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RTL Today interviewed Finance Minister Gilles Roth on the significance of the modernised expat tax regime

Under the motto, "for people, for upswing", Christian Social People's Party (CSV) Finance Minister Gilles Roth presented the 2027 budget to the Chamber of Deputies on Wednesday. According to the minister, at the heart of the budget lies the aim of ramping up investment and offering targeted relief to households and businesses. Much of the opposition's criticism, however, centres on the level of debt taken on by the state, projected to be over 29% of the country's GDP, a widening deficit, and a lack of strategy for the increased spending.

Minister Roth joined RTL Today in Kirchberg to answer questions on the impact of the modernised expat tax regime, what the budget means for families, and why the 2027 budget is, in his words, a "seized" opportunity for Luxembourg's economic recovery. In January 2025, the government modernised Luxembourg's expat tax regime, which, according to the minister, was a request from Luxembourg business community, yielding "very good results." He paid tribute to the country's international community, noting how the international and young workforce was boosting Luxembourg's financial sector.

In response to whether the expat tax regime solely aims to attract new talent or benefits current expats too, the minister responded that, simply put, the expat tax regime allows for 50% of eligible gross annual income to be exempt from income tax, up to a remuneration base of €400,000 per year. This, the minister said, is to attract the best talent and "to assure that they will be retained by these companies".

Also today

• Mobility Minister Yuriko Backes has officially inaugurated the new Howald multimodal mobility exchange hub.
• Over 50,000 people took part in the Vëlosummer initiative.
• Luxembourg and Cape Verde have convened their 25th annual partnership commission to assess their bilateral cooperation.
• South Korea test-fires its first homegrown hypersonic weapon.
• Israel has significantly scaled back the British diplomatic presence in Jerusalem, reducing operations at the historic consulate
• Germany lifts GDP forecast as economy withstands Iran war

On air

Steps tested John's knowledge of celebrities and their football team loves. It was misheard lyrics with Lucy!

Figure of the day

50 of the 68 Prolek farmers will supply their milk to Luxlait from 1 April 2027, Luxlait has confirmed.

• The corresponding contract between the farmers and the company Solarec, in which Luxlait is a shareholder, was signed on Wednesday. A solution has been found that will protect the dairy farmers and their families, though it also carries costs and risks for Luxlait.
• The lasting success of the solution, Luxlait pointed out, will depend on the capacity of the Luxembourg market to maintain its own food and agricultural sector. Around five months ago, the French company Lactalis, which also owns EKABE, announced that it would no longer collect milk from the 68 Prolek farmers after 31 March 2027.
  

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