New-build property in Luxembourg: a guide to buying off-plan in 2026

A purchase at New-build property in Luxembourg is often carried out on an off-plan basis, before construction is complete. In 2026, this market remains less active than it was before the crisis. However, sales are up compared with the end of 2025. To ensure a stress-free purchase, it is important to compare the price, financing options, financial assistance and guarantees set out in the contract.

New-build property in Luxembourg: some key figures

The average price per square metre has fallen year-on-year. However, this statistic is heavily influenced by the properties that have actually been sold. The STATEC hedonic index takes greater account of factors relating to location and property characteristics. It shows an increase of 0.9 % year-on-year for flats currently under construction.

Source: Housing Observatory – Residential property market in the first quarter of 2026

What is a VEFA off-plan property purchase in Luxembourg?

The VEFA, or off-plan sales, allows you to buy a property before it is completed.

The seller immediately transfers their rights to the land to the buyer. The buyer then becomes the owner of the building as it is constructed. Payments are also made in line with the progress of the work.

A VEFA therefore generally refers to a flat or house purchased off-plan. The property may still be to be built or may already be under construction.

This type of purchase is subject to specific rules. These are designed, in particular, to provide a framework for the contract, payments and the completion of the property.

Is 2026 the right time to buy a new-build property in Luxembourg?

The new-build market is showing signs of recovery, but activity remains below pre-crisis levels.

In the first quarter of 2026, 207 off-plan flats have been sold. That is 38.9 % more than in the previous quarter. However, the volume remains lower by 18.2 1Q3Q compared with the first quarter of 2025.

Before the property market slowdown, the situation was very different. Between 2017 and 2021, nearly 650 off-plan properties were sold on average in the first quarter. The segment therefore remains some way off its historical pace.

As for prices, the index for flats under construction rose by just 0.9 % year-on-year. It has even fallen by 2.2 % for the quarter.

So, there isn’t one «right time» that applies to all buyers. Your decision depends mainly on your budget and the project you’ve chosen. Delivery times and the terms of the contract are also important.

Furthermore, new tax measures were announced in July 2026. These could reduce certain costs for buyers of a main residence purchased off-plan. However, their status must be verified before the contract is signed.

To find out more about them, see our article on new measures for housing in Luxembourg.

What are the advantages of a new-build property in Luxembourg?

Above all, a new-build property offers greater transparency regarding the building work, modern fittings and a specific contractual framework. However, every development is different. It is therefore important to check exactly what is included in the price.

Does buying a new-build property mean there’s less work to do after the purchase?

A new-build property is normally handed over with the fittings and finishes specified in the contract. This means you can avoid having to carry out a complete refurbishment as soon as you move in.

This does not mean that no adjustments will be necessary. Defects or areas requiring rework may become apparent upon delivery.

For this reason, you should pay close attention to the handover of the property. Any reservations must be clearly set out in writing.

Is it easier to assess the energy efficiency of a new-build property?

All new residential buildings must have a certificate energy efficiency, also known as the Energiepass. This document provides information on the building’s energy requirements and CO₂ emissions.

The certificate courses range from A+ to I. This means you can factor energy performance into your comparison of different schemes.

In the case of a new build, a calculation reflecting the building as actually constructed must also be drawn up once the work has been completed.

Can you customise a property bought off-plan?

Buying off-plan can offer certain opportunities for customisation. However, these depend on the developer and the progress of the building works.

Surfaces, fittings or finishes can sometimes be adapted. However, certain alterations will incur additional costs.

Why not ask for a detailed list of the equipment included? You should also check the price of any optional extras before committing.

What tax incentives apply to new-build property in Luxembourg in 2026?

There are several schemes that can help reduce the cost of buying a new property to serve as your main residence. However, the conditions for each scheme vary.

How does the 3 % VAT rate work for a new-build property?

The super-reduced rate of VAT at 3 % may apply to certain works carried out on a main residence.

The benefit does not, therefore, automatically apply to the full price of each new flat. The works must comply with the conditions laid down by the Registration, Property and VAT Authority.

The total tax relief is capped at €50,000 per dwelling. This may take the form of the reduced rate being applied directly or a refund.

To qualify for the full benefit, the property must be used as the main residence for at least two years.

Does the Bëllegen Akt apply to a property under construction?

Yes. The Bëllegen Akt may relate to a property intended as a main residence, including a building under construction.

As at 12 August 2026, Guichet.lu still shows a tax credit of €40,000 per buyer. The government has, however, announced that it is moving to €45,000 per person.

The Governing Council approved the relevant bills on 24 July 2026. This legislative process must therefore be taken into account before the new amount can be regarded as definitively applicable.

Your solicitor will be able to confirm the applicable amount on the day the deed is signed.

To plan for all these costs, see our guide to notary costs in Luxembourg in 2026.

What changes will the newly announced tax exemption for off-plan property purchases bring?

The government has announced a new tax exemption for certain off-plan property purchases intended as a main residence.

When construction is completed at 80 % maximum, the duties would be calculated solely on the value of the land. The construction element would therefore be temporarily exempt from registration and transcription duties.

The government is planning to introduce this measure for acquisitions completed on or after 16 July 2026, for three years.

However, as at 12 August 2026, the measure is still going through the legislative process. The Governing Council approved the bill on 24 July.

People who sign up during this transitional period may apply for the benefit after it comes into force. The government plans to submit eligible applications to the AED.

How does an off-plan property purchase work in Luxembourg?

A purchase off-plan involves several stages. Take the time to check each document before moving on to the next one.

1. Set your budget before booking

Start by working out your overall budget. This should include not only the price of the property but also the purchase costs.

