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Luxembourg

Chance for Students: “Diplomat for a Day” Competition in Luxembourg

Young women in Luxembourg are being invited to take part in the 2026 “Diplomat for a Day” competition, a unique opportunity hosted by the British and Canadian embassies to give students a taste of international diplomacy. Winners will spend a day with embassy officials on March 10, 2026, joining discussions and observing real diplomatic work and leadership activities. The initiative celebrates International Women’s Day and aims to encourage girls to explore careers in global affairs, leadership, and international relations, especially in a field where women have historically been underrepresented.  Participants will gain first-hand insights into how embassies operate, the challenges diplomats face, and the importance of cross-border cooperation on issues like human rights and equality.  The competition builds on similar programs run in other European cities that have helped young women develop confidence, networking skills, and a deeper understanding of how global policies are shaped.  Read more: gov.uk/government/news/luxembourg-enter-the-diplomat-for-a-day-competition 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

U.S. Plans to Block Big Investors From Buying Family Homes

U.S. President Donald Trump has announced a plan to ban large institutional investors from purchasing single-family homes in the United States, aiming to make homeownership more affordable for average families and young buyers. He declared on social media that “people live in homes, not corporations,” and said he will ask Congress to turn the policy into law, though specific implementation details and legal authority haven’t yet been outlined. The move targets major Wall Street firms and private equity groups that have bought up tens of thousands of houses to rent out, a trend critics say has tightened supply and driven up prices in many housing markets. Stocks of some real estate investors, including Blackstone, dropped after the announcement, reflecting market concern about the potential impact. Supporters of the plan argue it will help first-time buyers compete and slow corporate dominance in the housing market, particularly where competition from well-funded buyers has priced out individuals. Trump said he may discuss broader housing affordability policies at the upcoming World Economic Forum in Davos. However, housing experts caution that large institutional investors account for only a small share of the total housing stock, and that restricting their purchases may not significantly ease overall prices without addressing broader supply shortages.  Read more: reuters.com/world/us/us-will-ban-large-institutional-investors-buying-single-family-homes-trump-says-2026-01-07 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.

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…

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