Gilles Roth, Luxembourg's Minister of Finance;
Credit: © SIP / Claude Piscitelli
On Monday 21 July 2025, Luxembourg's Minister of Finance, Gilles Roth, presented the State's financial situation as of 30 June 2025 to members of the finance and budget execution committees of the Chamber of Deputies (Luxembourg's parliament).
In the first half of 2025, central government revenues reached €14.8 billion, according to ESA 2010 European accounting rules. This represents an increase of €367 million (+2.5%) compared to the same period in 2024.
Luxembourg Inland Revenue (ACD) recorded €7.5 billion in revenue as of 30 June 2025 - an increase of €223 million (+3.1%) compared to the previous year. Luxembourg's Ministry of Finance attributed this positive trend primarily to corporate income tax (+€260.3 million or +14.8%). Revenue from withholding tax on wages and salaries increased slightly (+€1.5 million), while taxable income decreased, mainly due to a lower tax rate compared to the same period in 2024.
Revenue collected by the Registration Duties, Estates and VAT Authority (AED) fell by €42.2 million (-1.1%) over one year. A €37.6 million increase in subscription tax failed to offset the drop in registration fees (-€38.8 million or -35.3%) and VAT (-€21.2 million or -0.8%). The Finance Ministry attributed the underperformance of registration fees to government support measures for housing access, while the VAT drop was linked to refunds related to exceptional end-of-year adjustments.
The Customs and Excise Agency (ADA) recorded €1.2 billion in revenue - an annual increase of €102 million (+9.5%).
On the expenditure side, central government spending rose to €14.9 billion (according to ESA 2010) as of 30 June 2025 - up €965 million (+6.9%) compared to the first half of 2024. The largest increases were in education, social security, and direct and indirect investment.
As a result, the central government posted a deficit of €111 million at the end of the first half of 2025.
Commenting on the figures, Minister Roth stated: "We are staying the course. Our finances remain solid despite the uncertainties. Our country is doing well - so are our economy and our financial centre. We continue to invest massively in our future and that of our children. And also in our social cohesion and our citizens. I remain cautiously optimistic about the future."
