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Life & Style

Family, Tax and Social Support Changes in Luxembourg from 1 January 2026

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/

Life & Style

Parliament Votes on Tax Reform: What Is Being Decided and Why It Matters

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…

Luxembourg

Luxembourg’s Air Quality: Fresh but Not Perfect

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. 

Luxembourg

Institute of Health Opens 25 Research and Academic Positions in Luxembourg

The Luxembourg Institute of Health (LIH) has announced 25 new openings for PhD candidates, postdoctoral researchers, and academic professionals, offering opportunities across multiple scientific and support fields. The vacancies are part of LIH’s ongoing efforts to strengthen research in areas such as biomedical science, precision health, cancer, and infectious diseases. The available roles include PhD and postdoctoral positions, research and technical posts, as well as selected academic and professional support functions. These opportunities are aimed at both early-career researchers and experienced professionals seeking to work in an international research environment. LIH is recognized as a key public research institution in Luxembourg, contributing to health innovation through interdisciplinary and collaborative research. Selected candidates will work in a modern, well-funded research setting with strong links to European scientific networks. Interested applicants are encouraged to review the full list of positions and application details through the official announcement. Read more: https://scholaridea.com/2025/09/29/luxembourg-institute-of-health-invites-applications-for-vacant-25-phd-postdoc-and-academic-positions/ 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

Bitter Cold and Snowy Conditions Grip Luxembourg

Luxembourg is waking up to a deep winter chill today as temperatures hover well below freezing across the Grand Duchy. According to the latest forecast, the current temperature in Luxembourg City is around -5 °C with a RealFeel® near -10 °C, and winds from the southwest gusting at about 13 km/h. The day is expected to remain mostly cloudy with intermittent snow and flurries this afternoon, though accumulations are likely to be light. Tonight will stay cold with lows near -5 °C under partly to mostly cloudy skies. A yellow weather warning for wintry conditions is in place, reflecting the potential for hazardous weather through the early morning hours. Overnight lows in some areas could dip as low as -8 °C to -10 °C, with feels-like temperatures plunging even further, raising the risk of frostbite on exposed skin and icy patches on roads and pavements. As the work week continues, the cold pattern shows little sign of immediate relief. Tuesday will remain chilly with temperatures staying near or below freezing and overcast skies, while Wednesday is forecast to bring snowfall with potential accumulations of 5–10 cm and icy conditions, especially early in the day.  These conditions are typical for January in Luxembourg, the coldest month of the year, when daily temperatures often range from just below freezing to a few degrees above, and snowfall is not uncommon, particularly in higher terrain. 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. 

News

Luxembourg Opens Doors to Long-Term Residency

Luxembourg continues to attract global interest as a place to live, work, and settle long-term, and recent coverage highlights the possibility of Indians applying for permanent residency status in the country. This interest comes as more people consider relocating to European nations for better career and lifestyle opportunities.  Under Luxembourg’s immigration rules, third-country nationals (including Indians) may apply for a long-term residence permit after living legally and continuously in the country for at least five years. Once granted, permanent residence allows holders to live and work in Luxembourg indefinitely without needing to renew short-term visas.  To be eligible, applicants must have maintained lawful residence for the full period, with allowed absences under specific limits, and submit their application to the country’s immigration authorities. These rules apply equally to all third-country nationals who meet the criteria.  Although some countries in Europe offer fast-track or investment-linked residency programs, Luxembourg’s main pathway remains tied to long-term stay and integration. There are also options like residence-by-investment programs where wealthy applicants can gain residence through economic contributions, though these typically require significant investment.  For Indians interested in settling in Europe, understanding Luxembourg’s requirements now can help plan long-term relocation strategies, whether through work, study, or business pathways. Read more: msn.com/en-in/news/world/want-to-live-in-luxembourg-the-country-is-offering-a-permanent-residency-and-indians-can-apply-too/ar-AA1N4sFy?apiversion=v2&domshim=1&noservercache=1… 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

