Since January 1, 2025, Luxembourg has raised the exemption threshold for small businesses from €35,000 to €50,000, with a tolerance limit of 10%, bringing the maximum to €55,000. This change is set to benefit not only local enterprises but also small businesses established in other EU Member States that engage with the cross-border franchise scheme in their respective countries.
Under the new measures, Luxembourg-based companies can also access this exemption regime in other EU countries as long as their total turnover within the European Union remains below €100,000.
To participate in this scheme, businesses registered in Luxembourg must complete their registration with the Economic Development Agency (EDA) through MyGuichet.lu and are required to declare their turnover across EU Member States on a quarterly basis.
This policy update is designed to support small businesses by providing them with an opportunity to thrive in an increasingly competitive market. By simplifying the regulatory framework and offering financial relief, Luxembourg aims to foster a more favorable environment for entrepreneurship within its borders and beyond.
As these changes approach, all eligible businesses should ensure they understand the registration process and compliance requirements to take full advantage of the benefits available under the new exemptions.
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