From 1 January 2026, several changes affecting families, taxpayers and social support will come into force in Luxembourg. These measures are part of the government’s officially published “Nouveautés 2026” and apply to everyday situations such as family taxation, retirement planning and support for older residents. Family-Related Tax Measures A new targeted tax credit will apply for parents in shared custody situations. Parents whose child does not live permanently in their household due to alternating residence arrangements, and who do not benefit from tax class 1a, may apply for a tax credit of up to EUR 922.50 per child. This measure applies specifically to the 2025 and 2026 tax years and is intended to address situations where parents contribute financially but do not qualify for existing family-based tax advantages. This tax credit must be requested through the tax declaration process and is not applied automatically. Tax Adjustments Supporting Working Individuals and Retirement Planning Several tax adjustments entering into force in 2026 affect individuals nearing retirement or planning for long-term financial security. A new tax allowance is introduced for individuals who are eligible for early old-age pension but choose to continue working until the legal retirement age of 65. This allowance allows a reduction of taxable income of up to EUR 9,000 per year, provided the eligibility conditions are met. In parallel, the annual deductible ceiling for contributions to voluntary retirement savings contracts (third-pillar pension schemes) will increase from EUR 3,200 to EUR 4,500. This change applies to eligible retirement provision contracts and is intended to strengthen incentives for private pension savings. Social Support Adjustments for Older Residents As part of the 2026 measures, adjustments will be made to social support mechanisms for older residents. This includes updates to the complément pour personnes âgées (COMPA) and related pension-linked benefits. These changes are designed to reflect current living costs and ensure continued support for older residents with limited income. The updated parameters apply from 1 January 2026 and are administered through the existing social security and pension systems. Key Points for Residents • New family-related tax credit for parents in shared custody arrangements • Higher deductible limits for voluntary retirement savings • New tax allowance for individuals who continue working beyond early pension eligibility • Adjustments to social support mechanisms for older residents • All measures apply from 1 January 2026 unless otherwise specified Residents affected by these changes should review their tax situation ahead of the 2026 tax year and consult official guidance when submitting tax declarations or applying for benefits. Official Sources Government of Luxembourg – Nouveautés 2026 (official list of tax and social measures effective from 1 January 2026) https://gouvernement.lu/fr/actualites/toutes_actualites/articles/2025/12-decembre/nouveautes-2026.html Ministry of Family, Solidarities, Living Together and Childcare https://mfamigr.gouvernement.lu/ Administration des Contributions Directes (Luxembourg tax administration) https://impotsdirects.public.lu/ Caisse Nationale d’Assurance Pension (pensions and COMPA information) https://cnap.public.lu/

