Luxembourgers will pay less taxes
Oleg Ivanov, Unsplash
On 11 December 2024, the Luxembourg Parliament approved Bill No. 8414, known as the "Entlaaschtungs-Pak". This ambitious tax package includes 17 key measures aimed at increasing the purchasing power of the population, enhancing the competitiveness of the economy and improving the business environment.
From 1 January 2025, the income tax scale will be adjusted by 2.5 indexation points. This is a continuation of the reform initiated in 2024, when the scale was reduced by 4 points. For the first time in Luxembourg's history, the minimum wage for unskilled workers will be exempt from taxation for all tax classes.
Bonuses await legal entities as well: for example, companies employing unemployed people will receive tax deductions until the end of 2026. A special bonus for young employees and tax relief on overtime for cross-border workers will also be introduced.
"Entlaaschtungs-Pak" marks a new phase in Luxembourg's tax policy, strengthening economic stability and the well-being of citizens. This reform opens up opportunities for economic growth, family support and business development, strengthening Luxembourg's position as a financial centre.
