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European Alternative Fuels Observatory

Luxembourg

Incentives and Legislation

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 EUR 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 the purchase 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 EUR 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 EUR  3 000) and FCEV cars and light-duty vehicles In addition, a purchase subsidy of up to EUR 1 000 for electric motorcycles and quadricycles (max. 50 % of the purchase price). For BEVs purchased between April 2021 and April 2022, application for subsidy is available immediately after purchase.

Are you aware of further incentives you want to bring to the Observatory's attention? Let us know by filling in this form.

Incentives and Legislation

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.