Europe Travel Grows: New Flights to Luxembourg & More in 2026

Europe’s aviation industry is gearing up for a big expansion in 2026, with new routes planned and existing services strengthened to meet rising demand. Luxembourg Airport is set to become an even more important travel hub as airlines broaden their summer schedules and offer more direct connections across the continent. The national airline Luxair is launching nine new seasonal destinations for summer 2026, linking Luxembourg with cities such as Girona in Spain, Helsinki in Finland, and Edinburgh in Scotland. These additions will help both business and leisure travelers reach popular European hotspots without layovers. Low-cost carrier Ryanair is also expanding services to and from Luxembourg, including flights to major cities like Madrid, adding more options for budget-minded travelers. This follows broader trends in European air travel that are pushing carriers to compete with wider route networks. Beyond Luxembourg, airlines across Europe are launching new seasonal routes for summer 2026, enabling easier access from North America and within Europe to popular destinations such as Nice, Barcelona, and Milan. These expansions reflect sustained growth in international and regional air travel post-pandemic. With all these changes, travel options for summer 2026 are expected to be more varied, affordable, and convenient, making it one of the most exciting seasons yet for exploring Europe by air. Read more: travelandtourworld.com/news/article/new-flights-to-luxembourg-madrid-milan-and-malta-in-2026-heres-what-you-need-to-know 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

Luxembourg’s Defence Strategy Boosts Tourism Confidence

Luxembourg’s increased defence spending in 2025 is having an unexpected impact on tourism by raising the country’s profile as a secure, stable destination. The government’s acceleration of defence investment toward NATO targets has drawn international delegations, security forums and business visitors, boosting hotel bookings and event attendance. Tourism officials are leveraging this momentum to position Luxembourg as a year-round destination for conferences and business events, especially in defence and technology sectors. This shift is generating economic benefits beyond traditional leisure travel. Enhanced security measures are also strengthening visitor confidence, with upgraded systems and cyber protections reinforcing Luxembourg’s reputation as a safe place to visit. Cultural attractions and local hospitality continue to complement this image for international travellers. Read more: https://www.travelandtourworld.com/news/article/luxembourg-tourism-gains-new-momentum-as-2025-defence-strategy-boosts-events-security-image-visitor-confidence/ 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

Luxembourg Shines with Christmas Magic and Cozy Festive Markets

Luxembourg City, often thought of as calm and orderly, comes alive in December with festive cheer and twinkling lights that warm the winter air. The annual Winterlights Festival turns the capital into a glowing celebration spread across the city’s streets and squares, where tastefully decorated Christmas markets and friendly stalls offer local crafts, seasonal foods, and lively holiday spirit without the crowds found in bigger European capitals.  Visitors strolling through markets at Place d’Armes, Place de la Constitution, and Place de Paris will find traditional seasonal treats like Luxembourger specialties, mulled wine, roasted chestnuts, and Gromperekichelcher potato cakes, all enjoyed with warm drinks by outdoor heaters that add to the cozy atmosphere.  Unlike larger Christmas fairs, Luxembourg’s festive scene is thoughtfully spread out across multiple areas, making it easy to wander between illuminated chalets and enjoy panoramic views of the city without feeling rushed. The free public transport in the capital also helps guests hop between different market zones at their own pace. Beyond food and gifts, the Winterlights Festival includes activities like ice-skating, live music, cultural exhibitions, and light displays that bring families and friends together in a relaxed and joyful celebration of the season.  For those seeking a festive European getaway with charm, tradition, and space to enjoy the season’s simple pleasures, Luxembourg’s Christmas markets offer a magical and welcoming experience that invites visitors to slow down and savor the season.  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.

