A handful of new or improved benefits were made available in Luxembourg from 1 January, 2018
A handful of new or improved benefits were made available in Luxembourg from 1 January, 2018. Here are a few of them along with the the new laws that enter into force.
The number of households eligible for housing assistance is expected to increase to 35,020 this year, after the criteria for eligibility were modified.
Greater CNS coverage
Starting in 2018, the CNS now reimburses 100% of the health costs associated with care of a child under 18 (instead of 88%). The delay for replacing a prosthetic limb has been dropped from every 15 years to every 12 years. The maximum number of lymphatic drainage sessions covered by the CNS rises from 8 to 24, while surgical treatment of lipoedema at stage 3 will be reimbursed 100%. The period in which compression stockings can be reimbursed has been amended so that patients will be reimbursed for two pairs purchased together over a 12-month period, as opposed two one pair every six months.
Leave allowance increased
Luxembourg upped the number of days’ leave for fathers around the birth of a child from 2 to 10 days. Paternity leave will be paid in the same way as regular leave. They must give a notice period of two months to inform the employer of the dates and conditions for the leave. The same provisions apply for fathers adopting a child aged under 16.
Luxembourg also increased the number of paid leave days permitted in the case of a death of a minor child, from three to five.
Taxation of individuals in couple
Married individuals will be able to opt for individual taxation of their income.
Company tax benefits
Tax credits for companies have been extended to investment in software, costs related to startups, R&D and concessions, patents, licences and zero-emission passenger cars.
Individuals will be able to claim a tax rebate of €2,500 for “sustainable mobility” for the acquisition from 1 January onwards of a hybrid electric passenger car with CO2 emissions lower than 50gmCO2/km.
Cost of living allowance
Starting 1 January, 2018, the calculation for assessing low-income households for living allowance changed. Family allowances, back to school benefits and birth allowance will no longer be taken into account in the calculation for household income. The amounts issued for the cost of living allowance remain unchanged from 2017’s figures.
Extension of 10.5% tax on capital gain
Luxembourg has extended the 10.5% tax on the capital gain on property sales until 31 December, 2018.
Election date scheduled
The next legislative elections have been scheduled for 14 October 2018. Only people with Luxembourg nationality are permitted to vote in legislative elections. The last elections, in 2013, saw a seachange in the country’s political landscape as a coalition of the DP, LSAP and Greens teamed up to take power from the CSV.
Data protection general directive
New rules aimed at better protecting individuals when it comes to the handling of personal data within the EU will enter into force on 25 May 2018. The law provides for the enhancement of both legal and practical security for individual, economic operators and public authorities.