Cross-border commuters in Luxembourg: Financial consequences for the German state.

Cross-border commuters in Luxembourg: Financial consequences for the German state.

According to a report by www.volksfreund.de, Luxembourg pays a lot of money in wages and salaries for German cross-border commuters. This represents a loss of blood for the Luxembourg state, as far less wages flow back into the state coffers.

The payment of wages and salaries to German cross-border commuters in Luxembourg amounts to over 15 billion euros, which is a significant sum. Most of these cross-border commuters spend a large part of their lives in Germany, which means that only a small part of the income tax and social security contributions goes back to the Luxembourg tax office. This leads to a significant loss of tax revenue for the Luxembourg state.

It is difficult to estimate how the situation will affect the Luxembourg market in the long term, but current figures suggest that the state will face a significant loss of revenue. This could lead to an adjustment of taxation rules or other measures by the Luxembourg government to compensate for the loss of revenue.

Overall, the situation clearly shows the complex impact of cross-border employment on the financial sector and the tax rate in Luxembourg. The government is expected to take measures to diversify sources of revenue and offset losses.