Digital identity and e-governance: how e-services simplify the lives of Luxembourg residents

In simple words, e-government makes public services more accessible, transparent and efficient, while digital identity acts as a kind of citizen's "e-passport", allowing them to securely prove their identity online to receive services. In this article, we look at how Luxembourg has made a digital leap from 2022 to 2025 and how e-services have simplified the daily lives of the Grand Duchy's residents.

What are digital identity and e-governance?

A digital identity is a set of electronic data with which a person can authenticate their identity in the online space. In essence, it is an analogue of your passport or ID card, only in digital format. With digital identification (eID) you can securely log into personal accounts, sign applications with an electronic signature and access various services from the comfort of your own home. For example, the European Commission calls eID a "digital passport" that allows a person to prove their identity online and use services over the internet.

E-government (e-government, electronic government) is a system in which government agencies use digital technology to deliver services to citizens and businesses. 

The goal of e-governance is to make interaction with the state as convenient and efficient as possible. Online services allow people to obtain necessary certificates, submit applications, pay taxes or draw up documents via websites or applications, without paperwork and queues. This increases accessibility of services (24/7 from any device), transparency of the work of agencies and reduces bureaucratic costs.

The EU has adopted the Digital Decade programme, according to which by 2030 all key public services should be available online and every citizen should be able to use an eID to log in online. Luxembourg is a prime example of a country that is well on its way to achieving these goals.

Luxembourg's journey towards a digital state

The active digitalisation of the public sector in Luxembourg is underpinned by a clear strategy. In 2021, the government approved the Electronic Governance Strategy "Electronic Governance 2021-2025", which aims to strengthen e-government and move towards a fully-fledged digital state. 

The strategy emphasises three main priorities: focusing on user convenience, ensuring universal accessibility of digital services and strengthening citizens' trust in online services. Simply put, the government aims to make digital services understandable to everyone and popular commercial applications convenient and secure.

Establishment of the Ministry of Digitalisation

To coordinate these efforts, a separate Ministry for Digitalisation (Ministry for Digitalisation) was established in 2018. It has become a one-stop shop for the implementation of digital solutions in the work of all agencies;

In close cooperation with the State Centre for Information Technology (CTIE), the ministry is developing the infrastructure, standards and services required for e-government. This integrated approach ("whole of government as one") has enabled Luxembourg to develop a mature digital ecosystem by the early 2020s.

Digital Luxembourg

Back in 2014, the Digital Luxembourg initiative was launched - a kind of platform and philosophy of interdepartmental co-operation in IT. This brand unites ministries, municipalities, the private sector and civil society around the idea of digital transformation. As a result, by 2022 Luxembourg was consistently ranked among the EU leaders in a number of indicators: in the Digital Economy and Society Index (DESI) 2022, the country was ranked 8th out of 27 on a composite of indicators, with particularly high scores for connectivity and e-government services;

Already by the end of 2022, 96.5% of households had high-speed internet access (2nd highest in the EU) and 94% of government services were available online. Some 87% of residents were actively using the internet to interact with the state, well above the European average. In fact, Luxembourg already then had one of the most mature digital ecosystems supporting the needs of both citizens and businesses

Acceleration against the backdrop of a pandemic

A significant catalyst was the COVID-19 pandemic in 2020-2021, which demonstrated the importance of remote access to services. In the words of the relevant minister, Marc Hansen, "the pandemic has seriously pushed digitalisation forward". During this period, Luxembourg has intensified the launch of new solutions, which will be detailed below. For example, as early as July 2021, a mobile application MyGuichet.lu was launched to access the public services portal from a smartphone, and at the end of 2021 and beginning of 2022, the introduction of new electronic ID cards with enhanced digital capabilities began.

Samsung Memory, Unsplash

And the results have not been long in coming. In the European Commission's 2023 report, Luxembourg was praised for its progress in digital transformation, especially noting its success in the area of "digital administration". The country entered the European leaders in digital public services for citizens with a score of 95/100 (2nd place in the EU). And by 2025, according to the Digital Decade 2025 report, Luxembourg has almost reached the maximum values: 97.7/100 for citizen services (the 100/100 target is almost met) and 100/100 for business services;

The European Commission explicitly calls Luxembourg "Europe's digital leader", noting its targeted investments in advanced technologies and its status as a "digitalisation frontrunner" in the EU. In other words, in a few years, the country has made a qualitative leap from a merely good position to an almost benchmark digital state.

Consider the key elements: a modern electronic identity card system, the universal public services portal MyGuichet.lu and related mobile applications, and integration with common European initiatives.