Also add any optional extras and credit-related charges. Finally, allow for a margin to cover the installation.

This first step allows you to focus solely on programmes that are within your budget.

2. Sign a booking contract, if required

The reservation contract allows the developer to reserve a property in your name. However, this step is not compulsory.

If a security deposit is required, the amount must not exceed 2 % of the estimated price.

The contract must be read carefully. In particular, check the agreed price, the property’s specifications and the conditions for the return of the deposit.

3. Sign the deed of sale at the solicitor’s office

The final contract for a property to be built must be concluded by notarial deed. The necessary planning permission must also have been granted.

The contract specifies, in particular, the price and the terms of payment. It also sets out the delivery deadline and the expected stage of completion.

In the case of an off-plan sale, it must also state the guarantee of full completion of the building.

The plans and the descriptive note are among the essential documents. The co-ownership regulations must also be attached where applicable.

4. Pay as the work progresses

With an off-plan purchase, you do not pay for the property in full upon signing the contract.

Payments are made in instalments, in line with the progress of the building work. You also become the owner as the work progresses.

Keep all requests for funds and documents sent during the project.

5. Carry out the handover of the property and note any reservations

Handover is a crucial stage. Take the time to check the property and the facilities specified in the contract.

Please note down in detail any defects found at the time of delivery. A written acknowledgement setting out the reservations is particularly important.

Photographs and documents can also help to illustrate the problems identified.

What should you check before signing a contract for an off-plan property?

Before signing, check both the project documents and the property itself.

Here are the main points to check:

• the administrative authorisations for the project; ;
• detailed floor plans of the property; ;
• the floor area and layout of the rooms; ;
• the specifications and the materials to be used; ;
• the equipment included in the price; ;
• the price of any options; ;
• payment terms; ;
• the delivery date or delivery time; ;
• the guarantee of full completion; ;
• the rules governing co-ownership; ;
• any estimated costs; ;
• the clauses relating to a price review; ;
• your financing and the terms set out by the bank.

One point deserves special attention: the price review.

Guichet.lu points out that a rise in the index may lead to an increase in 2.5 % on the payment instalments. The contract must specify whether the price is subject to review and, if so, under what terms.

So, don’t just go by the price quoted in the advert. Check what the contract covers right up to delivery.

How can you finance a new-build property in Luxembourg in 2026?

You must arrange your financing before making a firm booking for your property. This will enable you to find out your borrowing capacity and the monthly repayment your budget can cope with.

Visit August 2026, atHomeFinance has published the following indicative mortgage rates in Luxembourg:

These rates provide an overview of the financing options available in Luxembourg. However, they do not constitute a guaranteed loan offer. The rate offered depends, amongst other things, on your profile, your deposit and the term of the loan.

The amount borrowed also plays a part. The same applies to your financial situation and the details of the property project.

Before booking your new accommodation, you can Simulate your mortgage with atHomeFinance. You’ll receive an initial estimate of your borrowing capacity, your monthly repayments and the costs associated with the loan.

An atHomeFinance broker can then compare the solutions offered by several partner banks. This allows you to consider the various options before committing.

What risks should you be aware of when buying a property off-plan?

Off-plan sales provide a specific legal framework. However, buying a property before it is completed also requires more forward planning.

The first risk relates to the timetable. A property development project may experience delays in construction or handover.

Next, the final price warrants particular attention. A review clause may alter certain outstanding amounts.

Finally, defects may become apparent at the time of handover. It is therefore essential to inspect the property before accepting the handover without reservation.

The guarantee of full completion The provision set out in the deed also constitutes an important safeguard. It must be included in a VEFA contract.

If you notice any defects, please report them promptly. Guichet.lu recommends, in particular, that you set out your reservations in writing at the time of receipt.

How can atHome help you find a new home?

atHome allows you to compare property developments new available in Luxembourg and the Greater Region. This means you can search for a project based on your location, budget and requirements.

At the same time, atHomeFinance can help you organise your financing. This means you can continue your search with a clearer picture of your budget.

Frequently Asked Questions about New-Build Property in Luxembourg

Does a pre-sale booking contract oblige me to buy the property?

No. Guichet.lu states that the person who has reserved the property is never obliged to purchase it. However, withdrawing from the transaction may affect the security deposit. This may be awarded to the seller by way of compensation. The contract must therefore be read carefully before signing. The deposit requested may not exceed 2 % of the estimated price.

What happens if the final price is much higher than the advertised price?

The deposit may be refunded if the final contract differs significantly from the booking contract. Guichet.lu specifically mentions a final price that is more than 5 % compared with the initial forecasts. There may also be a significant difference in the equipment provided. However, the specific terms of the signed contract must be examined.

How long do I have to move in under the Bëllegen Akt when buying a property off-plan?

For a building currently under construction, Guichet.lu currently estimates a timeframe of four years to take possession of the property. This period begins on the date of the notarial deed. Thereafter, the owner must occupy the property personally and continuously for at least two years. In certain situations, an extension of the occupancy period may be requested from the AED.

Is the 3 % VAT rate applied automatically to a new flat?

No. The 3 % VAT rate is not automatically applied to the full amount of every new purchase. It applies to eligible works and transactions in accordance with the AED rules. In particular, the property must be used as the owner’s main residence. The total tax relief is capped at €50,000 per dwelling.

What should I do if I notice any faults on delivery?

Any defects found must be accurately documented at the time of handover. Guichet.lu recommends a written handover report detailing all the defects identified. Photographs may also be included in the file. In the event of a problem, it is best to report the defects to the relevant professional as soon as possible and to keep all written evidence.