Luxembourg rolls out new electric subsidies

On Friday, the government announced the tax allowance for electric and hybrid cars would be replaced with a subsidy scheme Shutterstock

On Friday, the government announced the tax allowance for electric and hybrid cars would be replaced with a subsidy scheme Shutterstock

People buying electric or hybrid plug-in vehicles in Luxembourg can have even more benefits after the government introduced new incentives for the start of the Autofestival.

On Friday, the government announced the tax allowance would be replaced with a subsidy scheme, offering €5,000 refunds on the purchase of 100% electric cars and €2,500 for electric plug-in hybrids with CO2 emissions of 50g/kg or less.

People can also get up to €500 in refund on the purchase of an electric quad, motorcycle, light motorcycle (125 cm3) or moped (and pedelec 45). The actual refund is 25% of the cost excluding VAT of the vehicle, but not exceeding €500. The stand-on electric scooter is not included in the scheme.

Meanwhile, people buying hydrogen fuel cell cars and vans are also eligible for the €5,000 bonus.

The scheme forms part of the government’s strategy to decarbonise transport and promote electromobility.

The incentives are offered to people who own and register an eligible vehicle in Luxembourg. It covers vehicles which enter service from 1 January 2019 to 31 December 2019 and have not been registered abroad. Owners may apply after owning the vehicle for seven months.

In the case of a rental or leasing contract, financial assistance may be granted to the keeper of the vehicle entered on the registration certificate or identified on the rental or leasing contract, provided that the owner of the vehicle renounces the assistance in question and that the vehicle is registered in Luxembourg.

People can apply for the subsidy via the environment department using a form which has yet to be made available.

Electric bicycles

A subsidy of up to €300 will be offered on the purchase of a new electric bike or pedelec25 (pedal-assisted bike with a power output of no more than 0.25kW) purchased in 2019.

The bonus issued is calculated at 25% of the cost of the bicycle or pedelec25, minus VAT, but no more than €300.

People must be resident in Luxembourg, aged 18 or over and use the bike or pedelec25 for their own personal needs to be eligible for this scheme. People can only apply once for this aid within a period of five years.

More information on all schemes will be published on the site