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By Julien LAMOTTE, Tax Partner, and Caroline GALAND, Senior Manager, Deloitte Tax Consulting S.à r.l.
Although it did not arrive as a Christmas gift, it was presented as a New Year’s offering. On 6 January 2026, the Luxembourg government released draft Bill No. 8676 on the simplification of the individual tax system. This reform, which has been anticipated since 2013, is expected to take effect in 2028. Progress has been gradual, with the first step being the introduction—during the 2017 tax reform—of the option for taxpayers to elect individual taxation.
An overview of the changes
The Luxembourg individual taxation system has long been structured around different tax classes, reflecting the underlying...
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