Digital identity for everyone: eID and LuxTrust

The foundation of e-government is the secure digital identification of citizens. Luxembourg uses a combined system: a national electronic identity (eID) in the form of a new generation smart-ID card and the LuxTrust trusted services infrastructure.

Electronic ID card (eID card)

The new Luxembourg ID card, introduced in August 2021, contains an embedded electronic chip with personal data and cryptographic certificates. All citizens from the age of 15 permanently residing in the country are obliged to carry such a card. The chip contains not only standard information (full name, photo, personal number, etc.), but also certificates for electronic authentication and electronic signature, as well as biometric data (digitised photo and fingerprints);

This allows the ID-card to be used as a means of logging into online services and for legally significant electronic signature of documents. All data on the card is protected by sophisticated cryptographic mechanisms similar to those used in electronic passports (BAC, EAC, etc.), so that forgery or unauthorised access is excluded.

It is important to note that the transition to the new eID cards is gradual: each card is valid for 10 years, so it is planned to fully cover the entire population by 2032 (when the old models will be out of circulation). Nevertheless, by the beginning of 2022, about 90 000 eID cards with a chip had already been issued. Citizens who wish to receive the new card early can exchange it in their municipality for a symbolic fee of €15. The foundations for universal digital identification have thus been laid.

Special tools are required to utilise the capabilities of the eID card. Initially, it was required to connect the card to a computer via a card reader. However, in 2022, things became much more convenient with the launch of the GouvID mobile app.

GouvID: a smartphone instead of a card reader

GouvID is a mobile application released by the Luxembourg government in early 2022 specifically for eID cards. With it, citizens can use their eID card paired with a smartphone to log in to online services and sign documents. In fact, GouvID turns the phone into a wireless card reader and digital key. It is enough to link the card to the app once - and then one can confirm one's identity by simply authorising through GouvID.

The app was presented by Minister of Digitalisation Mark Hansen and was the third government app (after CovidCheck and MyGuichet). The main objective of GouvID is to make electronic identification easier and faster. As the minister noted, more and more people are making transactions directly from their smartphones, and the state is coming to meet them. Now, in order to access the portal of public services, it is enough to have a phone: GouvID reads the ID-card data and performs a secure login.

In addition to authorisation, through GouvID it is possible to apply electronic signatures (eSign) to submitted applications. For example, tax returns can now be digitally signed directly on your smartphone, without unnecessary paperwork. The application is available for free in the Apple App Store and Google Play, which increases its accessibility and usability;

hellooodesign, Unsplash

Since its launch, GouvID has been actively implemented: it allows, among other things, to complete and sign a tax return, apply for a student loan by attaching a photo of the documents, and immediately submit it online - all from the screen of a mobile phone. Even such a seemingly "analogue" matter as obtaining a fishing licence can now be done entirely online without a visit to the administration office

In addition, GouvID is closely integrated with MyGuichet.lu (about it further on) and other services. To use it, the ID card itself is required - the application is bound to its chip. Thus, the smartphone complements the eID, making the process more convenient;

GouvID was an important step towards abandoning physical carriers: according to the developers, in the future it will be possible to use the phone to authenticate identity in offline situations as well - for example, to store a digital driving licence in a phone-wallet instead of plastic. However, this requires a pan-European regulatory framework, which is currently being worked on. Nevertheless, at the national level, GouvID is already making life much easier for citizens.

LuxTrust: single access to all services

In parallel with the introduction of eID cards, Luxembourg also developed the LuxTrust infrastructure. LuxTrust is a national provider of electronic identification certificates and electronic signature services. Established back in 2005, the organisation ensures the issuance of secure digital identifiers, which are used by government agencies, banks and other entities. Almost every adult resident of Luxembourg is familiar with LuxTrust: it is through it that many people log on to online banking, the tax portal, etc..

For two-factor authentication, LuxTrust previously offered several means: a physical token generator of one-time codes, smart cards, QR code scanning devices and a mobile app. In the 2020s, the focus shifted to mobile technology. In 2024, the company announced a complete phase-out of obsolete tokens: from 31 December 2024, hardware token code generators will be phased out;

They are being replaced by the LuxTrust Mobile app, which provides a higher level of security and convenience. Already by April 2024, 80% of LuxTrust users have switched to the mobile app - evidence of how much residents appreciate the convenience of a smartphone instead of a separate device.

Thanks to LuxTrust, the population has a universal "key" to all e-services. The same credentials (most often a login/password pair + application confirmation) are used to log in to the MyGuichet.lu civil services portal, e-health systems, to sign applications, online banking, and so on. As of 2023, there were over 750 000 active LuxTrust users in the country - even more than the adult population (due to the inclusion of foreign residents and use by several agencies). In fact, the majority of Luxembourg residents already possess a LuxTrust digital identity, confirming the high level of coverage.

