Luxembourg sets certification rules for ecological vessels to qualify for a 2% investment tax bonus.
The Luxembourg Maritime Affairs Commission has released Circular CAM 06/2025 on 18 June 2025, detailing the procedure for obtaining an approval certificate for ecological vessels under Article 32bis of the amended Income Tax Law of 4 December 1967 (LIR).
The certificate is required to access a 2% increase in the investment tax bonus under Article 152bis(7)(3) of the L.I.R. Eligible ships include those with alternative propulsion (e.g. hydrogen, wind), dual-fuel hybrids, and conventionally powered vessels equipped with certified emissions-reduction technology.
Applications must be submitted to the Direct Tax Administration (ACD) within three months of the end of the financial year in which the ship was acquired or constructed. The ACD will forward applications to CAM for assessment.
Required documents include a classification certificate, a technical description of the ship’s propulsion, and proof of compliance with the ecological criteria.