Luxembourg’s Parliament is expected to vote later in 2026 on a major reform of the personal income tax system. The decisions taken during this legislative process will shape how individuals are taxed in the coming years, although the changes will not take effect immediately. We explain what the reform involves, what Parliament will vote on in 2026, and what residents should realistically expect. Why Tax Reform Is Being Proposed Luxembourg’s current income tax system is based on three tax classes, which apply different tax rates depending on marital status and household situation. Over time, this structure has been criticised by the government and advisory bodies for being complex and increasingly misaligned with modern household and employment patterns. The government has therefore proposed a structural reform with the stated objectives of: Simplifying the tax system Reducing disparities between different household types Increasing purchasing power, particularly for low- and middle-income earners To implement this, a draft law has been submitted to the Chamber of Deputies, initiating the parliamentary process. The Core Proposal: A Single Tax Scale The central element of the reform is the introduction of a single personal income tax scale that would apply to all individual taxpayers. Current structure Class 1: Singles Class 1a: Certain single parents and older residents Class 2: Married couples and registered partners Tax liability currently depends not only on income, but also on household composition. Proposed structure One unified tax scale for all individuals Higher tax-free income thresholds Targeted tax credits and allowances instead of tax-class-based advantages The government has indicated that this new structure is intended to apply regardless of marital status, with social policy objectives addressed through credits rather than tax classes. What Parliament Will Decide in 2026 During 2026, Members of Parliament will debate and vote on several key aspects of the reform. 1. Adoption of the Reform Law The main bill introducing the single tax scale has been formally tabled and assigned to parliamentary committees. MPs will review: The structure of the new tax brackets The level of tax-free income The estimated cost to public finances A final vote is expected before the end of 2026. 2. Transitional Arrangements To avoid abrupt changes, the proposal includes transitional measures. These are intended to ensure that taxpayers who currently benefit from the existing system are not immediately disadvantaged. Parliament will decide: The length of the transition period Whether taxpayers can temporarily remain under the old system if it is more favourable These provisions are a central part of the parliamentary debate. 3. Related Credits and Allowances Alongside the new tax scale, Parliament will also vote on accompanying measures, including: Child-related tax credits Adjustments for single parents Changes to deductions linked to pensions and long-term savings These measures are designed to maintain social support within the new structure. Timeline for Implementation Even if Parliament approves the reform in 2026, the changes will not apply immediately. 2026–2027: Legislative adoption, administrative preparation, and publication of guidance Planned application date: 1 January 2028 This transition period is intended to allow both taxpayers and tax authorities to prepare. Expected Impact on Taxpayers According to government projections: Singles and single-income households are likely to see reduced tax pressure Middle-income earners may benefit from higher tax-free thresholds Families will rely more on explicit credits rather than tax-class advantages High-income households are not expected to see significant structural changes Final outcomes will depend on the details adopted by Parliament. Why This Matters for Residents Income tax affects: Monthly net income Household budgeting Decisions related to work, marriage, and childcare Long-term financial planning The 2026 parliamentary votes will determine the framework for these factors from 2028 onward. The parliamentary votes on tax reform in 2026 represent a structural decision about how Luxembourg taxes individual income. While the reform is gradual and includes long transition periods, it marks a shift away from household-based tax classes toward a more individualised system. For residents, the key point is that the rules decided in 2026 will shape personal taxation for many years, even though practical effects will only be felt later. Official Government & Parliamentary Sources Luxembourg Government – Presentation of the tax reform packagehttps://gouvernement.lu/fr/actualites/toutes_actualites/communiques/2026/01-janvier/06-presentation… Chamber of Deputies – Legislative dossier (Bill introducing the single tax scale)https://www.chd.lu/fr/dossier/8676 Luxembourg Government – Overview of changes affecting residents in 2026https://gouvernement.lu/fr/actualites/toutes_actualites/articles/2025/12-decembre/nouveautes-2026.h…

Digital advertising company Criteo has announced plans to move its legal headquarters from France to Luxembourg. The proposal will be put to shareholders for approval in an upcoming meeting. The company said the move is part of a broader strategy to simplify its corporate structure and improve flexibility for global operations. Criteo also plans to adjust its stock listing structure in the United States. If approved, the relocation is expected to be completed later this year, while the company continues its operations across multiple markets. Read more: https://www.gurufocus.com/news/4099245/criteo-crto-plans-to-relocate-legal-domicile-to-luxembourg Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at www.luxembourgexpats.lu and become part of Luxembourg’s trusted expats network.  

India and Luxembourg have expressed interest in working more closely across fast-growing sectors such as fintech, artificial intelligence, and space technology. The discussion took place during Indian External Affairs Minister S. Jaishankar’s official visit to Luxembourg. Both countries see strong potential in combining India’s technology talent with Luxembourg’s financial and innovation expertise. Cooperation in digital services and advanced research was also highlighted. The leaders agreed that stronger collaboration could benefit businesses and strengthen India-EU relations in the long term. Read more: https://www.sentinelassam.com/more-news/international/india-and-luxembourg-can-collaborate-more-productively-in-fintech-ai-and-space-jaishankar Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at www.luxembourgexpats.lu and become part of Luxembourg’s trusted expats network.

Luxembourg’s financial watchdog has fined Rakuten Europe Bank after finding weaknesses in its anti-money laundering systems. The regulator said the bank did not properly monitor transactions and failed to act on risk alerts for a long period. The inspection revealed that some compliance tools were outdated and several alerts linked to customer checks were left unresolved. These gaps increased the risk of financial misuse and showed weak internal controls. Rakuten Europe Bank has acknowledged the issues and stated that it is taking steps to improve its systems and processes. The action highlights Luxembourg’s strict approach to enforcing financial regulations. Read more: amlintelligence.com/2026/01/news-luxembourg-fines-japanese-lender-rakuten-bank-for-aml-failings Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network.

