Never without my leased car

By Audrey SomnardMisch Pautsch Switch to French for original article

Not owning your car is widespread in Luxembourg. Leasing is a benefit in kind subject to legislation that now favours electric cars. In a context where the infrastructure of recharging stations is lagging behind, employees and companies are a bit lost.

Having a car as a benefit in kind is a significant carrot for employees in Luxembourg. It is often part of the salary packages offered by the country's large companies, which sometimes have to manage fleets of several hundred vehicles. Depending on their grade and salary, employees are given an allowance to choose the model of their dreams from the leasing company's catalogue. In Luxembourg, benefits in kind (meal vouchers, company car, contributions to a supplementary pension scheme, etc.) are part of the remuneration policy of many companies.

In 2018, the Statec found that 26 per cent of employees residing in Luxembourg received a benefit in kind and among them, eight per cent benefited from a company car for private purposes. The car was also the most common benefit for managers and executives. The Société Nationale de Circulation Automobile (SNCA) counted 443,301 cars registered in Luxembourg on January 1st, 2022, i.e. 94,585 cars registered in the name of a legal person (a company), including 41,462 leased cars.

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