Social security registration requirements for self-employed persons

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Self-employed persons must register with the Joint Social Security Centre (Centre commun de la sécurité sociale - CCSS).

The social protection system covers the risk of sickness, maternity, disability, death, old-age, and occupational and commuting accidents. In addition, insured persons enjoy other benefits such as family allowances and unemployment benefits.

Under certain conditions, members of a self-employed worker's family may also be eligible for health insurance coverage as co-insured persons.

Self-employed persons can voluntarily register with the Employers' Mutual Insurance Scheme (Mutualité des employeurs - MDE) through the CCSS to cover any financial costs resulting from a loss of income due to sickness.

Who is concerned?

Professions and activities concerned

The following persons must register as self-employed persons for social security insurance:

Managers of companies that engage in a commercial, trading, agricultural or intellectual activity (and have obtained a business permit to do so) are considered to be self-employed persons if they are:

Such persons may, if they wish, register with the Employers' Mutual Insurance Scheme on a voluntary basis.

Persons who work in a self-employed capacity as their main or ancillary activity are exempt from registering for social security insurance if their earned income does not exceed 1/3 of the annual minimum social wage. Such persons may nevertheless register voluntarily for social security insurance, provided they are resident in Luxembourg.

Postings abroad

Self-employed persons who typically engage in their activity in Luxembourg and who leave to carry out a similar activity in another member State of the European Union (EU) or European Economic Area (EEA) – i.e. Iceland, Liechtenstein and Norway – or in Switzerland may still be entitled to coverage under the Luxembourg social security system if they meet the following criteria:

  • the anticipated length of the posting does not exceed 24 months;
  • they must have been self-employed in Luxembourg for at least 2 months before the beginning of their posting;
  • they must maintain an infrastructure that allows them to continue their business activity immediately after the end of the posting.

Regular work in several EU and EEA countries and Switzerland

Principle

The principle that only one legislation applies, which pertains to all situations without exception, stipulates that self-employed persons who work in several member States must be registered for social security in a single country, as if they conducted all their business and received all their income in that country.

This primarily covers 2 situations:

  • working in a self-employed capacity in 2 or more member States;
  • working as an employee and in a self-employed capacity in 2 or more member States.

Working in a self-employed capacity in 2 or more member States

Persons who typically work in a self-employed capacity must register with the social security system of:

  • the member State where they reside, if they conduct at least 25% of their business in their country of residence;
  • the member State where the centre of interests of their business activities is located, if they do not conduct a substantial portion of their business in their country of residence.

Working as an employee and in a self-employed capacity in 2 or more member States

Persons who work in a self-employed capacity in a member State, while at the same time are employed as a salaried worker in Luxembourg, need to register for social security for both activities only in Luxembourg, and vice versa.

Prerequisites

Preliminary steps

Natural persons who wish to work in self-employed capacity to engage in an activity requiring a business permit must first obtain a business permit. On receiving their business permit, they must register with the CCSS.

Third-country (non-EU) nationals who wish to work as self-employed persons and to reside in Luxembourg must first apply for a residence permit for a self-employed person.

Costs

Self-employed persons are personally responsible for paying their social contributions (both the employee's and the employer's share) in proportion to their gross earned income before tax.

How to proceed

Registering as a self-employed person

Self-employed persons must register for social security by submitting a 'declaration of start of employment for self-employed persons' form to the CCSS.

If they applied for their business permit through MyGuichet.lu, they may use the pre-completed form that was automatically generated and saved in their business e-Space.

Persons treated as self-employed workersmanaging partners holding more than 25% of the company shares, or directors – must use the 'declaration of start of employment for salaried workers' form and not the 'declaration of start of employment for self-employed persons' form, even though they have self-employed status.

In addition to registering with the CCSS, non-resident self-employed persons must also register with the health insurance fund of their country of residence.

If a self-employed person is assisted in their activities by their spouse or legal partner, and if those activities may be considered the spouse's or partner's main activity, the spouse or partner must be registered as an assisting spouse/partner, unless they explicitly request to be exempted from registration. However, spouses or partners of a self-employed managing director of a company must be registered as an employee of the company in question.

