©KBL European Private Bankers (Wealth Management) PUBLICATION DATE: AUGUST 2012. Are you intending to move to Luxembourg and settle there? Here is some advice to help you. We have written this brochure in line with the steps to be followed with the assumption that you are currently living in a country near Luxembourg and that you have decided to transfer your residence there.

1. practical Guide
wealth to settLing
management
Grand Duchy of
luxembourg

2. Table
of contents
01 the family home
page04 Info – internet sites
buying
Tax credit for main residence
VAT on property
02 Settling in Luxembourg
administrative steps
page08
At the commune
Declaration of arrival
The tax card
Parking permit in residential areas
Registering your dog
Registering your vehicle
What to do
Your driving licence
Registering with the embassy
of your country of origin
03 Social security
page14
health insurance
Compulsory health insurance
Optional supplementary health insurance
pension insurance
Our estate planning department is available to provide you with all the details you
may want. Our experts can analyse your financial situation and let you know what
implications Luxembourg law may have on it, both from a civil (matrimonial regime,
wills) and tax (allocation and structuring of your wealth) point of view. They can also put
you in contact with local professionals (notaries, estate agents, accountants, insurers
...) and guide you through the steps to follow when settling in the Grand Duchy.

3. Practical guide to settling in the Grand Duchy of Luxembourg
Practical guide
to settling in the
Grand Duchy of Luxembourg
Are you intending to move to Luxembourg and settle there ? Here
is some advice to help you.
We have written this brochure in line with the steps to be followed,
beginning with the assumption that you are currently living in a
country near Luxembourg and that you have decided to transfer
03
your residence there.
You will have to find accommodation and probably buy it and then
follow the various administrative steps to settling in Luxembourg
and living there on a daily basis.
There are also many social benefits in daily life, which we also
describe.

4. 01
Practical guide to settling in the Grand Duchy of Luxembourg
the family
home
info – internet sites
If you have decided to move to the Grand Duchy
of Luxembourg and are looking for long-term
accommodation, we recommend that you make an
appointment with an estate agent. The estate agents
can suggest property to rent or to buy. Small ads for
property to rent or buy can be found in Lux-bazar, the
Luxemburger Wort, point 24, Lux-post Weekend and in
l’Essentiel.
04
Some real-estate websites:
ÆÆ www.athome.lu ÆÆ www.immostar.lu
ÆÆ www.habiter.lu ÆÆ www.advanceimmoblier.lu
ÆÆ www.immofinder.lu ÆÆ www.wort.lu
To find out about the tax aspects of acquiring a property you can look
at www.aed.public.lu.
Buying
Real-estate transactions in the Grand Duchy of Luxembourg are subject to
a registration fee of 7% (a proportional fee of 6%, plus a stamp duty of 1%), unless
it is a sale of property to be built, subject to VAT (see below).
Tax credit for main residence
A specific law stipulates that any resident in Luxembourg, when registering a notarial
act for the acquisition of a personal residence, may benefit from a tax credit of a
maximum of € 20.000 (double in the case of joint acquisition by both spouses)
on the registration fees and stamp duty normally due.

5. Practical guide to settling in the Grand Duchy of Luxembourg
This means that in the case of joint acquisition of a property, the registration fee may
be reduced by up to € 40.000. The administration will however in all cases make a
minimum charge of € 100 for registration fees.
People not yet living in Luxembourg, but who intend to settle there, will not receive
the tax reduction stipulated by law immediately. The reduction will only be applied
once the property is actually occupied. To get this refund, the buyer must send a
written request to the competent tax office, together with a residence certificate.
The granting of a tax credit is subject to the following conditions
(it is essential that they are indicated in the notarial act)
ÆÆ You must live in the as illness of the buyer making
acquired property yourself, occupation of the property
within a period of two years impossible, duly certified
(four years in the case of a by a medical certificate, or
building plot or a property the death of the spouse or
under construction) and for a divorce or the dissolving
period of two years (except of a legal partnership
05
in the case of force majeure,
by means of exemption ÆÆ the property may not be
from the head of the land rented out or used for other
registration department, such purposes for two years.
After two years’ occupation, the buyers are free to sell their property,
since the tax credit has become final. To obtain a new reduction, two
conditions in particular must be met: (i) the buyer must still have a tax
credit balance and (ii) this new property must be lived in personally.
If the deadline or period for living in the property is not met, the reduction granted
for the transaction in question will have to be repaid, together with legal interest from
the day on which the reduction was granted.

