What financial assistance is available to renovate your home?

Improving your home involves a number of risks, not least financial. Keep a close eye on your expenditure to avoid overspending, and don't overlook the many government grants available.

There are three types of support for renovation: direct capital support, support for sustainable housing and indirect support in the form of tax benefits. 

Direct capital grants

The main direct capital aid is the bonus for improving old homes. It is granted for work carried out to improve the habitability, health and safety of older homes. It corresponds to a maximum of 40% of the cost of the work. The amount is set according to income and family situation.

There are two conditions. You must live in the property as your principal residence on a permanent basis and not be the owner or usufructuary of another property, either in Luxembourg or abroad. The work must be carried out in a property that was first occupied more than 10 years ago.

Support for sustainable housing

State aid (Klimabonus), interest subsidies and a government guarantee for climate loans, as well as a reduced rate of VAT, are available if you are planning to improve the sustainable energy performance of your home. They apply to the sustainable energy upgrading of homes more than 10 years old (insulation work, window replacement, controlled ventilation) and to the installation of technical systems that make the most of renewable energy sources (solar thermal or photovoltaic systems, heat pumps, wood-fired boilers, heating networks and/or connection to a heating network). To help you find your way around, the Klima Agence website has set up a aid simulator and a presentation of the different support programmes for sustainable housing and mobility.

 
Indirect aid

There are two types of indirect aid. The first concerns the super-reduced VAT rate. The State grants a reduced rate of 3% for the renovation of a dwelling intended for use as a principal residence. This tax concession may not exceed €50,000 per home, and not all work qualifies for the reduced rate. This is the case for fitted kitchens, special technical equipment such as alarms, interior blinds and curtains, and landscaping.

You can deduct interest charges and other renovation costs from your tax bill of your home, provided you do not occupy it for the duration of the work.

Our experts are on hand to advise you on your project. Make an appointment now! ing.lu/rdv-renover

To find out more about credits for energy renovations, go to ing.lu/renover

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