💻 How to get started as an IT freelancer in Luxembourg?

Are you considering a freelance career combining freedom and technical challenges in the heart of Europe? Being an IT freelancer in Luxembourg certainly presents specific challenges: local regulations, client prospecting, administrative management… But rest assured, this article details the key steps to get started with peace of mind. Legal status (including umbrella employment ), tax implications , and specificities of the Luxembourg IT market – we cover the essentials. The goal? Transform your expertise into a sustainable business while optimizing your establishment as a freelancer in Luxembourg . A promising path for those who master the local cogs!

Summary

1. Possible legal statuses for an IT freelancer in Luxembourg
2. How to register as a self-employed person in Luxembourg?
3. Taxation of freelancers in Luxembourg: taxes, VAT and exemptions
4. Insurance and social protection for freelancers
5. Cross-border freelancing: what rules apply?
6. Find IT missions
7. Optimizing your freelance activity
8. Support structures

What are the possible legal statuses for an IT freelancer in Luxembourg?

The legal framework and installation formalities represent a key step for independent IT consultants in Luxembourg . A precise understanding of the legal specificities is necessary to launch your activity in compliance with local regulations .

The choice of legal structure requires an analysis adapted to your professional profile and the nature of your projects.

• The sole proprietorship (self-employed)
  • Ideal solution for those looking for a lightweight, quick-to-implement structure. This status includes:
    • Simplified registration at the Single Business Window .
    • A tax on income (and not on companies).
    • Unlimited liability, meaning your personal assets can be committed in the event of difficulties.
    • Billing and affiliation obligations with the CCSS (Joint Social Security Fund).
      
• The SARL or SARL-S (Limited Liability Company – Simplified)
  • This option is recommended for consultants with more complex projects or wishing to protect their personal assets.
    • Classic SARL : requires a minimum capital of €12,000 .
    • SARL-S (simplified) : accessible from €1 of capital.
    • Liability is limited to the capital invested.
    • More cumbersome management (bookkeeping, tax declaration, etc.).
      
• Salary portage
  • Ideal for those who wish to avoid the constraints of business management.
    • Allows you to benefit from employee status , with associated social security and retirement contributions.
    • A portage company takes care of invoicing and salary payments.
    • In return, management fees are charged (generally between 5% and 10% of turnover).

Each option has specific characteristics that should be evaluated based on your profile and the expected duration of the assignments. Note that Luxembourg does not have a self-employed (micro-entrepreneur) status like France. The self-employed worker is the closest equivalent.

Registration with official Luxembourg authorities requires special attention. Specialized platforms such as Justarrived.lu assist candidates in these procedures . In practice, obtaining a VAT number requires a complete file that varies depending on the legal form chosen – identity document, proof of address and a detailed description of the services offered are generally required.

How to register as a self-employed person in Luxembourg?

Registering an IT freelancer in Luxembourg involves several essential administrative steps. First, you must register with the Single Business Center (Guichet Unique des Entreprises ), which centralizes business creation applications. To do this, the freelancer must provide several documents, including a copy of their identity document, proof of address, and a detailed description of their business.

Once this first step has been validated, registration with the Chamber of Commerce or the Chamber of Trades , depending on the nature of the services provided, is required. This formality allows you to obtain an identification number necessary for all commercial and contractual transactions.

At the same time, it is essential to join the Caisse Commune de Sécurité Sociale (CCSS) in order to benefit from social security coverage. This affiliation involves the payment of social security contributions that vary depending on the income generated by the activity. Registration with the Trade and Companies Register (RCS) is also required for certain legal structures such as the SARL or SARL-S.

Finally, any company or self-employed person carrying out a taxable activity must apply for a VAT number from the Registration, Estates and VAT Administration (AED) . This registration is mandatory in order to legally invoice customers and comply with current tax obligations.

Once all these steps have been completed, the freelancer can officially begin their activity in Luxembourg, ensuring that they comply with the resulting accounting and tax obligations.