6. Practical guide to settling in the Grand Duchy of Luxembourg
VAT on property
To stimulate property construction, the Luxembourg state applies an extra-low rate
of 3% to the construction and renovation of a property provided that it will used
as a main residence, either directly by himself, or indirectly by a third party (tenant).
The buyer, who pays a VAT rate of 3 % may either pay 15% VAT and be refunded
12%, or pay immediately the rate of 3 % after the developer responsible for the work
has sent the request to the land registration and estates department for approval.
This procedure for refunding the difference in VAT is however
applicable
ÆÆ for buying construction ÆÆ for invoices of less than
materials € 3.000 excluding tax
(when the owner carries
out the work himself) ÆÆ if the effective allocation
of the property has not
ÆÆ for the sale of new yet been established
06
properties not yet during construction or
allocated and for sales renovation of the property.
contracts for properties
to be built insofar as they
relate to constructions built
when the contract is signed
Any right to a VAT refund lapses after 5 years dating from 31 December of the
calendar year to which the tax to be refunded relates. The request must be for an
amount in excess of € 3.000 before VAT and cover a minimum period of 6 months.
The amount reimbursed may not exceed € 60.000 per property constructed
and/or renovated.

7. Practical guide to settling in the Grand Duchy of Luxembourg
All requests, on the appropriate forms, must be sent to :
ADMINISTRATION DE L’ENREGISTREMENT ET DES DOMAINES
07
Bureau
d’imposition XII Remboursement TVA-Logement
Address 7, rue du Plébiscite, BP 31, L-2010 Luxembourg
Telephone (+352) 4490 5319
If, in the two years following the end of the work, the property is used for other
purposes than a main residence, the tax advantage must be completely repaid with
interest at the legal rate from the date it was granted.
The extra-low rate of 3% applies both to the construction and the renovation of
a property. Renovation of property includes
ÆÆ major improvement works carried out following the acquisition of
a property. This work must be finished within 5 years of the acquisition
of the property which must have been built least 20 years ago.
ÆÆ major improvement works to a property built at least 20 years before
the work begins. This work must be finished two years from its start date.

8. 02
Practical guide to settling in the Grand Duchy of Luxembourg
Administrative steps
to settling in Luxembourg
At the commune
nb: Do not forget to remove yourself from the population register in your country of
origin so as to avoid being registered in two countries. Continuing to be registered
in your country of origin may constitute a presumption of continued domicile in that
country.
Declaration of arrival
Every person who takes up residence in a Luxembourg commune must make a
"declaration of arrival" at the commune within 8 days. At your request the commune
08
can provide you with a certificate of residence (useful for your employer or for
registering your vehicle).
Within 3 months you should make a “statement of registration” on the basis of
which you will receive a “registration certificate”. The same applies to all members
of your family. .
To make this declaration, you must have the following documents,
originals or certified copies:
ÆÆ valid identification card ÆÆ for those not working
(or a passport) or retired (to avoid
becoming a burden to
ÆÆ civil status documents the Luxembourg welfare
(family register, marriage system), proof of adequate
certificate or civil partnership resources, equivalent to
certificate, children’s birth the guaranteed minimum
certificate, decree of income and proof of
divorce if appropriate) existing medical insurance
ÆÆ or employees, a ÆÆ proof that you are no
work contract longer registered in the
commune you have left.
ÆÆ for the self-employed,
residence permit
or equivalent
Each commune may ask for further documents. Usually you can find
details of this on the commune’s website.

9. Practical guide to settling in the Grand Duchy of Luxembourg
To help you search, the Luxembourg state has set up a general website called
"www.guichet.lu" where you can find detailed information and where you can
download the forms you need and even carry out some administrative procedures
online.
If you are moving to Luxembourg-City, you can look at its own website
"www.vdl.lu".
You can also go to the central administration office, the Bierger-Center. No
appointment is necessary.
bierger-center (luxembourg-ville)
Address 26A, boulevard Royal, L-2449 Luxembourg
Telephone (+352) 4796 2200
Fax (+352) 2627 0999
09
email bierger-center@vdl.lu
If the documents are not in French, German or English they will have to be translated
by a sworn translator.
After 5 years uninterrupted residence in Luxembourg, you can obtain a
“permanent residence permit”.

