Self-employment, freelance and remote work in Luxembourg
As we mentioned in the introduction, in the world of entrepreneurship there are many terms to designate different working modes and it is possible to get confused without having a clear understanding of the concepts. So before we look at how to operate under these different modalities, let's see what are the main differences between all these work modes.
Self-employment
A self-employed person is a professional who works on his or her own account, being self-employed implies operating one's own business or professional activity. Freelancers are responsible for managing their work, income and taxes, plus they have the power to decide exactly what projects they work on, determine when and with whom they work, and dictate their own personal style of work. Some common examples of freelancers are lawyers, doctors, consultants, traders or actors.
When operating as self-employed in Luxembourg it is not necessary to acquire any special status as is often the case in some neighboring countries, there is no official “self-employed” status. This means that there is no separate legal entity and there is no distinction between the personal property of the self-employed and the property used by the self-employed for professional purposes.
So far so simple, however, things start to get complicated if a self-employed person works through a company. For example, a person who operates through a SARL without employees where the only manager is the owner himself. Some people might consider it as a self-employed person who has adopted a more formal structure (SARL) to manage his business benefiting from tax advantages or liability protection. While others might consider him as an entrepreneur or rather a micro-entrepreneur since he is at the head of a legally constituted company. The distinction at this point depends rather on context and personal appreciation.
Freelance
Freelancers are a subset of freelancers, they are people who work on numerous short-term projects and whose work is generally done for several clients on a contractual basis. Freelancers are individuals who collaborate with individuals or companies on an ad hoc basis and one thing that distinguishes them is that although they have independence they are more limited to the terms defined by client contracts.
As a general rule, freelance workers are mainly located in technology and information sectors such as web designers, journalists, programmers, consultants, content writers, photographers, or community managers.
Remote work
When talking about remote work in Luxembourg, it must be taken into account that this way of working can be carried out in a wide range of situations. It is possible to talk about remote work being self-employed, a freelancer or even a salaried worker. Below we have some examples of people who can work remotely in different modalities:
Self-employed workers:
- Financial or tax consultants who provide ongoing advice to individuals or businesses on taxes, investments or financial strategies.
- Legal or legal advisors who provide legal guidance to businesses or individuals, on topics such as contracts, international regulations or regulatory compliance.
- Executive coaches or mentors who remotely assist professionals and executives with professional development, leadership or business strategies.
Freelancers:
- Graphic designers who create logos, visual identities or promotional materials for various clients on an ad hoc basis.
- Web developers who design custom websites for small businesses or individuals in projects that are limited in duration and deliverables.
- Translators of documents, websites or books for agencies or individual clients.
Salaried:
- Data analysts may work remotely analyzing large volumes of data to identify trends and provide insights for decision-making.
- Cybersecurity specialists can work remotely monitoring and protecting a company's systems from cyber threats.
- Technical support engineers can work remotely providing technical assistance to customers or employees, and resolving hardware or software issues through calls, chats or remote platforms.
How to become a freelancer in Luxembourg
Since freelancers are a subcategory of self-employed workers, the requirements to work as a freelancer in Luxembourg are the same as those for self-employed workers. Below we will see then what is the procedure to work as an independent worker or as a freelancer in Luxembourg.
Obtaining an establishment authorization if necessary
The first step in becoming a self-employed or a freelancer in Luxembourg is to determine whether it is necessary to obtain an establishment permit and, if so, to take the administrative steps to obtain one.
An establishment permit must be applied for by those wishing to engage in a commercial activity, craft activity or certain liberal professions of a predominantly intellectual nature. Commercial activities include the purchase and sale of goods or services for profit such as retail stores, e-commerce and travel agencies. Craft activities involve manual or technical work requiring specific skills such as carpentry, plumbing, baking or hairdressing. Liberal activities, on the other hand, are intellectual or knowledge-based professions such as doctors, lawyers, architects or consultants.
It should also be noted that some activities do not follow this rule and do not require an establishment permit:
- Salaried representatives of self-employed commercial agents.
- Lawyers, doctors, dentists, veterinarians or company auditors.
- People who sell their own products such as handicraft manufacturers.
- Community companies providing services on an occasional and temporary basis in Luxembourg.
- Those who carry out journalistic activities or books that are not self-published.
If you are not sure whether or not an activity requires an establishment permit in Luxembourg, it is best to consult the full list of activities requiring an establishment permit available on Guichet.lu.
To obtain an establishment permit it is necessary to apply online through the MyGuichet.lu portal or send an application by post to the Ministry of Economy.
Registering the activity
If the activity to be carried out on a self-employed basis is a commercial activity, the independent entrepreneur must register in the Trade and Companies Register (RCS). This procedure must be done online using a LuxTrust certificate. To complete the procedure successfully it is necessary to have the following documents:
- The application form generated by the system duly completed.
- The establishment authorization.
- The marriage certificate or family book.
- The marriage contract.
- An identity document.
Register with the Social Security for self-employed persons.
Self-employed persons in Luxembourg must register themselves with the Centre Commun de la Sécurité Sociale (CCSS) and pay contributions according to their situation. This department is responsible for the management of the social security system in Luxembourg, including health insurance, pension insurance and other social benefits.
