Financial aid for the purchase of an electric or hybrid vehicle

In order to encourage individuals to opt for electromobility and active mobility, thereby rendering transport cleaner and sustainable in the long run, a subsidy is now available for the purchase of a new vehicle (e.g. car, van, quad) which has to:

• be 100 % electric; or
• with a hydrogen fuel cell; or
• with a plug-in hybrid motor vehicle (including vans) with CO₂ emissions ≤ 50 g/km.

Who is concerned

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

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

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

• they are the holder of the vehicle in the context of a leasing contract. 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 deadlines: 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 available for vehicles:

• registered in Luxembourg for the first time between 1 January 2019 and 31 December 2021 included;
• which have not been previously registered abroad.

The registration of the vehicle in the applicant's name must occur no later than 6 months after the vehicle first entered into service.

Deadlines

Applicants can submit their application for the subsidy:

• at the earliest 7 months after the date of registration in the applicant's name;
• at the latest 2 years after the first registration of 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 registration in the applicant's name;
• at the latest 2 years after the first registration 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 motor vehicles and plug-in hybrid electric motor vehicles: a copy of a document provided by the electricity supplier certifying that the applicant, at the latest 6 months before the date of submission of the application, entered into a contract for the supply of green electricity from 100% renewable sources;

• a copy of the rental or lease contract identifying the car via its car 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, motorbikes, light motorcycles and mopeds, a receipted invoice indicating:
  • the number and date of the invoice;
  • 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 contract of sale is between 11 May 2020 and 31 March 2021 inclusive;
  • the vehicle is registered for the first time between 1 April 2021 and 31 December 2021 inclusive.

Amount of the subsidy

The subsidy is granted by the Ministry of the Environment, Climate and Sustainable Development. The financial aid measure amounts to:

• EUR 5,000 for passenger cars and vans:
• EUR 2,500 for plug-in cars or vans whose CO₂ emissions are less than or equal to 50 g of CO₂/km. It should be noted that for "plug-in" hybrid vehicles registered for the first time from 1 September 2020, only the CO₂ emissions determined during the WLTP test cycle will be taken into account;
• 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 measure is limited to 25 % of the purchase price excl. VAT and cannot exceed EUR 500.

However, the aid amounts to:

• EUR 8,000 for passenger cars or vans without exceeding 50 % of the vehicle's purchase price excluding VAT;
• 50 % of the vehicle's purchase price excluding VAT, without exceeding EUR 1,000, if the vehicle is a quadricycle, motorcycle or moped;

provided that:

• the date of signature of the contract of sale, or, in the case of leasing, of the rental or leasing contract of the vehicle, must be between 11 May 2020 and 31 March 2021;
• the vehicle is registered for the first time between 11 May 2020 and 31 December 2021 inclusive.

Cumulation rules

Subsidies cannot be combined with tax deductions for sustainable mobility.