In order to encourage private citizens to opt for electromobility and active mobility, thereby rendering transport cleaner in the long run, a subsidy is now available for the purchase of a new vehicle (car, van, quad) which must:

• be pure electric; or
• have a hydrogen fuel cell; or
• be a self-propelled plug-in hybrid electric vehicle (including vans) with CO₂ emissions of 50 g/km or less.

Who is concerned

All owners or holders of a vehicle registered in Luxembourg, regardless of whether they are:

• natural persons;
• legal persons established under private law;
• residents or non-residents.

In case of a rental or leasing contract, the subsidy can be paid to the holder of the vehicle indicated on the registration certificate or on the contract, provided that:

• the owner of the vehicle waives the subsidy;
• the vehicle is registered in Luxembourg.

Non-residents can apply for this aid:

• within the framework of a leasing contract, as the main holder of the vehicle. In that case, the owner of the vehicle as indicated on the registration certificate is the leasing company which has to be headquartered in Luxembourg;
• with regard to the time frame: the applicant can have moved, and therefore not be a resident any more, between the date of first registration and that of the application for financial aid.

Prerequisites

The subsidy is granted for vehicles which have never been registered abroad and which are brought into service in Luxembourg for the first time:

• between 1 January 2019 and 31 December 2024 inclusive (for pure electric or hydrogen fuel cell vehicles); or
  
• between 1 January 2019 and 31 December 2021 inclusive (for plug-in hybrid electric vehicles). This period is extended to 31 December 2022 when the vehicle meets all of the following conditions:
  • the conclusion of the sales contract or, in the case of leasing, the rental or leasing contract for the vehicle is no later than 30 September 2021;
  • the original delivery date of the vehicle, as stated in the sales contract or, in the case of leasing, in the vehicle rental or leasing contract, is no later than 31 December 2021.

Deadlines

Applicants can submit their application for the subsidy:

• at the earliest 7 months after the date of the vehicle registration in the applicant's name. For vehicles where the date of conclusion of the sales contract or, in the case of leasing, of the rental or leasing contract of the vehicle is after 31 March 2022, the application must be submitted no earlier than 12 months after the date on which the vehicle was registered in the name of the applicant for financial assistance; and
• at the latest 2 years after the first entry into service of the vehicle.

The 7/12 month period mentioned above does not apply when the applicant for financial aid is a natural person who owns the vehicle.

For rental vehicles without driver, the applicant can submit the application for the subsidy:

• at the earliest 12 months after the date of the vehicle registration in the applicant's name; and
• at the latest 2 years after the first entry into service of the vehicle.

How to proceed

Applying for the subsidy

In order to benefit from the sustainable mobility subsidy, the applicant must send the application form to the Environment Agency.

Supporting documents

Applicants must enclose the following with their application:

• the registration certificate indicating the type of vehicle;
• the vehicle's certificate of conformity (COC);
• for legal persons with respect to 100 % electric vehicles and plug-in hybrid electric vehicles: a copy of a document issued by the electricity supplier proving that the applicant has subscribed to a contract for the supply of green electricity from 100 % renewable sources;
• a copy of the rental or leasing contract identifying the car via its vehicle identification number (only if the application is submitted by the holder of the vehicle, or if the application is for a leased or rented vehicle);
• for quadricycles, motorcycles, light motorcycles and mopeds, a receipted invoice indicating:
  • the invoice number and date;
  • the name and surname of the applicant;
  • the type of vehicle;
  • the purchase price excluding VAT;
• a copy of the contract of sale of the vehicle if:
  • the date of signature of the sales contract is between 11 May 2020 and 31 March 2024 inclusive;
  • the vehicle is brought into service for the first time between 1 April 2021 and 31 December 2024 inclusive.

Amount of the subsidy

The subsidy is granted by the Ministry of the Environment, Climate and Sustainable Development.

Financial aid varies according to the date of conclusion of the sales contract (or, where applicable, the rental/leasing contract) and the date the vehicle was put into service.

Pure electric or hydrogen fuel cell vehicle

If the vehicle was first put into service between 1 January 2019 and 10 May 2020 inclusive, the amount of the financial aid is:

• EUR 5,000 for passenger cars and vans;
• up to EUR 500 for the following 100 % electric vehicles:
  • quadricycles;
  • motorcycles;
  • light motorcycles (125 cm³);
  • mopeds (scooter or pedelec45).

In the case of mopeds however, the aid is limited to 25 % of the purchase price excluding VAT and cannot exceed EUR 500.

If the vehicle is first put into service between 11 May 2020 and 31 December 2022 inclusive and the date of signature of the sales contract, or, in the case of leasing, of the rental or leasing contract of the vehicle is between 11 May 2020 and 31 March 2021 inclusive, the amount of the financial aid is:

• EUR 8,000, without exceeding 50 % of the purchase price excluding VAT, for passenger cars and vans;
• up to EUR 1,000 for the following 100 % electric vehicles:
  • quadricycles;
  • motorcycles;
  • light motorcycles (125 cm³);
  • mopeds (scooter or pedelec45).

