Cross-border labor and regulation in Benelux and France

Cross-border labor trends in Belgium, France, and Luxembourg continue to be shaped by migration and complex regulatory frameworks. Data shows over 85,500 Belgians work in neighboring countries, with 48,601 working in Luxembourg. In Belgium, the foreign workforce has reached nearly 52,000, with French citizens making up approximately 77 percent of this group, particularly in the Walloon regions of Namur and Hainaut.

Tax risks remain a critical issue in the France-Luxembourg corridor due to teleworking limits. A tax treaty stipulates a 34-day annual limit for remote work; exceeding this threshold to the 35th day can cause an entire year’s worth of remote work to become taxable in France rather than Luxembourg. This creates significant discrepancies for employees on standard two-day-per-week teleworking agreements, which can total roughly 96 days annually.

As of August 17, 2026, Belgium has implemented new administrative procedures via royal decree. The process for EU citizens has been simplified, removing the need for specific municipal registration. However, third-country nationals residing in neighboring countries (such as Germany, France, Luxembourg, or the Netherlands) must now obtain an ‘Annex 64’ (or ‘bijlage 64’) document through a Belgian municipality to prove cross-border employment, though this does not grant residency rights.

Additionally, non-residents face varying banking hurdles in Belgium. While some institutions like KBC allow account requests without Belgian nationality or a local address, others, such as BNP Paribas Fortis and Belfius, maintain more restrictive criteria, requiring strict identity verification and proof of professional activity to comply with anti-money laundering regulations.