Entry via eIDAS: "digital Schengen"

Luxembourg is also involved in the pan-European system of mutual recognition of electronic identifiers - eIDAS. According to the eIDAS regulation, all EU countries must recognise the national eIDs of other states that are notified in the European register. This means that, for example, an Estonian or a German can use their national eID to authorise themselves in Luxembourg systems - and vice versa, a Luxembourger can access the public service portals of other EU countries using LuxTrust or their eID card.

In 2023, Luxembourg extended support for such logins. As of April 2023, logins on the MyGuichet.lu portal are officially allowed via eIDs from other EU countries. A citizen or company from any EU (or EEA) country can choose their national eID system for authentication - the list of supported countries includes 22 EU countries plus Liechtenstein;

This is particularly important for Luxembourg, with its large number of foreign residents and cross-border workers: now they do not have to obtain a local LuxTrust immediately to, for example, submit an online application in their place of residence. However, there are limitations - procedures requiring a qualified electronic signature (e.g. filing a tax return) still require a local Luxembourg certificate.

For its part, the Luxembourg eID card is already recognised in all connected EU countries, which opens up online access for Luxembourg citizens to the public services of 22 other countries + European Commission services with a single login. According to Eurostat statistics, around 13% of Luxembourgers used their eID to access foreign government services over the year. This is one of the highest rates in Europe (3rd place after Ireland and Sweden) and is well above the European average of 6%.

MyGuichet.lu - unified portal of public services

If digital identity is the key, the MyGuichet.lu portal is the door to all Luxembourg's electronic public services. MyGuichet is a universal web portal launched back in 2008 and significantly modernised in recent years. It serves as a centralised access point to all services provided by the country's public administrations and agencies.

Through MyGuichet.lu, residents can perform hundreds of different operations online: from applying for benefits, registering their place of residence, requesting a statement or certificate, to making an appointment with an official, submitting a tax return and paying fees. The portal has structured procedures by topic (family, health, construction, transport, work, etc.), easy search, hints and even step-by-step instructions and recommendations;

The portal is available in four languages - English, French, German and Luxembourgish - so that it can be used by all population groups. An important feature is a single private eSpace where user data, applications, digital documents, messages from authorities, etc. are stored. Once a citizen has created this account and linked his/her eID/LuxTrust to it, he/she receives a personalised secure storage space for interaction with government agencies.

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In 2021-2023, MyGuichet underwent a number of improvements. The MyGuichet.lu mobile app for smartphones and tablets was launched in July 2021. Now users don't have to log in from a PC - you can access everything directly from your phone. By 2023, the mobile application has already made it possible to perform almost all the same operations as the web portal: the developers have regularly expanded the functionality, adding the possibility of full application submission with electronic signature and online payment of state fees. For example, you can now apply for a change of address or request a postal vote through the app, signing the request with an electronic signature right on your phone. And the inbuilt system of payment by bank card or mobile payment allows you to pay the necessary fees at once without leaving the application. These innovations have significantly expanded the list of services available online and made interaction with the state even more prompt and seamless.

The Government IT Centre (CTIE) is actively supplementing MyGuichet with new features. In 2022, a convenient mechanism for scanning documents with a smartphone camera was introduced: if an application requires attachments (certificates, passports, photos, etc.), they can be immediately scanned through the application and attached to the form. Push notifications have also been implemented - now a citizen receives instant notifications on their phone about the status of their request or new messages from agencies. In 2023, the process of linking an account was simplified: previously, in order for the mobile application to work, it was necessary to first create a personal account on the website and link it to the application, but now it is possible to register and authorise directly through the application, using LuxTrust or by scanning a QR code - that is, to start working from scratch on a smartphone. Once an account is linked, logging into the app is done using a short PIN or biometrics, without re-entering long passwords. All these steps are aimed at motivating even more citizens to switch to digital interaction with the state.

The portal has played an important role in the administration of both everyday requests and very specific ones. Today, MyGuichet.lu has become an integral part of the lives of Luxembourgers. According to 2023, the portal offers more than 250 electronic procedures in various fields (health, social protection, business licensing, building permits, education, etc.). In 2023, more than 3.2 million transactions were carried out through MyGuichet, 28% more than the year before. The growth is impressive and shows how quickly citizens are adopting new digital habits. In fact, almost all common administrative matters can now be resolved online. Citizens appreciate the opportunity to save time: there is no need to go to the office, take a coupon, wait - just a couple of clicks. This is especially convenient for working people, parents with children, senior citizens and those who simply want to avoid unnecessary hassle.

