No, Luxembourg is not tax-free. Residents are required to pay taxes on their overall global earnings, while non-residents are only required to pay taxes on income earned in Luxembourg. The country maintains three segregated tax classes based on an individual’s status.
Class 1: Single persons
Class 1a: Single people with children and single taxpayers aged 65, dated January 1 of every tax year.
Class 2: Married persons and civil partners (Under specific conditions)