News

€2 Million Boost: Luxembourg Strengthens FEMIP’s Reach in MENA

On 6 December 2025, Luxembourg reaffirmed its commitment to global development by contributing €2 million to the European Investment Bank (EIB)-managed FEMIP Trust Fund. The new funding brings the total size of FEMIP to €72 million — reinforcing the fund’s ability to deliver technical assistance across the Middle East and North Africa (MENA) region.  The FEMIP Trust Fund, originally established in 2004, supports project preparation and implementation in non-EU countries bordering the Mediterranean. So far, it has backed nearly 100 grant operations, which in turn have facilitated close to €6.7 billion in total investments, including €3.8 billion provided by the EIB through loans.  According to EIB President Nadia Calviño, Luxembourg’s latest contribution strengthens the institution’s capacity to back infrastructure, social programs, and sustainable-development projects in a region that needs stability and growth. The Luxembourg Finance Minister Gilles Roth said the move underscores the country’s long-standing role as a major donor, and aligns with broader EU goals of fostering economic resilience, social inclusion, and opportunity beyond Europe’s borders.  Read more - europeansting.com/2025/12/08/luxembourg-contributes-e2-million-to-eib-managed-femip-trust-fund-for-projects-preparation-and-implementation-in-the-mena-region  Join the community of your own - #1 homegrown LuxExpats app SignUp Free : luxembourgexpats.lu

Health & Fitness

⚠️ Global Recall of Glucose Sensors — Luxembourg Users Also Affected

A major safety alert has been issued for certain Abbott glucose-monitoring sensors, after reports of seven deaths and more than 700 serious injuries worldwide linked to inaccurate blood-sugar readings. While the issue has dominated headlines abroad, the affected model is also used by diabetes patients in Luxembourg, making the recall directly relevant to local users. According to Euronews, faulty sensors may display dangerously incorrect high or low glucose values, which can lead patients to inject insulin or skip treatment based on false data. CNews reports that multiple batches distributed across Europe are involved, and users are urged to check reference numbers and request replacements if needed. Cardiovascular Business notes that millions of units are impacted globally, and medical experts warn that even a single incorrect reading can have life-threatening consequences. Luxembourg pharmacies and diabetes centres are already advising patients to verify their sensor codes and watch for abnormal readings, particularly dizziness, confusion, or unexpected glucose swings. Abbott is offering replacements for affected units, and doctors stress that patients should not stop monitoring glucose, but contact a healthcare professional immediately if something feels wrong. Read More - https://www.euronews.com/health/2025/12/05/faulty-glucose-monitors-linked-to-7-deaths-and-more-than-700-injuries-worldwide-heres-what?utm_source https://www.cnews.fr/sante/2025-12-05/rappel-massif-de-capteurs-de-glycemie-quelles-sont-les-references-concernees?utm_source https://cardiovascularbusiness.com/topics/clinical/heart-health/abbott-shares-safety-concerns-millions-cgm-sensors-7-deaths-reported?utm_source Join the community of your own - #1 homegrown LuxExpats app SignUp Free : luxembourgexpats.lu

News

Luxembourg firms invited to shape “living together” at work

Luxembourg’s government is inviting companies to take part in a new nationwide survey to better understand how “living together” — in all its cultural diversity — works in workplaces. The Ministry of Family Affairs, Solidarity, Living Together and Reception of Refugees, together with IMS Luxembourg, has launched the consultation under the framework of the law adopted on 23 August 2023 promoting intercultural living together. The survey — which includes an online questionnaire for companies and staff, and optional interviews with organisations across various sectors — is especially relevant for firms employing cross-border workers. The goal is to collect data on companies’ existing practices and interest in intercultural coexistence, identify positive examples already in place, and understand what both employers and employees expect to feel included and respected at work.  Findings from this consultation will help shape a national platform dedicated to promoting intercultural living together in professional settings — a step aimed at ensuring Luxembourg’s workplaces reflect the country’s diversity, and offer inclusive, supportive environments for everyone.  Read More : https://gouvernement.lu/en/actualites.gouv2024_mfsva%2Ben%2Bactualites%2B2025%2B03-consultation-vivre-ensemble-entreprise.html?utm_source=  https://www.publicnow.com/view/9E54A5F1C2CA2CDDD05B063D85070539941A11FB?1764769800  Join the community of your own - #1 homegrown LuxExpats app SignUp Free : luxembourgexpats.lu  

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