The incentives and legislations section are being updated now. An up-to-date version for all countries are expected until 26th April 2024.

Incentives and legislation that aim to increase uptake of alternative fuels vehicles and infrastructure.

If you know of other national or local incentives that should be included in this section, please send us an email and let us know.

Ownership tax benefits

Tax reduction - CO2 based tax. Minimum tax of 30€ for BEV M1 vehicles. 

Company tax benefits

The deductibility from corporate income of expenses related to the use of company cars is calculated on the basis of CO2 emissions. This measure encourages to buy vehicles with zero or low emissions as a company car. From 2025 onwards only BEV and FCEV will be eligible for company tax benefits.

Purchase subsidies

Purchase subsidy of 8.000€ for BEV (only for models with less than 7 seats that have an electricity consumption of less than 18 kWh per 100 kilometres, over that threshold, the subsidy is reduced to 3.000€) and FCEV cars and light-duty vehicles In addition, a purchase subsidy of up to 1.000€ for electric motorcycles and quadricycles (max. 50% of the purchase price). This is extented untill March 2024.

Registration Tax Benefits

BEV's have only 50% of administative tax

Interesting links

https://www.clever-fueren.lu

https://www.acea.auto/files/Electric_cars-Tax_benefits__purchase_incentives_2023.pdf

https://delano.lu/article/e-car-subsidy-extended-until-m

Announced policy changes (effective later in 2024 and after)

By 2030, the government wants to increase the percentage of new Evs registered to 49 percentage points.

Institutions involved in Incentives

• Ministry of the Environment, Climate and Sustainable Development
• Ministry of Mobility and Public Works