Do I Need to Register for a Small Side Activity in Luxembourg?
Short answer: yes, you need to register. There is no minimum income threshold for self-employment in Luxembourg. Whether you earn 500 EUR or 50,000 EUR per year, if you regularly provide services or sell goods for money, you need a business permit (autorisation d’établissement).
| Question | Answer |
|---|---|
| Is there a minimum income to register? | No — there is no threshold |
| Do I need a business permit for a side activity? | Yes |
| What about dogwalking, tutoring, small online sales? | Yes — these are commercial activities |
| Is there a “hobby exemption”? | No — Luxembourg does not have one |
There is no “hobby exemption” in Luxembourg
Unlike some other countries, Luxembourg does not have a threshold below which your activity counts as a “hobby” and doesn’t need to be registered. If you regularly provide services or sell goods in exchange for payment, that is a business activity — and you need a business permit.
This applies to all kinds of small activities:
- Dogwalking or pet sitting
- Tutoring or coaching
- Selling handmade products online
- Freelance design or translation work
- Any service you provide regularly for money
The key word is regularly. A one-time sale of your old furniture is not a business. But if you routinely offer a service or sell products — even part-time, even for small amounts — you need to register.
What registration means in practice
Getting a business permit doesn’t mean heavy bureaucracy. For most small activities, especially those with no qualification requirement (like consulting, e-commerce, or coaching), the process is straightforward:
- Business permit — apply through MyGuichet.lu or on paper to the Ministry of Economy
- CCSS (social security) — register after you receive your permit
- VAT — if your turnover is under 50,000 EUR, you can use the VAT franchise regime (régime de franchise) (no VAT on invoices, but you also cannot deduct input VAT on your business purchases — equipment, software, rent, etc.)
But I earn very little — do I still pay social security?
This is where the only “threshold” exists. CCSS contributions have an exemption if your income is below 1/3 of the minimum wage (approximately 901 EUR/month or about 10,800 EUR/year in 2026).
If you’re below this threshold:
- You pay no CCSS contributions
- But you are also not covered against any risk under the self-employment head — no pension rights, no health coverage, no accident insurance from this activity. If you have no other coverage (e.g., from employment), you are uninsured.
- You still must register — the exemption is about contributions, not about the obligation to have a business permit
The CCSS exemption does not remove the need to register. You still need a business permit even if your income is too low for CCSS contributions.
Quick reference
| What | Threshold | Required? |
|---|---|---|
| Business permit | No minimum income | Yes — always |
| CCSS registration | No minimum income | Yes — always |
| CCSS contributions | Below ~901 EUR/month | Exemption possible |
| VAT registration | Below 50,000 EUR turnover | Exemption possible (franchise regime) |
| Municipal business tax | Below 40,000 EUR profit | Allowance applies (commercial only) |
Self-employment is a bold choice. We’re rooting for you and your business every step of the way.
💜💙 Your BravoLisa Team
This article is for general information purposes only and does not constitute professional tax, legal, or accounting advice. Every situation is different — consult a qualified professional (tax adviser, accountant, or lawyer) for advice specific to your circumstances. BravoLisa does not accept liability for decisions made based on this information.
Legilux — Loi du 2 septembre 2011 (droit d'établissement), CCSS — Assiette de cotisation et adaptation, Guichet LU — Autorisation d'établissement.
