 7% or 9% depending on the total taxable income. Therefore, the maximum effective tax rate is 45.78%(42% x 1.09) . The following are the single payer income tax rates ( including surcharge for unemployment fund): ● € 0 – 11,265 ● € 11,266- 13, 137 ● € 13, 138 – 15,009 ● € 15,010 – 16,881 ● € 16,882 – 18,753 ● € 18,754 – 20,625 ● € 20,626 – 22, 569 ● € 22, 570 – 24, 513 ● € 24, 514 – 26,457 ● € 26,458 – 28,401 ● € 28,402 – 30,345 ● € 30,346 – 32,289 ● € 32,290 – 34,233 ● € 34,234 – 36, 177 ● € 36, 178 – 38, 121 ● € 38, 122 – 40,065 ● € 40,065 – 42,009 ● € 42,010- 43,953 ● € 43,954- 45,897 ● € 45,897-100,002 ● € 100,003-150,000 ● € 150,001-200,004 ● € 200,005 and above 0% 8. 56% 9. 63% 10.70% 11.77% 12.84% 14.98% 17. 12% 19.26% 21.40% 23. 54% 25. 68% 27.82% 29.96% 32. 10% 34.24% 36.38% 38. 52% 40. 66% 41.73% 42.80% 44. 69% 45.78% A dependency contribution of 1.4% is also due. More information on this can be found on the Luxembourg direct tax website. Reporting tax in Luxembourg. If you are ﬁling a tax return in Luxembourg you must use a Form 100 (tax return)/ Form 163 (withholding tax adjustment) . A Form 190 must also be completed, if you are in receipt of rental income, and ﬁled as an appendix to the Form 100 tax return. Returns are usually ﬁled by paper mail with the tax authorities or electronically on the dedicated website "MyGuichet": Reporting tax- ﬁling deadline. The deadline for ﬁling a Form 100 for the ﬁscal year is 31 December of the

FAQs

When does rental income from short-term lettings become taxable in Luxembourg?

If rental income is higher than €600, the entire amount should be declared and subjected to taxation. Tax may still be due depending on total taxable income and family circumstances.

Which Luxembourg tax forms are mentioned for reporting short-term letting income?

The guide states that Form 100 is used for the tax return and Form 163 for withholding tax adjustment, and that Form 190 must be completed as an appendix when rental income is received.

What are the filing deadlines for Form 100 and Form 163?

For both forms, the deadline is 31 December of the year following the end of the tax year, and the guide states there is no extension for the Form 163 deadline.

Sep 19, 2026

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