Beneficiaries of the aid

Pre-financing is reserved for any natural person who becomes the owner of a new passenger car or van.

Dealerships

Dealerships that are registered as authorised intermediaries can submit, on behalf of customers who are natural persons, applications for pre-financing of the subsidy for the purchase of an electric vehicle.

The intermediary is an authorised company on the register kept and managed by the Environment Agency (Administration de l’environnement).

An authorised company is a company that has a business permit for services related to the sale of vehicles, or an equivalent authorisation in another Member State.

Vehicles concerned

The pre-financing procedure is valid for new passenger cars and new vans that are:

• pure electric motor vehicles; or
• hydrogen fuel cell motor vehicles.

Pre-financing applies when the sales agreement is signed on or after 1 January 2027.

To be eligible for pre-financing, the vehicle must fulfil the following criteria:

• the sales agreement must be signed on or after 1 January 2027;
• the vehicle must be new;
• the vehicle must be registered in Luxembourg in the beneficiary's name no later than 12 months after the date the vehicle first enters into service. This deadline is extended to 24 months when the first and only previous owner of the vehicle was an authorised company;
• the vehicle must not have been previously registered abroad.

Amount of aid

The aid amount is determined based on the category of vehicle and its technical specifications.

In cases where the cap applies, the aid cannot exceed 50% of the cost of the vehicle excluding VAT.

In connection with pre-financing, the aid amount is deducted directly from the final sale price inclusive of taxes and is passed on to the beneficiary by the authorised intermediary.

Processing the application

The Environment Agency processes the pre-financing application.

Within 15 working days of the application being submitted, the Minister makes a decision and notifies the authorised intermediary via their MyGuichet.lu business eSpace.

If no notification is received from the Minister within that time, the application is deemed to have been approved.

Payment of the aid

The aid that has been granted will be paid within 15 working days of the award date.

As part of the pre-financing procedure, the aid is paid to the authorised intermediary, which passes it on to the beneficiary in the form of a reduction on the final sale price inclusive of tax.

Checks and reimbursement

The Environment Agency can, at any time and up to 10 years after notification of the award decision, check the accuracy of the information provided as part of the pre-financing application.

It can also check that registered authorised companies continue to meet the conditions stipulated by law.

It can ask the beneficiary or the authorised intermediary for any documentation that may be required to check compliance with the award conditions.

The requested documents must be provided within one year of the application notification. Otherwise, the Minister shall withdraw the aid granted.

In connection with pre-financing, the aid must be repaid if the vehicle is sold or exported before the end of the 36-month period following its registration in the beneficiary's name.

Suspension and removal from the register

The Minister may impose a 3- to 6-month register-listing suspension for any authorised intermediary who has repeatedly made false or incomplete declarations or failed to send the information required.

Registration automatically expires on the expiry date of the business permit.

The Minister shall permanently remove from the register:

• any business whose business permit has been revoked or cancelled;
• any business that has been declared bankrupt;
• any business that has knowingly made a false or incomplete declaration or failed to communicate the information required, with a view to receiving payment of an unwarranted amount.

In such cases, pre-financing applications submitted before the removal decision are automatically rejected.

Procedures