02 Dec 2024

Extended benefit in kind rate for electric vehicles

At the Council of Ministers on 29 November, the Luxembourg government announced that the benefit in kind related to the leasing of 100% electric vehicles would be extended until the end of 2026.

Extended benefit in kind rate for electric vehicles

Currently, the benefit in kind is taxed at a flat rate of 0.5% (for consumption ≤ 18 kWh/100km) and 0.6% (for consumption > 18 kWh/100km) for electric vehicles, and at a flat rate of between 0.8% and 1.8% for internal combustion vehicles.

The benefit in kind will be maintained at a flat rate of 0.5% (for consumption ≤ 18 kWh/100km) to 0.6% (for consumption > 18 kWh/100km) for 100% electric cars until 2026. This decision is designed to encourage the ecological transition and strengthen the country’s economic attractiveness.

For other types of motorization, the benefit in kind will change as planned from January 1, 2025, to 2%.

The reasons for this extension are related to ecology and attractiveness. On one hand, the government hopes to encourage company car drivers to switch to electric vehicles, and on the other, to reinforce Luxembourg's economic attractiveness by maintening this advantage for companies and their employees.

Some examples of figures:

1 BEV - consumption ≤ 18 kWh/100 km

2 PHEV - CO2 emissions: 20 g/km (applicable for scheme B)

3 Petrol - CO2 emissions: 111 g/km (applicable for scheme B)

It is still possible to anticipate this change because an order with the signing of a lease contract before 31 December 2024 will allow the current rate to be maintained. Renewing the lease in 2024 for the entire duration of the contract will be more advantageous, even if the vehicle is delivered in 2025.

 

For more information, please consult: paperjam.lu/article/leasing-avantage-fiscal-mainte

Our electric leasing offers

We offer a wide range of electric cars for leasing at competitive commercial conditions, including government subsidies for the purchase of 100% electric vehicles.

Fully electric cars are accessible and affordable, with the majority of our core range offering autonomies of 450 to 550 km. They are also increasingly comfortable, with engine power generally superior to that of a similar combustion-powered car, and moreover immediately available, for more dynamic driving pleasure with complete peace of mind.

See our offers

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