John, Unsplash

Of course, such success would not have been possible without high trust in the system. And here it is important to note the role of LuxTrust, which was mentioned above: secure authorisation and signing on MyGuichet is ensured by national digital identification. The 750,000 active LuxTrust users are the audience that accesses the state portal every day, knowing that all transactions are protected. By the way, reliability and data protection is a priority for the state, which has been repeatedly stated by the government. The portal and applications meet strict security standards, traffic is encrypted, and qualified certificates are used. And independent structures like GovCERT monitor the cyber security of the infrastructure.

Importantly, MyGuichet's user interface is constantly being improved. In 2022, CTIE redesigned the portal to be fully adaptive. Now the pages automatically adjust to the screen of a phone, tablet or computer. That is, even if a citizen doesn't want to install an app, they can open the MyGuichet website in a mobile browser and get virtually the same experience. There is also a focus on multi-lingualism and simplicity in the presentation of content. On the initiative of the Ministry of Digitalisation, the portal publishes procedure descriptions in "easy-to-read" format. These are special texts in simplified language for people with cognitive disabilities or low levels of education. All this is aimed at ensuring that no one is left out of the digital benefits.

How e-services simplify life: examples and benefits

The combination of these technologies has turned routine interactions with the state into a faster and more comfortable process. Here are some typical situations of how things used to be and how they are now, thanks to digitalisation in Luxembourg:

EasyBiz

Looking to the future: the digital wallet and new horizons

Luxembourg is not resting on its laurels, but is actively involved in shaping the future of digital identity and services across Europe. One of the key projects for the coming years is the creation of the European Digital Identity Wallet. This is an EU initiative (eIDAS 2.0) that envisages the release of a unified application where citizens will be able to store their digital documents (ID, driving licence, diplomas, etc.) and present them when needed across the EU.

At the end of 2023, the Luxembourg Ministry of Digitalisation, together with CTIE, announced the launch of a pilot project to test the European Digital Wallet. Luxembourg has joined the POTENTIAL consortium involved in the trial implementation of the EUDI Wallet in different scenarios, funded by the European Commission. Within the 26-month pilot (2023-2025), 4 main use cases of the wallet are being developed in Luxembourg:

• Storing and presenting your driving licence on your smartphone - a digital driving licence in your wallet, suitable for checking instead of a plastic one.
• Access to online services of public authorities via wallet - i.e. authorisation and submission of applications using European ID Wallet.
• Opening a bank account remotely - providing the necessary identification documents from your wallet when you make a remote request to the bank.
• Remote signing of documents - application of wallet for qualified electronic signature of documents.

The Luxembourg authorities stress that the aim is to provide "a safe and secure digital wallet solution that is easy to use and whose documents are recognised across Europe". This is what is expected from the new phase of digital identity. In essence, it is about every resident receiving a universal application that replaces both physical documents and national applications like GouvID, with a guarantee of mutual recognition between countries.

In addition to the wallet, Luxembourg is also involved in other cutting-edge European initiatives: Gaia-X (European sovereign cloud storage), Euro Blockchain Services Infrastructure (pan-European blockchain infrastructure for public services), projects to implement the "once only" principle (so that data is not requested from citizens repeatedly). All this strengthens the country's position as an active player in shaping the EU's digital future.

At the national level, the strategy is expected to be updated after 2025. It is likely that the new plan will aim to achieve the goals of the Digital Decade by 2030: to increase the digital skills of the population, to increase the use of e-services to 100%, to fully integrate digital identity in all areas (including health, education, municipal services). Special emphasis will remain on cybersecurity and digital sovereignty: Luxembourg is already devoting resources to developing its own cloud infrastructure and open technologies to reduce dependence on external IT giants

We can also expect further penetration of artificial intelligence and automation in public administration. The country has a GovTech Lab, where pilot projects are being developed with the participation of startups and scientific centres. Solutions for intelligent document processing and automatic notifications of citizens about important events have already been implemented. It is likely that soon we will see chatbots for consultants on state portals, predictive systems for social services (for example, forecasting the need for kindergartens or doctors by district), and much more. An important principle is user-centricity, i.e. focusing on user convenience when implementing any technological innovations.

Of course, digital transformation is an ongoing process. Luxembourg continues to improve its services, takes into account citizens' feedback, and introduces innovations. But its model can already be called exemplary. It is not without reason that the country is being held up as an example of a "smart, sustainable and inclusive digital nation". Globally, as the world strives for smarter governance, the Luxembourg approach serves as an inspiring benchmark: even a small state, based on sound strategies and prioritising the convenience of citizens, can achieve outstanding results and provide its residents with a truly high quality of life through digital technologies.