Last chance to benefit from housing subsidies in Luxembourg

In order to anticipate a large influx of applications between now and the end of June, the Minister of Finance has introduced a degree of flexibility: if the deadline of 30 June 2025 remains in force, it will be sufficient for purchasers to have registered with the Administration of Registration, Domains and VAT (AED), or a signed preliminary sales agreementa reservation contract for a property in a future state of completion signed on that date.

The notarial deed formalising the purchase can then be signed between the 1 July and 30 September 2025. This extra time is intended to give banks and notaries the time they need to process the many requests from buyers wishing to take advantage of the tax breaks.

✅ What types of aid are involved?

• Tax credit for rental investment 20,000 per person for investment in rental accommodation.
• Halving the tax base Registration and transcription fees.
• Accelerated depreciation at 6 % for property investments.
• Reduced taxation of profits from disposals at a quarter of the overall rate.
• Exemption from capital gains tax A+ level: in the event of transfer to buildings intended for social rental management or buildings achieving A+ level.

The "Bëllegen Akt" tax credit for the purchase of a principal residence is not subject to this deadline. It will remain maintained at 40,000 euros per person beyond 30 June 2025.

🏡 How can atHome.lu help you?

At atHome.lu, we can help you at every stage of your property project. Use our platform to find the property that suits your needs, and take advantage of tax incentives before they expire.