In the case of mopeds however, the aid is limited to 50 % of the purchase price excluding VAT and cannot exceed EUR 1,000.

If the vehicle is first put into service at the latest on 31 December 2024 inclusive and the date of signature of the sales contract, or, in the case of leasing, of the rental or leasing contract of the vehicle is between 1 April 2021 and 31 March 2022 inclusive:

• the amount of the subsidy for a pure electric vehicle is:
  • EUR 8,000, without exceeding 50 % of the purchase price excluding VAT, for passenger cars with an electrical energy consumption not exceeding 180 Wh/km;
  • EUR 8,000, without exceeding 50 % of the purchase price excluding VAT, for passenger cars with an electrical energy consumption exceeding 180 Wh/km, provided that:
    • the vehicle has at least 7 seats, including the driver's seat; and
    • the applicant for financial aid (i.e. the owner of the vehicle or, in the case of a rental or leasing contract, the holder of the vehicle registered on the vehicle registration certificate or identified on the rental or leasing contract) is a natural person who is part of a household of at least 5 persons;
  • EUR 3,000, without exceeding 50 % of the purchase price excluding VAT, for passenger cars that do not meet the criteria described in the previous point;
  • EUR 8,000, without exceeding 50 % of the purchase price excluding VAT, for vans.

If the vehicle is first put into service at the latest on 31 December 2024 inclusive and the date of signature of the sales contract, or, in the case of leasing, of the rental or leasing contract of the vehicle is between 1 April 2022 and 31 March 2024 inclusive:

• the amount of the subsidy for a pure electric vehicle is:
  • EUR 8,000, without exceeding 50 % of the purchase price excluding VAT, for passenger cars with an electrical energy consumption not exceeding 180 Wh/km;
  • EUR 8,000, but not more than 50% of the purchase price excluding VAT, for passenger cars with an electrical energy consumption not exceeding 200 Wh/km and a maximum net power of its propulsion system not exceeding 150 kilowatt;
  • EUR 8,000, without exceeding 50 % of the purchase price excluding VAT, for passenger cars with an electrical energy consumption exceeding 180 Wh/km, provided that:
    • the vehicle has at least 7 seats, including the driver's seat; and
    • the applicant for financial aid (i.e. the owner of the vehicle or, in the case of a rental or leasing contract, the holder of the vehicle registered on the vehicle registration certificate or identified on the rental or leasing contract) is a natural person who is part of a household of at least 5 persons;
  • EUR 3,000, without exceeding 50 % of the purchase price excluding VAT, for passenger cars that do not meet the criteria described in the previous point;
  • EUR 8,000, without exceeding 50 % of the purchase price excluding VAT, for vans.

The electrical energy consumption is determined during the WLTP test cycle as stated either in the European certificate of conformity or in another equivalent certificate issued by the vehicle manufacturer or an authorised representative and recorded in the national road vehicle database.

• up to EUR 1,000 for the following 100 % electric vehicles:
  • quadricycles;
  • motorcycles;
  • light motorcycles (125 cm³);
  • mopeds (scooter or pedelec45).

In the case of mopeds however, the aid is limited to 50 % of the purchase price excluding VAT and cannot exceed EUR 1,000;

• in the case of a hydrogen fuel cell vehicle, the amount of the subsidy is EUR 8,000, without exceeding 50 % of the purchase price excluding VAT, for passenger cars and vans.

Plug-in hybrid electric vehicle with CO₂ emissions of 50 g/km or less

For vehicles first put into service after 1 September 2020, the combined CO₂ emission value determined according to the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) is taken into account.

If the first entry into service of the vehicle:

• is between 1 January 2019 and 31 December 2021 and the date of conclusion of the sales contract or, in the case of leasing, of the rental or leasing contract of the vehicle is no later than 31 March 2021 inclusive, the amount of the subsidy is EUR 2,500 for passenger cars and vans;
• occurs at the latest on 31 December 2021 inclusive, and the signature date of the sales contract or, in the case of leasing, of the rental or leasing contract of the vehicle is between 1 April 2021 and 31 December 2021 inclusive, the amount of the subsidy is EUR 1,500 for passenger cars and vans.
• takes place no later than 31 December 2022 inclusive and the date of conclusion of the sales contract or, in the case of leasing, of the rental or leasing contract for the vehicle is between 1 April 2021 and 31 September 2021 inclusive, and the date of the initially planned delivery of the vehicle, as stated in the sales contract or, in the case of leasing, in the rental or leasing contract for the vehicle, is no later than 31 December 2021, the amount of the subsidy is EUR 1,500 for passenger cars and vans.

Cumulation of subsidies

A person can accumulate the subsidy granted for the vehicles mentioned above with the one for the purchase of a pedal-assisted bicycle or a bicycle.

These subsidies cannot be combined with tax deductions for sustainable mobility.

Forms / Online services

Authentic sources

Who to contact