Adapting the contribution base to expected income

The social security contributions of self-employed persons are provisionally determined on the basis of:

  • either the last known net taxable income;
  • or, for a newly insured person, the social minimum wage for unskilled workers.

However, if the insured person can prove that their income is different, they may, at any time, submit a request for adjustment of their taxable base to the CCSS, with a declaration of their expected income for the year in which contributions are due.

The CCSS sends out a letter every year which specifies the income that will be used for the calculation of the insured person's social security contributions. The letter also contains a reminder that the insured person can request the adjustment of their contribution base, if need be.

When the Luxembourg Inland Revenue (Administration des contributions directes - ACD) establishes the semi-net income for the financial year in question, the corresponding social security contributions are recalculated to establish the final tax statement.

Ancillary activities

If the self-employed person carries out their business activity as an ancillary activity, i.e. in addition to another main activity, the social security contributions for the ancillary activity are calculated based on 1/3 of the social minimum wage.

However, if the self-employed person declares that their earned income is less than 1/3 of the social minimum wage, they may apply for an exemption for insignificant income in order to be exempted from paying health, accident, pension and long-term care insurance contributions.

Occasional activities

If the self-employed person carries out their business activity on an occasional and irregular basis for a predetermined period of time not exceeding 3 months per year, they may apply for an exemption for occasional activity in order to be exempted from paying health and pension insurance contributions. This exemption must be applied for before the business activity is launched.

Accident insurance contributions remain mandatory.

The occasional activity must be the only business activity carried out by the self-employed person.

This exemption does not apply to occasional and regular activities (e.g., every Saturday for a period not exceeding 3 months in total per year).

Ancillary activity in the cultural or sports sector

If a person works in a self-employed capacity with a non-profit association to engage in an ancillary activity in the cultural or sports sector, they may apply to be exempted from registering for health and pension contributions. To do this, they must meet 2 criteria:

  • engage in the activity in addition to their activity as an employee; and
  • receive an income that is less than 2/3 of the annual social minimum wage (prorated over the duration of the activity).

Note: A person who is exempted from paying for coverage of a risk is not covered against the risk in question.

Voluntary registration with the Employers' Mutual Insurance Scheme

Self-employed persons and members of their family registered as an assisting family member can register voluntarily with the Employers' Mutual Insurance Scheme (MED) in order to cover any financial costs resulting from a loss of income in the event of sickness.

For self-employed persons already registered for social security, the application for registration with the Employers' Mutual Insurance Scheme must be submitted before the 1st of January of a given year, and the insurance coverage will begin from this date.

For first-time registrations, or new registrations after an interruption of at least 12 months, membership in the Mutual Insurance Scheme will become effective upon registration with the CCSS as a self-employed person.

The insured person can end the voluntary insurance at any time on written request. Coverage will automatically cease should they fail to pay their contributions twice in succession.

Coverage of co-insured persons

Dependent members of a self-employed worker's family benefit from health insurance coverage as co-insured persons, unless they are registered for social security in their own right.

The conditions governing co-registration vary depending on whether the insured person is a resident or a non-resident.

Where there are several main insured persons (e.g., a couple with children where both parents work), co-insured persons are covered by the oldest main insured person.

Online services and forms

Who to contact

Joint Social Security Centre

  • Joint Social Security Centre
    4, rue Mercier L-2144 Luxembourg Luxembourg
    L-2975 Luxembourg
    Phone: (+352) 40141-1
    08.00 - 16.00
    Email address: ccss@secu.lu
    Closed ⋅ Opens Monday at 8.00
    Friday:
    8.00 to 16.00
    Saturday:
    Closed
    Sunday:
    Closed
    Monday:
    8.00 to 16.00
    Tuesday:
    8.00 to 16.00
    Wednesday:
    8.00 to 16.00
    Thursday:
    8.00 to 16.00

    The reception desks can only be visited by appointment.

Employers' Mutual Insurance Scheme

Related procedures and links

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