Luxembourg’s revamped company car benefit-in-kind (BIK) system, introduced at the beginning of 2025, is now being criticised for unintentionally hindering the transition to electric vehicles (EVs) by making traditional internal combustion engine (ICE) cars comparatively more attractive for private purchase.
Company cars have long been a popular form of employee compensation in Luxembourg, offering employees not only private transport but also significant tax advantages. Until the end of 2024, these tax benefits made company cars an…

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