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New in 2024
Several new legal and regulatory provisions applying directly to citizens will enter into force in 2024. Here is an overview of the main changes which will have a direct impact on the citizens. This list is not exhaustive.
Justice
Legal aid
Entry into force: 1 February 2024
From 1 February 2024, the law of 7 August 2023 on the organisation of legal assistance will come into force and will allow litigants whose financial resources are limited within the meaning of the aforementioned law to benefit from partial legal assistance. This means that legal costs and fees resulting from legal proceedings for which they are entitled to partial legal assistance will be covered by the State to the extent of 50% or 25% respectively. Recovery from parents of the costs and legal fees paid by the State in connection with legal assistance for their minor child will also cease.
Information technology
Electronic wallet (eWallet)
Entry into force: in the course of 2024
As soon as the legislation comes into force in 2024, citizens will be able to use an electronic wallet (eWallet) to save official documents and share them securely and reliably on their smartphone. These documents in digital form will have the same evidential value as paper formats. They will therefore also be valid in the event of a police check.
As soon as it is launched, the eWallet will contain a certificate of the holder's identity card. The list of documents that can be stored on a smartphone using this method is set to grow in the future.
Sports
Sporting leave
Entry into force: 1 January 2024
From 1 January 2024, the circle of potential beneficiaries of sporting leave will be widened in order to promote voluntary work and commitment within clubs and federations and to facilitate sports preparation for competitions.
Environment
Financial aid
Entry into force: 1 January 2024 to end of June 2024
The Government Council has decided to initiate the procedures for renewing the aid scheme to promote sustainability, the rational use of energy and renewable energies in the field of housing (''Klimabonus Wunnen'') and mobility (''Klimabonus Mobilitéit'').
Advertising
Entry into force: 1 January 2024
With the exception of the free press, the deposit and distribution of printed commercial advertising in letterboxes will be prohibited from 1 January 2024, unless the recipient gives his or her express consent.
Agriculture
Entry into force: 1 January 2024
From 1 January 2024, the sale to the general public of certain herbicides, insecticides, slug pellets and fungicides will be prohibited.
Labour/Finance
Teleworking for German cross-border workers
Entry into force: 1 January 2024
On 6 July 2023, the Grand Duchy of Luxembourg and the Federal Republic of Germany signed an amendment to the double taxation treaty between the two countries.
The amendment modifies the tolerance threshold provided for in the tax treaty, increasing the number of days of teleworking and business travel authorised for workers resident in one of the two States and employed by a company located in the other State from 19 to 34 days.
A comparable scheme will be introduced for public sector employees. Both schemes will apply from 2024.
Finance
Adjustment of the income tax scale to include four index-linked brackets
Entry into force: 1 January 2024
The tax relief is in line with the Agreement between the Government, the Union des Entreprises Luxembourgeoises and the trade unions LCGB, CGFP and OGBL following the meeting of the Tripartite Coordination Committee on 3 March 2023, which had already provided for an adjustment of the scale by 2.5 index brackets, to which 1.5 additional brackets have now been added.
From 1 January 2024, the tax brackets will be adjusted by 10.38% compared with the rate applicable since 2017.
For a taxpayer in tax class 1 with a gross annual salary of 75,000 euro, this means a net annual gain of 1,095 euros in 2024. Taking into account the reduction in the tax burden resulting from the introduction of the economic tax credit (crédit d'impôt conjoncture - CIC) in 2023, the annual gain is still 567 euros.
For a couple with an annual gross income of 125,000 euros (of which the first person's salary represents 2/3 and the second 1/3), the effect in relation to 2023 amounts to 2,189 euros in 2024. Their tax burden will therefore fall by 10.9%. Taking into account the CIC applicable in 2023, the effect amounts to 1,333 euros.
A taxpayer in tax class 1a with a gross annual salary of 50,000 euros will have an extra 1,160 euros in 2024 as a result of the adjustment. This corresponds to a reduction in the tax burden of 19.8%. Taking into account the CIC, the effect amounts to 709 euros.
Economy/Energy
Extension of energy subsidies until 31 December 2024
To mitigate the exceptional increase in energy prices, the government extended all energy subsidies until 31 December 2024 in the tripartite agreement of 7 March 2023:
Stabilisation of electricity prices for households
The government subsidy aimed at stabilising electricity prices for residential customers, on average, at their 2022 level, has been extended until 31 December 2024 for all residential customers with an annual consumption of less than 25,000 kWh.
Similarly, prices for publicly accessible electric vehicle charging points will be stabilised in 2024, as they were in 2023.
Temporary gas price subsidy
The increase in natural gas prices for residential customers remains limited to +15% compared to the average natural gas price in September 2022.
The State will also continue to cover network costs until the end of December 2024.
Temporary subsidy on the sale price of liquefied petroleum gas for households
The selling price of liquefied natural gas continues to be reduced by €0.20/kg.
Temporary subsidy on the sale price of heating oil
The temporary reduction in the price of heating oil of 15 cents/litre (incl. tax) has also been extended until 31 December 2024.
Temporary subsidy on the sale price of wood pellets for households
The reduction in the sale price of wood pellets used for domestic heating has also been extended: up to 35% of the price, with a maximum of €200 per tonne.
Temporary subsidy on the price of heat supply for households connected to a district heating network
Residential customers connected to a district heating network will continue to benefit from a price increase limited to +15% compared with the average price level in September 2022 until 31 December 2024.
Please visit www.subvention-gaz.lu for more information.
Extension of energy subsidies until the end of June 2024
Extension of the aid scheme for businesses particularly affected by the rise in energy prices caused by Russia's aggression against Ukraine
The period during which businesses can obtain aid to cover part of their additional energy costs, under certain provisions of the amended law of 15 July 2022 aimed at introducing an aid scheme for businesses particularly affected by the rise in energy prices caused by Russia's aggression against Ukraine, will be extended by six months - until the end of June 2024. These changes still need to be approved by the European Commission before they can be implemented.
Renewal of the aid scheme to promote sustainability, the rational use of energy and renewable energies in the field of housing and mobility
The Government Council has decided to initiate the procedures for extending the aid scheme to promote sustainability, the rational use of energy and renewable energies in housing ("Klimabonus Wunnen") and mobility ("Klimabonus Mobilitéit"), from 1 January 2024 until the end of June 2024.