What are the tax rules for freelancers in Luxembourg? Taxes, VAT, and exemptions

The tax regime for freelancers in Luxembourg varies depending on the legal status adopted. Self-employed individuals in sole proprietorships are taxed on their personal income according to a progressive scale ranging from 0% to 42%, while companies such as SARLs are subject to corporate income tax, set at 16% from 2025 for companies with taxable income exceeding €200,000 , and at 14% for those with taxable income less than or equal to €175,000 . In addition, there is a 7% contribution to the employment fund and a municipal tax, which varies depending on the location of the company. For example, the overall corporate tax rate in Luxembourg City will be reduced to 23.97% in 2025.

Regarding VAT, freelancers must register with the French Registration, Estates and VAT Authority (AED) if their annual turnover exceeds €50,000 from 2025. The standard VAT rate is 17% , but some services benefit from reduced rates: 14% for certain energy products, 8% for specific services such as bicycle or shoe repairs, and 3% for essential goods and services such as pharmaceuticals and books. When providing services to customers located in the European Union, the reverse charge mechanism applies, transferring the VAT declaration obligation to the customer.

Finally, tax breaks exist to encourage new technology companies and startups. Under certain conditions, a partial tax exemption may be granted to startups. Additionally, financial aid and grants are available to support innovation and digitalization, facilitating the growth of IT freelancers who wish to invest in ambitious technology projects.

What insurance and social protection are available for freelancers?

Social security for freelancers in Luxembourg is based on membership in the CCSS (Communal Social Security Fund) , which guarantees coverage for health, maternity, retirement, and dependency insurance. However, this coverage may not be sufficient depending on individual needs. This is why many freelancers take out supplementary insurance to protect themselves against professional and personal risks.

Professional liability insurance is essential for IT consultants, as it covers potential damages caused to a client in the event of negligence, delivery delays, or technical issues affecting a project. Life and disability insurance is also recommended to prevent loss of income in the event of prolonged incapacity to work. Additionally, taking out private health insurance can improve reimbursements for medical and hospital care, which can sometimes be limited by public coverage.

The cost of these insurance policies varies depending on the freelancer’s turnover and the coverage chosen. It’s therefore wise to compare several offers to optimize your protection while controlling your expenses.

Cross-border freelancing: what rules apply?

Many IT consultants in Luxembourg reside in France, Belgium or Germany, which implies specific tax and administrative obligations.

From a tax perspective, a freelancer is generally taxed in their country of residence. However, tax treaties signed between Luxembourg and its neighbors help avoid double taxation. Furthermore, a consultant working more than 34 days per year outside Luxembourg (particularly in France) may have their tax burden shared between the two countries.

Regarding social security, freelancers working mainly in Luxembourg must register with the CCSS . However, if more than 25% of the work is carried out in the country of residence , it becomes mandatory to contribute to the social security of that country. Additional administrative procedures, such as requesting the A1 form , can be used to certify correct affiliation.

Finally, VAT rules differ depending on the client’s location. A freelancer invoicing a company located in another EU country applies the reverse charge mechanism, where the client declares the VAT in their country. However, for services provided to individuals abroad, the VAT of the client’s country of residence may apply. These specificities often make the assistance of a chartered accountant necessary to avoid any invoicing errors.

Where to find IT missions in Luxembourg?

For independent IT consultants, identifying the right platforms like ICTjob.lu, Moovijob, and LinkedIn is a key step in actively seeking projects . These channels account for the majority of current opportunities.

Platform	Specificities	Potential Costs
LinkedIn	Important recruitment channel, varied offers (freelance and salaried). Excellent for networking .	Free (basic version). Paid options for more visibility and recruiting tools.
Moovijob	Job offers for freelancers in Luxembourg .	Variable, depends on the services used.
ICTjob.lu	Specializing in IT jobs in Luxembourg .	Variable, depends on the services used.
Freelance.com	General platform with offers for IT.	Commissions on completed missions. Subscriptions possible.
Freelancermap	General platform with offers for IT.	Commissions on completed missions. Subscriptions possible.
Beelance	Connecting IT/digital freelancers and companies in Luxembourg and Switzerland .	Variable, depends on the services used.

