Here you will find specific and fiscal information related to vehicles.
Luxembourg reforms taxation of company cars
Scheme B
On January 1, 2023, the new regulation (Regulation B) for calculating the fringe benefit came into force. It includes new CO2 emission thresholds for combustion/hybrid vehicles and a double category for 100% electric vehicles according to their consumption.
In which cases?
- Vehicles ordered as of 01/01/2022 and registered in 2022.
- Vehicles ordered on or after 01/01/2022 and registered between 01/01/2023 and 31/12/2024.
- Vehicles ordered before 31/12/2024 and registered before 31/12/2025.
From 2025, the imputed income will be taxed at a flat rate of 1% to 1.2% depending on consumption for 100% electric cars and 2% for other types of internal combustion engines.
For more information, you can view the official details directly.
Adaptations from October 1. 2024
The amounts of aid will be staggered as follows for vehicles ordered from October 1, 2024:
- A grant of 6,000 euros for:
100% electric cars, provided their electrical energy consumption does not exceed 160 Wh/km (equivalent to 16 kWh/100 km),
100% electric cars with seven or more seats, provided that the applicant is part of a household of at least five people, to take account of the needs of large families,
100% electric vans and hydrogen fuel cell cars.
- A bonus of 3,000 euros for 100% electric cars, when their electrical energy consumption is between 161 Wh/km and 180 Wh/km. The latter threshold is raised to 200 Wh/km, provided that the maximum net power of the car's propulsion system is less than or equal to 150 kilowatts.
- Other electric cars, i.e. those whose electrical energy consumption exceeds 200 Wh/km (or 180 Wh/km when their power exceeds 150 kilowatts), will no longer be covered by the financial aid scheme.
Please find the details of the grants as well as the conditions for their use on the website of the Luxembourg government:
Extension: electrified vehicles
This extension applies to vehicles ordered no later than 30 September 2024 and first put into circulation before 31 March 2025, to take account of delivery times.
For vehicles not subject to compulsory registration (bicycles and pedelecs25), the extension applies to vehicles purchased no later than 30 September 2024.
Please find the details of the grants as well as the conditions for their use on the website of the Luxembourg government:
New measures for subsidies for electrified vehicles
The "Klimabonus Mobilitéit" scheme is the government's key element in decarbonizing private mobility. It not only promotes pure electric and hydrogen fuel cell motor vehicles as well as bicycles and pedal-assist bicycles, but also the installation of private charging stations for electric vehicles.
Since its introduction in 2020, the scheme has already awarded more than 3,500 grants for private charging stations, contributing to the decarbonization of the transport sector.
On August 4, 2023, the Grand-Ducal Regulation of July 29, 2023, amending the Grand-Ducal Regulation of August 19, 2020, establishing financial support for the installation of private charging stations for electric vehicles, was published in the Official Gazette. This amendment to the regulatory framework has the following objectives:
- Extend the aid scheme until December 31, 2024;
- Facilitate the installation of charging stations in owner communities;
- Expanding the scope of beneficiaries of the aid;
- Introducing the possibility of granting the aid through a leasing company.
Extension of the grant scheme until December 31, 2024
The grant scheme was extended by 18 months until December 31, 2024. It is now aligned with the deadline for initial registration of financially assisted 100% electric vehicles.
Please find the details of the grants as well as the conditions for their use on the website of the Luxembourg government:
New measures for subsidies for electrified vehicles
On 9 March 2022, the Government Council adopted a draft Grand-Ducal regulation extending the "Clever fueren" financial aid scheme for a further 24 months until 31 March 2024, under the following conditions:
100% electric vehicles (BEV)
- All 100% electric vehicles with a fuel consumption of less than 18 kWh/100 km, or less than 20 kWh/100 km with a maximum net power of the propulsion system of less than 150 KW, are subsidised by the State through a premium of €8,000.
- All 100% electric vehicles, with a fuel consumption above 18kWh/100km, are subsidised by the State through a premium of 3.000€.
- All vehicles must be ordered before 31 March 2022 and registered by 31 December 2022 at the latest in order to benefit from the state subsidy.
Plug-In-Hybrid cars (PHEV)
The incentives for Plug-In-Hybrid Vehicles (PHEV) are discontinued, but the period allowed for the entry into service of vehicles eligible for an incentive (only for orders placed in 2021 and whose initial delivery was scheduled for 2021) is extended until 30 September 2022.
100% electric vans (BEV)
All 100% electric vans, regardless of their consumption, are subsidised by the State through a bonus of €8,000.
Hydrogen vehicles
Are subsidised by the State through a premium of €8,000.
These new provisions will apply to vehicles ordered between 1 April 2022 and 31 March 2024 and which are first put into circulation before the end of 2024. The minimum holding period of the vehicle and the leasing contract is 12 months.
Please find the details of the subsidies as well as the conditions of application on the website of the Luxembourg government:
Aides financières pour la promotion de la mobilité électrique et de la mobilité active: régime "Clever fueren" prolongé jusqu'au 31 mars 2024 - gouvernement.lu // Le gouvernement luxembourgeois