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New in 2023
Several new legal and regulatory provisions applying directly to citizens will enter into force in 2023. Here is an overview of the main changes which will have a direct impact on the citizens. This list is not exhaustive.
Finance
Reduction of the VAT rate within the framework of the "Solidaritéitspak 2.0" (solidarity package).
Entry into force: 1 January 2023.
The normal, intermediate and reduced VAT rates are reduced by one percentage point until 31 December 2023. Thus, the normal VAT rate is reduced from 17% to 16%, the intermediate rate from 14% to 13% and the reduced rate from 8% to 7%.
Safety
Obligation to have smoke detectors in all homes in the Grand Duchy
Entry into force: 1 January 2023.
From 1 January 2023, the installation of smoke detectors is mandatory in all homes in the Grand Duchy.
Family
Energy subsidies
Entry into force: 1 January 2023.
The government has approved a package of measures agreed between the government and the social partners under the tripartite agreement 'Solidaritéitspak 2.0', aimed at accelerating the transition of households to renewable energies and reducing the dependence of households on fossil fuels:
- Stabilisation of electricity prices for residents with an annual consumption of less than 25,000 kW/h (01.01.2023-31.12.2023)
- Limiting the increase in natural gas prices and extending the state's coverage of network costs* (until 31.12.2023)
- Reduction in the price per litre of heating oil and the price of liquefied petroleum gas* (until 31.12.2023)
- Temporary subsidy on the sale price of pellets for households (unit 31.12.2023)
- Increase of financial aid "Klimabus wunnen" (01.01.2023-31.12.2023)
- Temporary subsidy of the selling price of electricity for users of publicly accessible charging points for electric cars (01.01.2023-31.12.2023)
- Temporary subsidy on the price of heat supply for households connected to a district heating network (until 31.12.2023)
*measure already in force since the end of 2022
Cost-of-living allowance and energy bonus for 2023
Extension to 2023
In accordance with the agreement of the Tripartite Coordination Committee of 28 September 2022, the cost-of-living allowance and the energy bonus will be extended to 2023.
Increase in old-age pensions
Entry into force: 1 January 2023.
Pensions are increased by 2.2%. This revaluation is in addition to the index brackets that also apply to pensions.
Increase of the social minimum wage (SSM), the social inclusion income (revenu d'inclusion sociale - REVIS) and of the severely disabled allowance (revenu pour personne gravement handicapés - RPHG).
Entry into force: 1 January 2023.
In accordance with the agreement of the Tripartite Coordination Committee of 28 September 2022, the SSM, REVIS and RPGH are increased by 3.2% in 2023.
Bill in progress (SSM)
Bill in progress (REVIS & RPGH)
Accessibility to all of the places open to the public
Entry into force: 1 July 2023
In an effort to ensure that places open to the public are accessible to all, a number of measures are being introduced from 1 July 2023
Employment
Teleworking for cross-border workers
Entry into force: 1 January 2023.
Cross-border commuters who live in France and work in Luxembourg may, from 1 January 2023, work 34 days outside Luxembourg without being taxed in France
Elections
Municipal and legislative elections 2023
The municipal elections in the Grand Duchy will take place on 11 June 2023.
The parliamentary elections the Grand Duchy will take place on 8 October 2023.
European Union
Croatia to join the Schengen area
Entry into force: 1 January 2023.
On 1 January 2023, Croatia joins the Schengen area, which will allow the free movement of people without internal border controls.
Companies
Administrative dissolution without liquidation of any commercial company without employees and assets
Entry into force: 1 February 2023.
Creation of a simplified procedure which aims to eliminate the numerous commercial companies under Luxembourg law which have not complied with the applicable law for several years (and which therefore meet the condition for opening a judicial liquidation), and which moreover have neither assets nor employees.
Electronic invoicing (e-facturation)
Entry into force: 18 March 2023
While large and medium-sized economic operators are already obliged to send their invoices electronically to the State in the context of public procurement and concession contracts, from 18 March 2023 all companies, regardless of their size, which perform services for public sector bodies (State, municipalities, public establishments, etc.) are affected, regardless of the amount of the invoice.
Information technology
Luxchat
Entry into force: during the year
The "Luxchat" application is an instant messaging service developed by the Luxembourg State. The particularity of this application is its security standard and the fact that the infrastructure is located in Luxembourg. Initially, a version will be available only to Luxembourg government agents. In view of the many advantages of this application in terms of security, an "open to all" version of "Luxchat" for the entire population will be introduced in a second phase.