Caption: This table compares the main platforms for independent IT professionals in Luxembourg, detailing their specific features and associated costs. It’s important to first check the pricing conditions.

It’s worth noting that local networking remains crucial for securing IT contracts . Rather than simply listing your skills, highlight concrete achievements – this strengthens your credibility with recruiters. For example, a profile specializing in software development could highlight complex projects delivered on time . Regarding the daily rate, its calculation must integrate both your expertise and the specificities of the Luxembourg market. Local companies are also showing a growing interest in independent IT experts, particularly in view of the need for specialized skills .

Finally, don’t hesitate to regularly consult public calls for tender. Some missions require precise knowledge of the standards in force in the Grand Duchy , which benefits candidates who are familiar with this context. A freelance career therefore requires active monitoring, both technological and regulatory .

How to optimize your freelance activity?

Skills development

To maintain competitiveness, keeping up with technological developments in the Luxembourg IT sector is essential. Adapting to local needs requires acquiring targeted certifications and actively monitoring areas seeking independent IT consultants.

Continuing education remains a central pillar for digital experts. Its impact on compensation and project duration is significant. Official certifications add real value to your profile with recruiters. To identify the ones that matter, analyze job offers published in Luxembourg: you’ll identify the skills companies are looking for .

Work-life balance

Time management and workspace design are critical to the success of freelancers. To maintain efficiency, it’s best to set fixed time slots, prioritize tasks , and use scheduling tools. These practices help prevent overwork while still meeting deadlines.

Luxembourg’s landscape offers coworking spaces and technology clusters equipped for software experts. These spaces facilitate networking while providing an environment conducive to concentration. An ergonomic office, suitable lighting, and controlled acoustics are key assets for maintaining a sustainable work-life balance.

What support structures are available?

Choice of legal status

Comparing the advantages of a sole proprietorship versus a limited liability company (SARL) or limited liability company (SARL-S) is essential to guide your business plan. It’s important to note that each option meets distinct needs when it comes to self-employment.

Payroll outsourcing in IT also deserves special attention. This hybrid practice offers advantages in terms of administrative simplicity —a significant asset for newcomers. In Luxembourg, this solution combines operational independence and social security tailored to technical profiles. Our company SELKEA, for example, allows IT consultants to benefit from a salaried environment without a complex legal structure.

Useful resources

Several institutional and private stakeholders support independent entrepreneurs in their local establishment. Identifying these contacts is an essential lever for developing your project in the Grand Duchy.

To help you in your efforts, several types of assistance are available for consultants:

• Identify public subsidies dedicated to business creation , particularly those targeting technological innovations
• Study the subsidized loans offered by partner banks in the IT and software sectors
• Check the social exemption schemes for young companies , which are particularly advantageous during the first three years of activity.
• Apply for professional mentoring programs , real accelerators for structuring your search for clients and managing your career

We advise you to contact the relevant counters directly to confirm your eligibility for these systems.

Standard contract templates for IT projects help secure your commitments. Careful reading is essential before signing: a precise description of the assignment, fixed term, payment terms (including the daily rate), and confidentiality clauses must be clearly stated. In case of ambiguity regarding legal terms, the advice of an expert in new technology law becomes essential.

Becoming an IT freelancer in Luxembourg requires solid preparation, but opens the way to real autonomy and varied perspectives . To succeed, it is important to master legal obligations , cultivate a professional network and optimize your daily management. Indeed, these elements form the basis of a sustainable activity. Get started without delay: the Luxembourg market is full of opportunities for those who know how to organize themselves, allowing you to give new impetus to your career.