As winter sets in, Ayurveda offers timeless guidance to help people stay healthy and balanced during the cold months. This holistic approach emphasizes keeping the body warm with layered clothing, warm drinks like ginger tea, and seasonal, cooked foods rich in immune-supporting spices such as turmeric and black pepper.  Daily self-massage (Abhyanga) with warm oil can help maintain skin moisture and improve circulation, while gentle exercise like yoga or brisk walks keeps the body active. Staying hydrated with warm water and prioritizing rest are also key to maintaining overall vitality and well-being in winter.  Read more → ayurvedaluxembourg.com/post/ayurveda-and-winter-care-embrace-the-season-with-balance-and-warmth Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network. 

Winter weather conditions in Luxembourg are expected to bring chilly temperatures and winter precipitation, with forecasts predicting light to moderate snowfall and icy patches through the season.  According to updated local forecasts, snow accumulation is possible over the coming days with varying probabilities of light snow and trace ice, highlighting the need for winter preparedness as temperatures hover around freezing.  Residents and visitors are advised to stay informed about local weather updates and take precautions, as winter conditions may affect travel and outdoor activities.  Read more → accuweather.com/en/lu/luxembourg/228714/winter-weather-forecast/228714  Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network. 

China Southern Airlines has chosen APG to serve as its General Sales Agent (GSA) in both Belgium and Luxembourg, strengthening the airline’s commercial presence and sales efforts in these markets.  Under the new agreement, APG will manage comprehensive sales, marketing, and distribution activities aimed at increasing visibility and supporting growth for China Southern Airlines across the region. APG and China Southern have worked together for over two decades, and this latest expansion reflects their long-standing partnership and APG’s role as one of the world’s largest airline representation networks.  The move aligns with APG’s wider strategy to enhance its global airline services and support international carriers in key markets.  Read more → traveldailynews.com/aviation/china-southern-airlines-appoints-apg-as-gsa-in-belgium-and-luxembourg  Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network. 

Luxembourg generally enjoys good air quality, with its national average Air Quality Index (AQI) showing fairly low pollution compared to many countries around the world. According to IQAir, the country’s yearly average AQI⁺ is around 42, and fine particulate matter (PM2.5) — which can affect breathing and health — measures about 7.5 µg/m³, slightly above the World Health Organization’s (WHO) recommended limit.  Real-time measurements show that air quality usually stays in the “good to moderate” range, although levels can vary day-to-day with weather conditions and seasonal changes.  PM2.5 remains the main pollutant tracked in Luxembourg, and on many days it stays just above WHO annual guidelines, indicating overall clean air but with room for improvement.  Other tracking and environmental studies suggest that nitrogen dioxide (NO₂) levels from traffic and city activity are staying within safe limits and many locations are already meeting future European air standards set for 2030, showing steady progress in managing pollution.  If you’re curious about the latest hourly air quality maps or want to keep an eye on pollution while planning outdoor activities, official IQAir tools provide real-time updates. Read more: iqair.com/in-en/luxembourg Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network. 

India’s External Affairs Minister Dr. S. Jaishankar has started an official visit to Luxembourg as part of a week-long trip that also includes France, aiming to strengthen diplomatic and strategic ties. He was welcomed on arrival in Luxembourg on January 5, 2026, with warm greetings from India’s Ambassador and local officials, signalling friendly relations between the two countries. Before reaching Luxembourg, Jaishankar conducted high-level meetings in Paris, including talks with the International Energy Agency’s head about global energy issues and India’s energy goals. His official programme in Luxembourg includes meetings with top government leaders to discuss bilateral relations and international topics of mutual interest. He is expected to engage with local Indian communities and further deepen cooperation. This visit reflects India’s ongoing efforts to expand partnerships in Europe on issues spanning diplomacy, trade, culture, and global cooperation. Read more: socialnews.xyz/2026/01/05/luxembourg-s-jaishankar-arrives-on-official-visit-gallery Join Luxembourg Expats, the #1 homegrown community for expats in Luxembourg. Connect with people and businesses locally - discover expats focused local services, buy and sell items, find housing and apartment rentals and buys, events, discounts and meet people to make friends - all in one expats companion app in Luxembourg. Sign up free at luxembourgexpats.lu and become part of Luxembourg’s trusted expats network.