The bill seeks to enhance fiscal stability, promote continued workforce participation, and encourage investments in energy-efficient housing.
The Luxembourg government submitted a bill to the Chamber of Deputies on 15 October 2025 aimed at enhancing fiscal stability, promoting continued workforce participation, and encouraging investments in energy-efficient housing.
The proposed law seeks to amend several existing statutes on taxation and excise duties. Among its key measures is the introduction of a new “Abatement for Remaining Active in Professional Life” (AMVP), which provides a tax incentive for employees who choose to work beyond the statutory retirement age. This measure is projected to cost the state between EUR 9 million and EUR 11 million annually.
The bill also proposes raising the maximum annual tax deduction for contributions to complementary old-age pension contracts from EUR 3,200 to EUR 4,500. In addition, it increases the accelerated depreciation rate for sustainable energy renovation investments in rental properties from 6% to 10%, supporting energy efficiency in the housing sector.
Further amendments include technical updates to the “CO2 Tax” to avoid double taxation on certain energy products and a modernisation of the “alcopops surtax” regime. The proposal also introduces an exemption from the surtax for low-alcohol wine mixtures.
