Luxembourg State Revenues Rise 9.9% Despite €339m Deficit

On Monday 5 October 2026, Luxembourg's Minister of Finance, Gilles Roth, presented the State's financial situation as of 30 September 2026 to members of the finance and budget execution committees of the Chamber of Deputies (Luxembourg's parliament).

At the end of the third quarter of 2026, State revenue reached €23.9 billion, according to ESA 2010 European accounting rules. This represents an increase of €2.2 billion (+9.9%) compared with the same period in 2025.

On a cash basis, Luxembourg Inland Revenue (ACD) collected €11.9 billion by 30 September 2026, an increase of €1.2 billion (+11.6%) year-on-year. This growth was driven by the strong performance of corporate income tax, with revenue reaching €3.3 billion at the end of the third quarter, €582 million (+21.4%) more than one year earlier. Revenue from the solidarity tax levied on companies and individuals amounted to €610 million, up €51 million (+9.1%) compared with September 2025. The new national tax relating to Pillar 2 generated €239 million by 30 September 2026.

The Registration Duties, Estates and VAT Authority (AED) recorded €6.8 billion in tax revenue, almost €1 billion more (+€964 million), or an increase of 16.5% year-on-year. Apart from the exceptionally high level of inheritance tax revenue, these positive results were driven by VAT receipts of €4.7 billion, up €341 million (+7.8%) over one year, and subscription tax revenue of €1.1 billion, €106 million (+10.5%) higher than one year earlier.

The Customs and Excise Agency (ADA) collected €1.8 billion in total revenue, a decrease of €59 million (-3.1%) compared with the third quarter of 2025.

Excluding revenue collected by the State Treasury, total State revenue amounted to €20.6 billion on a cash basis, representing an increase of €2.1 billion (+11.6%) year-on-year.

On the expenditure side, State spending reached €24.2 billion under ESA 2010 rules as of 30 September 2026, an increase of €1.98 billion (+8.9%) compared with the same period in 2025. This increase was driven by current transfers from the State budget, notably to social security, municipalities and the European Union budget (€621 million, or 31.4% of the increase), public investment (€479 million, or 24.3%) and remuneration (€388 million, or 19.6%).

Compared with the previous quarters of 2026, the gap between revenue and expenditure widened, confirming the positive scissors effect observed at the end of June.

As of 30 September 2026, the central government balance showed a slight deficit of €339 million.

Commenting on the figures, Minister Roth stated: “I welcome these overall positive results in a difficult context. Public finances are holding up well and offer a favourable outlook for our citizens and, in particular, for younger generations. I remain confident about the future of our country, even though caution remains necessary.”