Focus on recent tax measures proposed by the government

The Luxembourg government filed three new bills in the week of 10 October 2022 concerning:the 2023 budget, housing supply reform, a temporary reduction of the VAT rates in the 2023financial year 

At a glance:2023 budget – no major reforms

Clarification of the reverse hybrid rulesDeadline for filing tax returns extended to 31 DecemberIncreased flexibility for the “profit-sharing bonus” regimeMinimum salary for eligibility for the inpatriate regime reducedClarification of, and new exclusion in, the so-called Luxembourg “RELIBI Law”Tax credit for individuals (single parents and minimum wage earners)Real estate measuresVAT measures for energy transitionHousing supply reform – existing tax revised and two new taxes levied to tackle real estate speculation

The revised real estate taxThe new unbuilt land taxThe new unoccupied residential real estate taxTemporary vat rate cuts – 1% reduction of certain VAT rates during the 2023 financial year 2023 budgetThe Luxembourg government has filed the bill for the 2023 budget (the “Budget Bill”). As expected, the Budget Bill contains no major tax reforms due to the current economic situation. The proposed tax measures only comprise certain tax reductions and clarifications. 

Read more