January 1st will mark the entry into force of several changes in Luxembourg in 2024. Between salaries, state aid, housing and mobility, here are the changes.
From January 1st a big tax cut!
Excellent news for workers and pensioners in Luxembourg: MEPs voted on Wednesday 20 December the tax cut promised for 2024.
From January 1st, the tax scale will be adjusted, allowing a tax reduction of approximately 10%. First developed by the Bettel government at the spring tripartite meeting, this adaptation of the scale was improved by the new Frieden government
Of the eight indices that have declined since 2017 but are not applied to the tax scale, four will be recovered on January 1, 2024. A more advantageous adaptation than the economic tax credit came into force in July. In January the latter will disappear from the paycheck since it is replaced by this new more advantageous tax rate.
A new index expected for 2024
Statec inflation estimates forecast a new index in 2024. According to the latest calculations, in the summer, in the 3rd quarter, salaries and pensions will increase by 2.5%.
Use our calculator to estimate your next gross salary with the index.
VAT returns to normal
Reduced by one percentage point, to 16%, VAT is 17% this January 1, 2024. And 14% for the intermediate rate, 8% for the reduced rate. This will cause a slight increase in prices.
According to Finance Minister Gilles Roth, this return to normality should bring 245 million euros into state coffers in 2024.
The CO2 tax is increasing again
As announced by the Luxembourg government in its climate plan, increases the CO2 tax Still this January 1st. It will increase from 30 to 35 euros per ton of carbon. This is an increase of a few cents per liter of fuel: approximately 1.2 cents per liter of diesel, compared to 1 cent per liter of petrol. Heating fuel is also affected.
Read also – Here’s how much the carbon tax costs you in Luxembourg
A small discount with the CO2 tax credit
New aid for workers and pensioners emerged from the tripartite meeting of March 2023: the CO2 tax credit. This comes “offset the cost of the CO2 tax for lower wages” then he justified the government. It will be implemented from January 1, 2024.
According to the calculations made in the bill, the worker with the social minimum wage (3,085.11 euros gross) will receive €14 per month thanks to the CO2 tax credit.
Therefore, the quantity of this “CI-CO2” decreases. So a worker who earns 5,000 euros gross per year will only have 7 euros per month. And less than 2 euros a month for those with a gross salary of at least 6,250 euros. The CO2 tax credit is not granted above 79,999 euros per year.
Housing: Government promises to act quickly
The November 2023 coalition agreement lists several measures that will need to be taken “stimulate the housing market in the short term” in Luxembourg. Included:
- the accelerated depreciation rate for rental housing,
- the reduction of capital gains tax,
- an increase in the “Billiggen Akt” tax credit for the purchase of your main residence,
- to Bëllegen Akt for rental investments by private individuals
- owner-occupiers who take out a home loan will be able to deduct more from their annual interest when filing their tax return.
The price of electricity remains regulated in Luxembourg
Measure resulting from the spring 2023 tripartite, Electricity price control remains in 2024. The government plans to keep prices at the 2022 level until the end of 2024.
The government also plans to extend until the end of June 2024 the aid scheme for companies particularly affected by the increase in energy prices caused by Russia’s aggression against Ukraine.
The meal voucher increases to €15
From 1 January 2024, the value of the meal voucher can reach €15 in Luxembourg, compared to 10.80 euros in 2023. An increase acquired without changing the amount paid by employees. Those who use it in Luxembourg will still continue to pay 2.80 euros.
The great news is that the meal voucher, 2024 version, can be used more widely to purchase food from merchants – and no longer just your own “meal” – and will be usable after work, during the weekend and even during holidays. vacation. no longer just at lunchtime.
Finally the paper meal voucher becomes electronic. It takes the form of a credit card or appears directly on the mobile screen. It is more practical for everyone: the employee, the owner and the restaurateur or trader, when he collects.
Teleworking: finally equality among all cross-border workers
From January 1st, German border workers will (finally) be on equal terms with the Belgians and French. Thanks to the latest agreements signed between the two countries, they spend 19 to 34 days teleworking per year without tax implications.
Taking into account the European Framework Agreement which entered into force on 1 July 2023, cross-border workers will therefore have two thresholds to respect:
- that of 34 days from the taxation of their income
- that of 49% of their annual working hours to remain affiliated with the Luxembourg social security
Hidden double taxation: extension for French border workers
THE hidden double taxation of cross-border workers who have incomes in France and Luxembourg has been suspended again for the year 2023. Enough to allow them to escape a significant increase in taxes during the declaration which they will complete in the spring of 2024. But this correction is temporary and their situation is not clearly resolved for income for the year 2024.
Extension of the tram to the National Stadium
THE tram line it will be completed in the southern part in 2024. According to Luxtram, the last five stops up to the Stade de Luxembourg will be put into service later in the year. This includes these five tram stations in this Bonnevoie-Cloche d’Or section:
- Scylla
- Howald Station (exchange hub)
- Vauban High School
- Wassertuerm
- Stadion (exchange hub)
In its northern part towards Findel
Most expensive train pass for French border commuters
From January 1st “the price of TER Fluo subscriptions will increase by 3%” informed the SNCF. An increase which therefore worries French border workers, given that they always pay for the French part of their journey.
However, the price increase will only concern the railway portion of season tickets that combine train and public transport. For the latter, urban areas decide on any price increase.
Electric car: the premium changes in 2024
Notable change in the country’s mobility policy: after 31 December 2023 (deadline for their first entry into circulation), hybrid cars will no longer be able to benefit from the bonus for the purchase of an electric car.
The premium will remain 8,000 euros for 100% electric cars. Et “Subsidies for the purchase of an electric car and other zero-emission technologies will be maintained” promises the government in its coalition agreement. In this case they have been extended until the end of June 2024.
Read also – Electric car: can cross-border commuters get this 8,000 euro Luxembourg bonus?
Holidays: in France the toll will increase
On the way to vacationmany Luxembourgers will have to pay a the bill increased in 2024. The annual increase in French motorway tolls will be “less than 3%” in 2024, assured Transport Minister Clément Beaune. It will be applied from February 1st.
Less risk for the license of French border workers
From 1 January 2024, road users in France will no longer lose points on their license if they exceed 5 km per hour. “Small” speeding, less than 5 km/h, will only be punished with a fine. from January 2024. But the flat-rate fine remains between 68 and 135 euros (depending on the location of the offence).
The reduction of one license point applies only for speeding between 5 km/h and 20 km/h.
A new law for sports leaves
MPs voted in 2023 to better regulate sports leave. From January 1st the law comes into force and examines more explicitly who can benefit from it and under what circumstances.
Read also – Public holidays, long weekends… When to go to Luxembourg in 2024
Multicultural program: the law changes
The intercultural coexistence program replaces the current reception and integration contract and the assisted integration path, systems proposed by the Ministry of the Family for facilitate integration through courses and workshops in particular. “So, it doesn’t matter if you are a refugee, a newcomer, a long-term foreign resident, a cross-border worker or a Luxembourger, everyone can participate equally in all programs, activities and projects” explains minister Max Hahn.
The law also creates a Higher Council for Intercultural Coexistence which participates in the realization of intercultural coexistence.
A facility for homeless elderly people
In its coalition agreement, the new Frieden-Bettel government aims to see a facility for the elderly homeless that can welcome its first residents in January 2024.
Sustainable finance: an update to 2024
Champion of sustainable finance, of which it claims initiative and leadership, Luxembourg promises to update its national strategy in 2024.
2023-12-31 19:19:38
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