Work in Israel for a company based in Luxembourg

Can I work remotely for a company in Luxembourg while being in Israel?

It is usually doable, but we recommand to check the following key points first:

  1. You must be a resident of Israel
  2. The company must be a resident of Luxembourg
  3. The company must have a valid business registration in Luxembourg

I have a question regarding the work permit in Luxembourg. My girlfriend and I are both EU citizens and we are living in Israel. She is a French citizen and I am an Israeli citizen. We are both looking to move to Luxembourg to work. We have already been in Luxembourg for 2 weeks and we have been doing some job hunting. We are looking for a company that would be willing to sponsor us.
Is this doable?
You can work in Luxembourg with a work permit.
In order to get a work permit in Luxembourg, you need to be a resident of the country. This means that you have to be a citizen of Luxembourg and that you have to be living in Luxembourg for at least 6 months.
If you are an EU citizen, you are considered a resident of the EU, so you are eligible for a work permit.
If you are an EU citizen, you are also eligible for a residence permit. This is a document that you need to apply for in order to be considered as a resident of the country.
If you are not an EU citizen, you are not eligible for a residence permit. You can apply for a work permit, but you need to be a resident of Luxembourg.

How to live in Israel and find remote work in Luxembourg?

Finding remote work in Luxembourg if you are located in Israel might be difficult, therefore we recommend to move to Luxembourg.

Luxembourg is a small country in the heart of Europe, with a population of less than half a million people. It is located in the European Union and the Eurozone, and is the second smallest country in the EU after Andorra.
It is a country of the European Union, the Eurozone, and the Schengen Area.

How a company in Luxembourg can send my salary in Israel?

When working remotely for a corporation in Luxembourg, you salary can be send to Israel but you will not be able to claim the income tax.

How to get paid in Israel?
If you work for a corporation in Luxembourg, you can get paid in Israel. The corporation will deduct the Israeli tax from the salary, and send it to you. You will then be able to claim the income tax as your own.
However, if you work for a corporation in Luxembourg, you will not be able to claim the Israeli tax.

Why is it so?
The reason is that the Israeli tax is not a tax on the income, but on the person. If you are a corporation in Luxembourg, you are a person, and therefore you are liable to pay the Israeli tax.
If you are a corporation in Luxembourg, and you are a corporation in Israel, you are not a person in Israel, and therefore you are not liable to pay the Israeli tax.
This is why you will not be able to claim the Israeli tax, even though you are working in Israel.
The only way to be able to claim the Israeli tax is to work for a corporation in Israel.
If you are working for a corporation in Israel, you will be able to get paid in Israel.

Where to pay my taxes when working remotely in Israel for a company in Luxembourg?

If you are working remotely in Israel for a corporation established in Luxembourg, taxes could seem complicated but in fact , they are not.

As a matter of fact, if you are working remotely in Israel for a company established in Luxembourg, you can be considered as a resident of Israel and therefore, you are not liable for taxes.
This article will explain you how to calculate your taxes, when you work remotely in Israel for a company in Luxembourg.
If you are working remotely in Israel for a corporation established in Luxembourg, you can be considered as a resident of Israel and therefore, you are not liable for taxes.
You should be aware that the tax rules for foreign workers are different than those for local workers.
As a matter of fact, if you are working remotely in Israel for a corporation established in Luxembourg, you can be considered as a resident of Israel and therefore, you are not liable for taxes.
In order to be considered as a resident of Israel, you must have lived in Israel for at least 183 days in the previous 12 months.
If you are a foreign worker who has been working remotely in Israel for a company established in Luxembourg, you should be aware that you are not liable for taxes.