Sponsored content by ING • Brand Voice •Expat Corner• 19.11.2020
Photo: ING Luxembourg
To encourage private citizens to opt for electromobility, the Luxembourg government recently decided to strengthen the bonus system for electric vehicles and bikes and introduce a financial support scheme to purchase and install private electric vehicle charging stations. But how does it work? Which conditions do you have to meet to receive these bonuses?
Electric or hybrid vehicle
The subsidy is offered to all owners or holders of a vehicle registered in Luxembourg, regardless of whether they are (legal persons established under private law, natural persons, residents or non-residents). It covers vehicles put on the road for the first time between 1 January 2019 and 31 December 2021 and not previously registered abroad. You may benefit from this financial aid, provided that you signed the sale contract (or the leasing contract) before 31 March 2021 and registered the vehicle under your name for at least seven months.
In the case of a leasing contract, you may be granted the financial aid under three conditions. You are the holder indicated on the registration certificate or identified on the leasing contract. The owner of the vehicle renounces the subsidy. The vehicle is registered in Luxembourg.
The subsidywill vary depending on the category of the vehicle and its purchase date. You will receive € 8,000 for a new 100% electric or hydrogen fuel car or van. You can also get up to € 1,000 in refunds on the purchase of an electric quad, motorcycle, light motorcycle (125 cm3) and moped (scooter or pedelec 45). The refund is 50% of the cost excluding VAT, but not exceeding € 1,000. For these two types of vehicles – 100% electric vehicle or light electric vehicle -, the premium amounts respectively to € 5,000 and € 500 if the sale contract (or the leasing contract) was signed before 11 March 2020.
If you buy (or rent) an electric plug-in car or van with CO2emissions of 50 g/km or less, you are eligible for a € 2,500 bonus. For plug-in vehicles registered from 1 September 2020, only the CO2emissions determined during the WLTP test cycle are considered.
You can also request a subsidy for a new electric bike or pedelec 25 (a pedal-assisted bike with a power output no more than 0.25 kW) purchased between 1 January 2019 and 31 March 2021. The bonus issued is calculated at 50% of the bicycle’s cost, minus VAT, but no more than € 600. If you purchased your vehicle between 1 January 2019 and 10 May 2020, you only benefit from a subsidy of 35% of its cost excluding VAT, but not exceeding € 300.
To be eligible for this scheme, you must be resident in Luxembourg and use the bike or pedelec 25 for your needs. You can only apply once for this aid within five years. However, there are no restrictions about the place of purchase of the bicycle or pedelec 25. It can be purchased in Luxembourg, abroad or on the internet.
Private electric vehicle charging station
You can apply for this financial aid if you meet the following conditions. You are a natural person and own or rent the parking space where the charging station will be installed. The charging station must be new with a maximum charging power of 11 kW, located in Luxembourg, purchased between 1 July 2020 and 30 June 2023 and installed by a professional electrician. The aid is only granted for one charging station per parking space and for one parking space if you own or rent several parking spaces attached to the same building.
The grant amounts vary depending on the number of locations attached to a building and the charging installation’s intelligence. For a building with up to three parking spaces, the aid is capped at € 750 for a basic station and 1,200 for a smart station. For a building with 4 or more parking spaces, the aid is capped at € 1,200 for a smart station and € 1,650 for a station managed by a shared smart-charge-management system. The eligible installation costs cover the charging station, technical equipment and labour force.
You may combine all the subsidies described above. Applications for obtaining them can be downloaded from the websites www.guichet.lu and www.clever-primes.lu and must be sent to the Environment Agency (Administration de l’Environnement). The application forms are only available in French.
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 Under conditions defined by EU law, the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) is used to measure fuel consumption and CO2 emissions of traditional and hybrid vehicles, as well as their pollutant emissions. In Luxembourg, this new laboratory test is applied to all vehicles put on the road for the first time from 1 March 2020. The old lab test NEDC (New European Driving Cycle) will continue to be applied for all vehicles put on the road for the first time before 1 March 2020.