Luxembourg extends subsidies to accelerate electric vehicle adoption

The Luxembourg government extended a series of financial incentives to help citizens transition to electric vehicles and improve energy efficiency.

The government prolonged a subsidy program for 100% electric vehicles until June 2030. It also extended grants for installing charging stations in private homes and apartment buildings. By the end of 2025, the national Chargy network will include nearly 1,000 charging points, including 86 ultra-fast stations.

Starting in January 2027, car dealers can deduct purchase subsidies directly from the price of an electric vehicle. The government set these bonuses at 6,000 euros for high-efficiency cars, 3,000 euros for less efficient models, and 1,500 euros for used electric vehicles at least three years old. These measures also apply to installing solar panels, heat pumps, and energy renovation works.

Despite these measures, electric and plug-in hybrid cars represented only 12.5% of the Luxembourg fleet at the end of 2025. The government is allocating up to 94 million euros for purchase bonuses and 13 million euros for individual charging points to meet its goal of having 49% of the fleet be electric by 2030.