2023-12-31 16:15:14
January 1 will mark the entry into force of several changes in Luxembourg in 2024. Between salaries, state aid, housing and mobility, here are the changes.
A big tax cut from January 1st!
Very good news for workers and retirees in Luxembourg: deputies voted this Wednesday, December 20 the tax cut promised for 2024.
From January 1st, the tax scale will be adapted, allowing a tax reduction of around 10%. First developed by the Bettel government during the tripartite meeting in the spring, this adaptation of the scale was improved by the new Frieden government
Of the eight indexes that have fallen since 2017 but not applied to the tax scale, four will be caught up on January 1, 2024. A more advantageous adaptation than the economic tax credit entered into force in July. In January, the latter will disappear from your pay slip since it is replaced by this new, more advantageous tax scale.
Find out in this article how much you will save each month.
A new index planned for 2024
Statec inflation estimates predict a new index in 2024. According to the latest calculations, salaries and pensions will increase by 2.5% in the summer, during the 3rd quarter.
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 price increase.
According to Finance Minister Gilles Roth, this return to normal should bring 245 million euros to the state coffers in 2024.
The CO2 tax increases again
As announced by the Luxembourg government in its climate plan, the CO2 tax increases again this January 1st. It will increase from €30 to €35 per tonne of carbon. That is an increase of a few cents on each liter of fuel: around 1.2 cents per liter of diesel, compared to 1 cent per liter of gasoline. Heating fuel is also affected.
Also read – Here’s how much the carbon tax costs you in Luxembourg
A small rebate with the CO2 tax credit
The tripartite of March 2023 resulted in new aid for workers and retirees: the CO2 tax credit. This one comes “compensate the cost of the CO2 tax for the lowest salaries” then justified the government. It will be implemented from January 1, 2024.
According to the calculations carried out for the bill, a worker with the minimum social wage (€3,085.11 gross) will receive 14€ per month thanks to the CO2 tax credit.
Then, the amount of this “CI-CO2” is decreasing. Thus, a worker earning €5,000 gross per year will only have €7 per month. And less than €2 per month for those whose salary is at least €6,250 gross. The CO2 tax credit is not granted above €79,999 per year.
Housing: the government promises to act quickly
The November 2023 coalition agreement lists several measures that will need to be “stimulate the housing construction market in the short term” in Luxembourg. Including:
- the accelerated depreciation rate for housing intended for rental,
- the reduction in capital gains tax,
- an increase in the tax credit “Billiggen Akt” for the purchase of your principal residence,
- a Bëllegen Akt for rental investment by individuals
- owner-occupiers taking out a property loan will be able to deduct more from their annual interest when making their tax return.
The price of electricity remains regulated in Luxembourg
Measure resulting from the spring 2023 tripartite, the control of the price of electricity remains in 2024. The government plans to maintain prices at the level of 2022 until the end of 2024.
The government also plans to extend the aid scheme for companies particularly affected by the rise in energy prices caused by Russia’s aggression against Ukraine until the end of June 2024.
The meal voucher increases to 15€
From January 1, 2024, the value of the meal voucher can reach €15 in Luxembourg, compared to €10.80 in 2023. An increase acquired without the share paid by employees changing. Those who benefit from it in Luxembourg will still continue to pay €2.80.
The big new features are that the meal voucher, version 2024, can be used more widely to buy food from merchants – and no longer just your “meal” – and will be usable after work, during the weekend and even during holidays. , and 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 cell phone screen. It’s more practical for everyone: the employee, the boss and the restaurateur or merchant, when cashing out.
Teleworking: finally equality between all cross-border workers
From January 1, German cross-border workers will (finally) be on an equal footing with the Belgians and the French. Thanks to the latest agreements signed between the two countries, they spend from 19 to 34 days of teleworking per year without tax implications.
Taking into account the European framework agreement which entered into force on July 1, 2023, cross-border workers will therefore have two thresholds to respect:
- that of 34 days by the taxation of their income
- that of 49% of their annual working time to remain affiliated to Luxembourg social security
Hidden double taxation: reprieve for French cross-border workers
The hidden double taxation of cross-border workers who have income in France and Luxembourg has been once again suspended for the year 2023. Enough to allow them toescape a major tax increase during the declaration that they will complete in spring 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 will be completed on its southern part in 2024. According to Luxtram, the last five stops up to the Stade de Luxembourg will be put into service during the year. This includes these five tram stations on this Bonnevoie-Cloche d’Or section:
- Scyllas
- Howald station (exchange pole)
- Lycée Vauban
- Wassertuerm
- Stadion (exchange hub)
On its northern part towards Findel
A more expensive train subscription for French cross-border workers
As of January 1, “the price of TER Fluo subscriptions will increase by 3%” informed the SNCF. An increase which therefore concerns French cross-border workers, since they always pay for the French part of their journeys.
The price increase will, however, only affect the rail portion of subscriptions that combine trains and public transport. For the latter, it is the urban areas which decide on a possible price increase.
Electric car: the premium changes in 2024
Notable change in the country’s mobility policy: after December 31, 2023 (deadline for their first entry into circulation), hybrid cars will no longer be eligible for the bonus for the purchase of an electric car.
The premium will remain €8,000 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.
Also read – Electric car: can cross-border commuters obtain this Luxembourg bonus of €8,000?
Holidays: the toll price will increase in France
On the road to vacationmany Luxembourgers will have to pay a bill increased in 2024. The annual increase in French motorway tolls will be “less than 3%” in 2024, assured the Minister for Transport Clément Beaune. It will be applied from February 1.
Fewer risks for the driving license of French cross-border workers
Road users will no longer lose license points for speeding below 5 km/hour from January 1, 2024 in France. “Small” speeding violations, less than 5 km/h, will only be punished by a fine. from January 2024. But the fixed fine of between 68 and 135 euros (depending on the location of the offense) is maintained.
The reduction of one license point will only apply for speeding between 5 km/h and 20 km/h.
A new law for sports leave
MPs voted in 2023 to better regulate sports leave. From January 1, the law comes into force and more explicitly reviews who can benefit from it and in what circumstances.
Also read – Public holidays, long weekends… When to take your leave in Luxembourg in 2024
Multicultural program: the law is changing
The intercultural living together program replaces the current reception and integration contract and the supported integration path, systems proposed by the Ministry of the Family for facilitate integration through courses and workshops in particular. “So, it doesn’t matter whether you are a refugee, a new arrival, 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 living together which participates in the implementation of intercultural living together.
A structure for the elderly homeless
In its coalition agreement, the new Frieden-Bettel government aims to see a structure for aging homeless people welcome its first residents in January 2024.
Sustainable finance: an update in 2024
Champion of sustainable finance, for which it claims initiative and leadership, Luxembourg promises to update its national strategy in 2024.
1704042791
#RTL #Infos #Salary #housing #mobility #Luxembourg