10. Practical guide to settling in the Grand Duchy of Luxembourg
Tax card
As an employee working in the Grand Duchy of Luxembourg or a pensioner taxable
in Luxembourg, you must have a tax card. The information given on this card is
a determining factor for establishing the rate of withholding tax to be applied to
payments made under a contract of employment and pensions paid by a Luxembourg
pension fund and to fix social security contributions.
If you are working in Luxembourg for the first time you must request a tax card in
person from your local commune. Once you have received the card you should give
it to your employer or the Luxembourg pension fund.
Persons not receiving any professional income (salary or pension) in Luxembourg will
have to contact the Tax Office in order to determine their tax situation.
ADMINISTRATION DES CONTRIBUTIONS DIRECTES
BUREAU D’IMPOSITION RTS LUXEMBOURG 2
Address 18, rue du Fort Wedell, L-2982 Luxembourg
10
Telephone (+352) 40 800-1
Fax (+352) 44 800-3300
internet www.impotsdirects.public.lu
Parking permit for residential zones
For the regulated parking zones where you have to pay in the various communes in the
country, the parking permit entitles you to free, unlimited parking in the sector of your local
commune.
Each commune determines, by municipal ordinance, the residential parking zones
and the conditions for granting residential parking permits and how they work.
To get a parking permit you must live in a residential parking sector, be registered
with the commune and be the owner or registered keeper of one or more vehicles.
The residential parking permit is subject to an annual fee which varies from one
commune to another.

11. Practical guide to settling in the Grand Duchy of Luxembourg
Registering your dog
To improve the control and identification of dogs
and oblige their owners to respect certain security
measures, legislation requires the following:
- the electronic identification of the dog by a certified
veterinary surgeon;
- the registration of the dog with the local commune,
indicating its breed and an anti-rabies vaccination
certificate;
- the payment of an annual fee.
Certain communes also require a copy of your civil liability insurance policy.
Registering your vehicle
When settling in Luxembourg, you are obliged to register your vehicle with the
société nationale de contrôle technique (snct) (National roadworthiness test centre)
11
as soon as possible after your arrival and at the latest 6 months after the date of your
declaration of arrival in the commune where you live.
société nationale de contrôle technique - snct
Address 11, rue de Luxembourg, L-5230 Sandweiler
Telephone (+352) 35 72 14 - 1
internet www.snct.lu
The snct has three different sites: Sandweiler, Esch-sur-Alzette, Wilwerwiltz.
Make sure you have the following documents when registering:
ÆÆ residence certificate ÆÆ the original invoice
for the vehicle
ÆÆ Social security number
ÆÆ original car registration
ÆÆ EU certificate of document
conformity (provided by
the vehicle’s manufacturer) ÆÆ a € 50 tax stamp
“droit de chancellerie”

12. Practical guide to settling in the Grand Duchy of Luxembourg
What to do
To import the vehicle and receive a vignette 705, the new
arrival should present himself and his vehicle at a Customs
and Excise office (the vignette 705 is a document issued
by Customs and Excise showing that the vehicle to be
Clear your vehicle registered is compliant with the tax legislation).
through customs
if it is imported The VAT system varies depending on whether the vehicle
is new or used.
The registration number is allocated on the basis of a
request with the requestor’s social security number. Once
this number has been allocated, the production of the
registration plate is authorised. A message confirming
Request the authorisation of the production of this plate with this
registration number is then sent to the approved makers of registration
number plates.
and plate
It is possible to make your request by letter sent to the snct,
from the snct
12
by telephone, fax or even by e-mail. It is also possible to
have a personalised number plate.
Your vehicle must be insured with the insurance company
of your choice provided that it is approved in Luxembourg.
Request
a Green Card
A tax stamp of € 50 must be affixed to the vehicle
transaction request form. The tax stamp can be bought
from the Customs and Excise and the three snct branches.
Buy
the tax
stamp
Once you have done this, the registration request must be
made on a vehicle transaction request form, largely filled
in using the information on the EU certificate of conformity
Request a provided by the vehicle manufacturer. The owner of the
registration vehicle should present his ID card.
card from
the snct
When moving to Luxembourg from abroad, the registration
procedure must be followed by a roadworthiness test of
the vehicle.
Roadworthiness
test