To register with the CCSS as a self-employed entrepreneur, it is necessary to send a declaration of self-employment to the CCSS. However, if you had to apply for an establishment authorization and you did it through MyGuichet.lu, you can also register with the CCSS on MyGuichet.lu using the pre-filled form that is automatically generated in the professional space.
Obtaining a TVA number
This step is not always compulsory as self-employed people whose annual turnover excluding taxes during a calendar year has not exceeded 35,000 euros benefit from a VAT exemption. However, determining whether or not a VAT number is needed is not so simple as there are some cases in which it will be necessary even if it is below this limit depending on the operations carried out or to be carried out by the company. Moreover, although it is not necessary to apply VAT in some cases it is advisable, for example if you plan to offer a B2B product or service, it is advisable to apply VAT regardless of the expected turnover.
To register as a VAT taxpayer, it is necessary to file an initial declaration or an option declaration with the Registration Duties, Estates and VAT Authority (AED). This procedure can be completed online at MyGuichet.lu.
How to work remotely?
If working from home is your thing, you should consider that the requirements to operate in this way and the modalities to find this type of work will vary depending on whether you want to work independently or as a salaried employee. Let's explore these two avenues.
Remote work in Luxembourg as a self-employed or a freelance.
To work remotely either as a self-employed or as a freelance, it will first be necessary to perform the steps mentioned in the previous section to be able to practice in all legality. Then it will be necessary to find job opportunities and multiple alternatives exist for this purpose:
- Specialized platforms: a person who wishes to work as a freelancer or freelance in Luxembourg can find remote work through specialized platforms such as Upwork, Freelancer or Fiverr, where you can create a detailed profile that highlights your skills, experience and previous projects. These platforms connect professionals with clients around the world and allow you to search for specific opportunities.
- Social networks: another option is to establish a professional presence on networks such as LinkedIn or Instagram, actively participating in interest groups and sharing relevant content to attract potential clients. Building a solid network of contacts and staying visible is key to generating opportunities.
- Website and advertising: it is also possible to create your own website that functions as an online portfolio, showcasing your work, services offered and contact details. However, marketing strategies are necessary to attract potential customers to this site, these strategies may include organic traffic strategies such as SEO or social media posts or paid strategies such as advertisements in different media and social networks.
- Forums and virtual communities: participating in forums and virtual communities related to the professional area can allow a self-employed or a freelancer to meet potential clients and stay updated on opportunities and trends.
Working remotely on a salaried basis
It is also possible to work remotely as a salaried employee, in this case it will obviously be necessary to be able to work in an area where remote work is a viable option since not all jobs can be performed remotely. The next step will be to find a company that is willing to hire you under this modality. Below we will examine some tips for finding remote work in Luxembourg.
Use search platforms:
The best place to research the job market is the Internet, there are many job portals with thousands of job ads. In these portals you can filter the offers according to the sector in which you want to work, the level of studies or the required work experience. Within all the existing portals, some have offers at the international or European level and others are local providing offers only or mostly in Luxembourg.
- International portals: eures.europa.eu (the European Union's portal), eurojobs.com, eurojobsites.com, experteer.com, indeed.com, page.com and LinkedIn.com
Some of the job offers mention if it is possible to work remotely or in a hybrid way, if it is not specified it is possible to apply and ask later during the recruitment process, however, to be on the safe side and be sure that the job is suitable for telecommuting there are also sites specialized in remote job offers such as remoteok.com or workingnomads.com.
Creating a good resume
Regardless of how you apply, one of the indispensable elements to finding remote work in Luxembourg is to create a good resume. The purpose of the resume is to highlight the applicant's value in front of any selection committee, in this sense, the CV becomes the applicant's cover letter and the most important document in any recruitment process. The resume should be easy to read and contain a clear statement of why you are qualified for the position you are applying for and highlight your ability to work remotely and independently.
Create an appropriate cover letter
Your cover letter should enable you to stand out from the crowd at the first selection stage, so it is important to write a letter that fits the profile of the position you are applying for and, of course, make sure you make no spelling or grammatical errors. You should explain how your skills match the requirements of the position and allow the recruiters to get a first impression of you as a professional and as a person. It is an opportunity to demonstrate how the company can benefit from your knowledge and enthusiasm.
Now, since we are talking about finding a remote job, there are two possibilities at this point, one is that the offer clearly specifies that it is a remote position and a second is that the offer does not specify it but that this type of position is clearly suitable for this mode of work.
For a specifically remote position, the cover letter should highlight key telecommuting skills such as autonomy, time management and effective communication. It is crucial to mention previous experience in remote environments or projects that required virtual collaboration, emphasizing how successful results were achieved. In addition, enthusiasm should be expressed for the advantages of remote work, such as flexibility and the ability to contribute from any location.
Conversely, if the position does not specify remote but it is feasible to work remotely, the letter should focus on demonstrating in-depth knowledge of the role and mention how responsibilities can be effectively fulfilled remotely. A brief mention of preferring a remote format can also be included, noting that this would improve productivity and facilitate collaboration through digital tools. It is important to keep the tone positive and approach remote work as a mutual benefit.
