Articles on: Taxes

Volunteer Indemnities in Luxembourg: Tax and Permit Rules

If you do volunteer work (bénévolat / Ehrenamt) for a non-profit (ASBL) in Luxembourg, the indemnity you receive is tax-free up to €5,000 per year — and below that amount, you don't even have to declare it. No business permit, no CCSS registration. Above €5,000, you declare it and deduct either a flat €5,000 expense allowance or your actual expenses (whichever is higher). For small paid side activities outside an ASBL, a much smaller €500/year threshold applies. Once your activity becomes regular and profit-oriented, you cross into a professional activity — which means you need a business permit (autorisation d'établissement / Niederlassungsgenehmigung) and must register with the CCSS.

Situation	Income tax?	Business permit?	CCSS registration?
Volunteer for an ASBL, indemnity up to €5,000/year	No	No	No
Volunteer for an ASBL, indemnity above €5,000/year	Yes, on the amount above €5,000	No (still volunteer)	Usually no, if below accessory thresholds
Occasional paid work outside an ASBL, up to €500/year	No	No	No
Occasional paid work outside an ASBL, above €500/year	Yes	Depends on regularity	Depends on amount
Regular paid activity with intent to profit	Yes	Yes	Yes

The €5,000 rule comes from Circulaire L.I.R. n° 91/2 (11 June 2012) of the Administration des contributions directes (ACD). It is still in force.

The €5,000 volunteer indemnity rule

If you help a non-profit (ASBL) — teaching, coaching, running an event, sitting on a board — and the organisation pays you an indemnity for your volunteer work, that income is tax-free up to €5,000 per tax year.

How the rule works:

Up to €5,000/year — full exemption of receipts. You are dispensed from declaring this income at all.
Above €5,000/year — you must declare the full amount. You then deduct either a lump-sum expense allowance (forfait) of €5,000 or your actual expenses (with proof) — whichever is higher. Only the net amount above the deduction is taxable.
The rule applies to four categories of activity: cultural, sports, social (e.g., volunteer rescue workers), and indemnities paid by non-profit associations to their officers (president, secretary, newsletter editor).
The activity must be accessory — exercised alongside a main activity such as a job, business, or pension.

The €5,000 threshold is a personal annual limit. If you receive indemnities from several ASBLs in the same year, you add them together — not €5,000 per organisation. Two ASBLs paying you €3,000 each means €6,000 total, above the threshold.

ASBL only. The €5,000 exemption applies when a non-profit pays you. A commercial (for-profit) school, club, or company that pays you for the same kind of work is not paying a volunteer indemnity — it's either a salary (if you have an employment contract) or self-employed income (if you invoice them). Different rules apply.

The €500 occasional income rule

If you earn a small amount of money from a one-off or occasional activity outside an ASBL — for example, a single paid workshop, a one-time translation, occasional tutoring directly for a family — it falls under "miscellaneous income" (revenus nets divers, art. 99 LIR).

Up to €500/year — not taxable, no declaration needed.
Above €500/year — the full amount becomes taxable income and must be declared.

This is a much lower ceiling than the ASBL volunteer rule. The €500 threshold is meant for genuinely occasional income — not a recurring side activity.

Practical tip: If you're earning small amounts regularly (even if each payment is small), the tax office may consider it a professional activity rather than occasional income. Frequency and intent matter.

When does it become a "professional activity"?

Luxembourg law distinguishes between occasional help and professional self-employment. You cross into professional territory when your activity shows:

Regularity — repeated, ongoing work rather than a one-off
Intent to profit — you're trying to earn a living or build a client base
Organisation — premises, advertising, business name, regular clients
Scale — income exceeding the small thresholds above

Once your activity is professional, you need to:

Apply for a business permit (autorisation d'établissement / Niederlassungsgenehmigung) through MyGuichet LU
Register with the CCSS for social security
Register with the VAT authority (AED) if your turnover exceeds the threshold (currently €50,000/year for the SME VAT exemption)
Declare your income through the annual tax return (Form 100)

For more on the 4 criteria and how to apply, see our article on the 4 criteria for a business permit.

CCSS: when do you need to register?

