Live in Luxembourg while having a job in UAE

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

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

  1. If the company is a local one, you must be a local one as well.
  2. If you are not a resident in the country, you will need a residence permit.
  3. You must have an EU passport.
  4. You will need a work permit, which is not always easy to obtain.
  5. You will need to check if you need to be sponsored by a local company.
  6. You will need to check if you can work from home.

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

Finding remote work in UAE if you are located in Luxembourg might be difficult, therefore we recommend you to apply for a visa to live and work in UAE. The process of applying for a visa to live and work in UAE can be quite tricky, so we have created this article to help you with the process.

What is the process of applying for a visa to live and work in UAE?
There are two ways to apply for a visa to live and work in UAE:

  1. Direct application to the UAE embassy in your home country.

  2. Direct application to the UAE embassy in Luxembourg.
    The process of applying for a visa to live and work in UAE is quite straightforward. However, if you are not aware of the process, you can get stuck in the middle of it.

  3. Find an employer who is willing to sponsor your visa
    The first step to apply for a visa to live and work in UAE is finding an employer who is willing to sponsor your visa.
    If you are lucky, you might be able to find an employer who is willing to sponsor your visa.

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

When working remotely for a corporation in UAE, you salary can be send to Luxembourg but the trick is to make sure you are working from a tax free location.

Why Luxembourg?
Luxembourg is a tax haven and has very low taxes. As a result, many companies are choosing to send their employees to Luxembourg to avoid taxes.
When a company chooses to send their employees to Luxembourg, they are not required to pay any taxes on their salaries.
However, they are required to pay tax on all other business related income.
For example, if a company sells a product to a Luxembourg based company, they will be required to pay tax on the profit.
If a company receives money from a Luxembourg based company, they will be required to pay tax on the income.

What is the difference between the two?
When a company is required to pay tax on business related income, they can choose to either pay the tax in Luxembourg or in the country where the business was created.
This is known as a double tax treaty.
If a company wants to avoid paying taxes in Luxembourg, they can choose to work from a country that does not have a double tax treaty with Luxembourg.
This is known as a tax free country.
When a company chooses to work from a tax free country, they can avoid paying taxes on their salary.
However, they will not be able to avoid paying taxes on business related income.

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

If you are working remotely in Luxembourg for a corporation established in UAE, taxes could seem complicated but in fact , you can do your taxes in Luxembourg.

How to pay my taxes when working remotely in Luxembourg for a company in UAE?
The tax system in Luxembourg is a bit different from the tax system in UAE.
You need to know your tax situation in Luxembourg to know if you need to pay taxes in Luxembourg.
You can pay your taxes in Luxembourg if you are working remotely in Luxembourg for a company established in UAE.
When you are working remotely in Luxembourg for a company established in UAE, you are considered to be a non-resident.
As a non-resident, you are not liable for tax in UAE.