Establishing or working
A firm from the European area in a liberal profession subject to a permit is exempt from notification. A craft firm must notify. A firm established outside that area needs a business permit, even for one-off work.
The costliest error: concluding from an exemption from notification that there are no obligations. The European framework harmonises principles, not procedures.
- Establishing or working occasionally
- The three variables
- Who must notify and who is exempt
- When work becomes establishment
| Situation | Regime | Authority |
|---|---|---|
| Occasional work | Freedom to provide services | Prior notification |
| Posting of workers | Posting rules | Labour inspectorate |
| Establishment in Luxembourg | Business permit | Competent ministry |
The business permit
It rests on three cumulative conditions: integrity, qualification where the activity requires it, and real establishment with a fixed place of business. A single missing condition defeats the application.
The structural point: the permit is issued to the firm but held by an individual. The departure of the manager carrying the qualification calls for a fresh application, which makes it a critical dependency to anticipate.
Posting workers
This is the most universal obligation in the guide. It applies whatever the origin, whatever the profession, whatever the duration.
The declaration must be made at the latest as work begins, and there is no period for regularisation afterwards. It also presupposes two territorial anchors: a contact person present on the ground, and a Luxembourg address where documents are kept.
Insurance and liability
Liability and insurance are not the same thing. An uninsured firm remains fully liable, and a firm insured at home may be liable in Luxembourg on a basis its policy does not cover.
If the home policy does not cover the entirety of the statutory and contractual liability incurred in Luxembourg, it must be adapted or specific cover taken out. Covering Luxembourg geographically is not enough.
Ongoing obligations
Preliminary steps are not enough. Part of the obligations runs throughout the work, and a declaration accurate at the start but since become false no longer protects.
On penalties, one idea to keep: the fine is not the costliest penalty. A stop-work order halts the project, at a cost far exceeding the fine and not insurable.
The five rules to remember
Check insurance and mandatory rules before pricing, these carrying costs that cannot be passed on afterwards.
Start qualification recognition on appointment, it is the longest item on the timeline.
Declare the posting before the first day of work, no later regularisation existing.
Verify your subcontractor's formalities, that verification being capable of proof from the first day.
Update declarations on every change, an out-of-date declaration no longer protecting.
A warning about the client
The risk does not stop at the posting firm. A client contracting with a foreign provider is subject to its own duties to verify, and disregarding them exposes it to the fine. This guide therefore concerns Luxembourg clients as much as foreign firms.
What this guide does not cover
Three subjects belong to other guides. The cost of the project, covered in the guide on construction costs. The building permit, covered in the corresponding guide. Housing tax and specifying works, covered in the guides on housing VAT and on specification.
This guide reflects the rules at the date of checking and serves professional orientation. It does not replace consultation of the competent administrations.