Even if your income is taxable, you don't always need to pay CCSS contributions. Luxembourg has specific exemptions for accessory activities (activités accessoires) — work done alongside a main job or pension.

Exemption path	Condition
Cultural or sports activity for an ASBL	Annual income from the activity below 2/3 of the social minimum wage (requires a full-time main salaried job)
Income-based exemption (other accessory self-employment)	Annual income from the activity below 1/3 of the social minimum wage
Duration-based exemption (other accessory self-employment)	Activity exercised occasionally and not habitually for a foreseeable duration of less than 3 months per calendar year

The income-based and duration-based exemptions are alternatives — you qualify if you meet either one. Exact amounts change with the social minimum wage — check the current figure on ccss.public.lu. The exemption is granted on request to the CCSS, not automatic.

If you are already employed full-time, your main job already covers you for CCSS. An accessory activity below the thresholds above is typically exempt from additional contributions.

Worked examples

Example 1: Saturday-school language teacher

Maria teaches Romanian at a Saturday heritage-language school run by an ASBL. She is paid €80 per session, about 30 sessions per year = €2,400/year.

The ASBL pays her as a volunteer indemnity.
€2,400 is below €5,000 → no income tax, no declaration.
No business permit needed — she is a volunteer, not a professional.
No CCSS registration.

If her total went above €5,000 (e.g., she added a second ASBL and earned €4,000 there too = €6,400), she would declare the full amount and deduct €5,000, paying tax on €1,400.

If the same school were a commercial language school, none of this would apply. The school would pay her either as an employee (PAYE) or she would need to invoice them as self-employed — with a business permit and CCSS.

Example 2: Weekend sports coach

David coaches youth football for a local sports ASBL on Saturdays. The club pays him €300/month for 10 months = €3,000/year.

Volunteer indemnity through an ASBL.
Below €5,000 → no tax, no permit, no CCSS.
Even if the amount grew to €6,000, he would still not need a business permit. He would declare €6,000, deduct €5,000, pay tax on €1,000. CCSS exemption for sports activities through an ASBL applies below 2/3 of the social minimum wage.

Example 3: Occasional paid tutor (not through an ASBL)

Sophie helps two neighbours' children with maths homework. The parents pay her directly — no ASBL involved. Total over the year: €400.

This is occasional income outside an ASBL.
Below €500 → no tax, no declaration.
No business permit needed for a genuinely occasional, private arrangement.

If Sophie advertises her tutoring, takes on more families, and earns €3,000/year in a recurring way, she has become a professional tutor. She needs a business permit (liberal profession) and must register with the CCSS. The €500 threshold no longer protects her.

Example 4: Board member of an ASBL

Paul sits on the board of a cultural ASBL and receives an indemnité of €200 per meeting, about 8 meetings per year = €1,600/year.

Indemnity from a non-profit, well below €5,000 → no tax, no declaration, no permit, no CCSS.

Not the same as a commercial company director! For commercial (for-profit) companies, directors' fees are called "jetons de présence" or "tantièmes" and are taxed differently — a 20% withholding under article 91 LIR, no €5,000 exemption. The €5,000 rule only applies to indemnities from non-profits (ASBLs).

Quick reference

Question	Answer
What's the tax-free limit for volunteer work in Luxembourg?	€5,000/year, if paid by an ASBL (non-profit)
Does the €5,000 apply if I volunteer for a commercial school or company?	No. The exemption only applies to non-profits (ASBL)
What about small paid work outside an ASBL?	Up to €500/year is tax-free (occasional income)
Do I need a business permit to volunteer?	No — volunteering is not a professional activity
When do I need a business permit?	When your paid activity is regular, organised, and aimed at profit
Do I need to register with the CCSS as a volunteer?	No, as long as you stay under the accessory activity thresholds
Is the €5,000 per ASBL or total?	Total across all ASBLs combined
What law sets the €5,000 rule?	Circulaire L.I.R. n° 91/2 du 11 juin 2012 (ACD)

Luxembourg is better because people like you choose to build, create, and serve. Bravo.
🙌💜 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.

Last updated: April 2026. Rates and thresholds may change — always verify with the relevant authorities for the most current figures.

Updated on: 17/04/2026

Was this article helpful?

Thank you!