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More support for buyers. More momentum for new construction. More affordable housing.
The government
has presented a new package of measures intended to give housing construction in Luxembourg fresh momentum.
With these measures, the government aims to:
- enable more people to access home ownership,
- get housing construction moving again,
- activate private investment,
- significantly increase the supply of affordable housing,and get the housing market moving again after the difficult years.
The housing construction booster means:
A higher “Bëllegen Akt tax credit for homebuyers
- Now 45,000 euros per person
- +50% compared with 2023
- No registration duties up to a purchase price of 643,000 euros
- just under 1.3 million euros for a couple
Lower registration duties when buying homes off-plan
- 0% registration duties on the construction portion up to a construction progress of 80%.>
- Registration duties only on the land
- And the 45,000-euro “Bëllegen Akt” tax credit applies
- Depending on the case, therefore no more registration duties for the homebuyer
New accelerated depreciation for 2027 – according to the 3x6 rule
- 6% over 6 years
- With a ceiling of 600,000 euros per dwelling
- For 2026, a choice between the new or the old regime
Prime d’accession also for young buyers up to 35 years old of affordable housing
- Young buyers of affordable or moderately priced housing can now also benefit from the Prime d’accession and
- the Prime d’épargne.
More interest rate subsidy on a mortgage loan
For young first-time buyers:
- The maximum loan amount used to calculate the interest-rate subsidy is increased from €200,000 to €300,000.
For all households:
- The maximum subsidisable loan amount is increased from €200,000 to €250,000.
- The amount per child increases from €20,000 to €30,000.
New 8% VAT for investors who buy social rental housing
- For apartments up to 120 m²,
- Purchase price must not exceed the regional median price
- Rent must be limited to 4% of the invested capital,
- Commitment to rent to certified tenants for at least 10 years.
New Housing Bond – a new citizen bond
- A government bond of 250 million euros
- To mobilise private capital
- No withholding tax for people on the interest
State purchase of additional off-plan homes (VEFA)
- An additional 300 million euros
- For more affordable housing
- The state can now also take over parts of projects
- The criteria for purchasing building land are being adapted to the reality of the market.
For more information: https://logement.public.lu/fr/actualites/2026/07/17-booster-wunnengsbau.html