Grand Duchy of Luxembourg

Last modification: 24 jan 19
Introduction: 

Company cars are fully fiscally deductible, as is the 17% VAT tariff, with low road and registration taxes, so Luxembourg is friendly towards company cars.

Chapter 2 : Automotive market, segments & sales

Total Car park

482.001 Total Fleet of which 202.199 cars and 200.916 mixed use vehicles*, 33.015 lcv’s and 5.543 trucks (05/2018) (source: Statec.lu)

* Mixed Use Vehicles = serving for transport of persons and/or merchandise, i.e. vans, combi’s, breaks etc…

New vehicle registrations (Cars, LCV, Trucks)

52.775 cars and lcv’s (2017) (source: Statec.lu)

Top 5 brands (total market)

Top 5 brands Sales of New Passenger Cars in 2017

1. Volkswagen (6.309)
2. BMW (4.943)
3. Mercedes (4.589)
4. Audi (4.468)
5. Renault (4.053)

Source: Statec.lu

Dealer network (including fleet dealer network)

The Federation of Luxembourg Car Dealers Fegarlux counts 127 members. (www.fegarlux.lu)

 

Used car market/renewal cycle

26.600 second hand cars were sold in 2017; the average age of passenger cars in Luxembourg is 6,2 years (source: ACEA)

Chapter 4: Taxation & legislation

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Chapter 5: Car policies

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Chapter 6: Funding methods

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Chapter 7: Fuel

Fuel type segmentation

Figures as of 05/2018 (Source: Statec)

Total of 202.199 passenger cars

103.699 Petrol

95.472 Diesel

1.385 Hybrid Petrol/Electric

814 Electric

631 Other

142 Petrol + Gas

56 CNG/LNG

 

 

Fuel price evolution (€ VAT included)

 

2017

2018*

Diesel

0,987

1,047

Petrol 95 Octane

1,164

1,203

*Figures 05/2018

Source: Statistiques.public.lu

 

 

Fuel infrastructure

In 2015, Luxembourg counted 236 fuel stations.

Source: Petrol.lu

 

 

Chapter 8 : TCO components

The Total Cost of Ownership for Luxembourg fleet vehicles consists of the usual elements, with a lesser fiscal burden than in neighbouring countries

  • monthly financing
  • interest cost
  • annual road tax based upon the vehicle’s CO2-emissions (https://www.acl.lu/Mobilite/Taxe-sur-les-vehicules-routiers)
  • stamp tax upon registration (50 € of 100 € in case of personalised license plate)
  • maintenance and repairs
  • tyres
  • roadside assistance
  • insurance and all risk cover
  • fuel
  • fleet management costs
  • car parking, car wash, ...

Remarks:

· In Luxembourg, the 17% VAT tariff is fully deductible for company cars if the user of the car is VAT-taxable and the business activities for which the car is used are not exempt from VAT (without entitlement to VAT-credit)

· The fiscal deductibility of car costs is fixed at 100%.

Chapter 9: Safety, insurance and telematics

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Chapter 10: Environment

Sustainable Mobility

As a component of tax reform, a range of measures have been introduced to promote sustainable mobility in Luxembourg:

Since January 1st 2017:

  • A tax deduction for sustainable mobility on zero-emissions privately-owned cars;(bicycles, pedelec25 and cars);
  • A reassessment of company car benefits in kind based on the vehicle’s greenhouse gas emissions (in particular, CO2-emissions) and its air pollution emissions (in particular, NOx and particle emissions).

Since January 1st 2018:

  • A new tax deduction for sustainable mobility on privately-owned Plug-in Hybrid Electric Vehicles (PHEV);
  • A tax credit for zero-emission company cars, not subjected to any lease contract

These measures were introduced to promote public health and the protection of the environment, and accompany other measures that promote the use of public transportation and soft mobility. Two thirds of investments have been allocated towards the construction of public transportation infrastructure, and one third towards investments in road infrastructure.

Context and objectives

The government has opted for an incentive rather than a repressive approach:

  • Zero-emissions vehicles such as 100% electric vehicles, bicycles and pedelec25, fully benefit from the new incentive measures;
  • Low-emission vehicles such as Plug-in Hybrid Electric Vehicles benefit from less incentive measures

A tax deduction or a reassessment of benefits in kind for eco-responsible drivers is being implemented for Private cars, Company cars and Business cars

Source: http://www.developpement-durable-infrastructures.public.lu/

 

A nationwide charging network

In order to actively support the breakthrough of electric cars, the distribution network operatiors in Luxembourg decided to put in place an infrastructure of charging stations under the name “Chargy”. In 2020, the Chargy network will include 800 public charging stations for electric cars and hybrid plug-in vehicles in Luxembourg, with 2 charging points each. Nearly half of these stations will be installed at Park & Ride car parks and the remainder in public municipal car parks. Each charging station will include 2 charging points and the network will eventually offer 1.600 parking spaces reserved for electric vehiclesWhen completed, every municipality in the country will have at least one charging station.

Chapter 11: Mobility

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Chapter 12: Key trends to watch

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