13. Practical guide to settling in the Grand Duchy of Luxembourg
Your driving licence
If you come from a country neighbouring Luxembourg, and you have taken up
residence in the Grand Duchy you must register your driving licence in the Grand
Duchy of Luxembourg. You may exchange it for a Luxembourg driving licence at any
time.
By registering their licences, people living in the Grand Duchy of Luxembourg are
warned when their licences run out. Likewise, they can quickly obtain a copy of the
licence if it is lost, stolen or damaged: in this case the National roadworthiness test
centre (snct) will provide the copy. This can only be done if the existence and data
of the foreign driving licence are known. If these data are not registered, it will have
to wait for proof from the competent foreign licensing authority of the existence and
conditions of validity of the lost or stolen licence. This will slow don the procedure for
the person wishing to get back a document which proves his right to drive as soon
as possible.
The holder of a driving licence from the European Economic Area is should, on arrival,
hand in a copy of both sides of his driving licence to the commune where he lives.
The latter will then forward this to the licensing centre of the snct for registration.
This service will inform the person concerned in writing once the registration has
been made.
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The holder of a driving licence may also go to the snct personally to register his
driving licence.
registration with the embassy of your country of origin
It is recommended that you register with the embassy of your country of origin
ÆÆ for the delivery or renewal of official documents
(passport, national identity card)
ÆÆ in the case of death, serious accident, notarial act or arrest, the consulate
or embassy can come to your aid and help with administrative formalities
ÆÆ to enrol on an electoral register in your country of origin.

14. 03
Practical guide to settling in the Grand Duchy of Luxembourg
social
security
Health insurance
There are two types of health insurance in Luxembourg: compulsory health insurance
and optional complementary health insurance.
Compulsory health insurance covers most basic medical services.
Optional complementary health insurance allows you to benefit from wider
insurance cover, in particular with regard to hospitalisation costs, outpatient treatment
or dental care.
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How to take out compulsory medical insurance
To benefit from compulsory health insurance cover, you have to be registered with
the caisse nationale de santé (Luxembourg national health fund) (cns, see opposite).
Once registered, you will receive a social security card which will identify you in your
dealings with the social security bodies in Luxembourg and the provision of benefits
(doctors, hospitals, chemists….). The benefits concern mainly medical cover, maternity,
invalidity, accidents at work, occupational disease, family credits, unemployment and
dependency insurance.
Optional complementary health insurance
Compulsory health insurance covers most medical services. However, if you want to
benefit from wider protection (hospitalisation costs, outpatient treatment or dental
care), you can take out an optional complementary health insurance.
The caisse médico-chirugicale mutualiste (medical-surgical mutal fund) (www.
cmcm.lu) offers this type of insurance.

15. Practical guide to settling in the Grand Duchy of Luxembourg
How you become affiliated depends on your status when you arrive:
ÆÆ if you are still working professionally in your country of
origin (which is an EU country), you must request an e106
form from the national health fund of your country of origin.
This form must be sent to the Luxembourg national health
fund so that you will also be covered in the Grand Duchy.
ÆÆ if you have retired from work and are a pensioner in your
country of origin (which is an EU country), you will remain
covered by the social security system in your country of origin.
To be covered in Luxembourg as well you have to request
the e121 form from the pension service in your country of
origin and send it to the Luxembourg national health fund.
ÆÆ If you have never worked, the insurance is optional.
(i) If you are covered by insurance in your country of origin
you must request the e121 form from the health service
in your country of origin and present it to the caisse
nationale de santé to be covered in the Grand Duchy.
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(ii) If you are not affiliated in your country of origin, you can
request affiliation to the caisse nationale de santé yourself.
This voluntary insurance will enable you to benefit from
the same health cover as under the compulsory scheme.
Pension insurance
If you are receiving a legal pension in your country of origin (which is an EU country),
you can ask to have it paid directly into your account in Luxembourg. All you need to
do is ask you pension office in your country of origin.
Voluntary pension insurance
If you have not yet reached pensionable age in your country of residence when you
move and you want to continue to pay contributions in Luxembourg, you can take out
a voluntary assurance pension insurance.
All requests must be made to the Joint Social Security Centre
(www.ccss.lu).

16. AMSTERDAM
08.2012
BRUssELS
GENEVA
LONDON
LUXEMBOURG
MADRID
MONACO
MUNICH
PARIS HEAD OFFICE
Boulevard Royal, 43
L-2955 LUXEMBOURG
T +352 4797 1
www.kbl.lu