{"id":16131,"date":"2026-08-12T10:00:00","date_gmt":"2026-08-12T08:00:00","guid":{"rendered":"https:\/\/www.athome.lu\/blog\/?p=16131"},"modified":"2026-08-13T09:35:07","modified_gmt":"2026-08-13T07:35:07","slug":"new-buildings-luxembourg","status":"publish","type":"post","link":"https:\/\/www.athome.lu\/blog\/en\/acheter\/immobilier-neuf-luxembourg\/","title":{"rendered":"New-build property in Luxembourg: a guide to buying off-plan in 2026"},"content":{"rendered":"

A purchase at New-build property in Luxembourg<\/strong> 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.<\/p>\n\n\n\n

New-build property in Luxembourg: some key figures<\/h3>\n\n\n\n
Indicator<\/th>First quarter of 2026<\/th><\/tr>
Sales of off-plan flats (VEFA)<\/td>207<\/strong><\/td><\/tr>
Change compared with the previous quarter<\/td>+38,9 %<\/strong><\/td><\/tr>
Year-on-year sales growth<\/td>-18,2 %<\/strong><\/td><\/tr>
Year-on-year change in the off-plan property price index<\/td>+0,9 %<\/strong><\/td><\/tr>
Average price per square metre for off-plan properties<\/td>\u20ac9,596 per square metre<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

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<\/strong> for flats currently under construction.<\/p>\n\n\n\n

Source: <\/strong>Housing Observatory \u2013 Residential property market in the first quarter of 2026<\/strong><\/a><\/p>\n\n\n\n

What is a VEFA off-plan property purchase in Luxembourg?<\/h2>\n\n\n\n

The VEFA<\/strong>, or off-plan sales, allows you to buy a property before it is completed.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Is 2026 the right time to buy a new-build property in Luxembourg?<\/h2>\n\n\n\n

The new-build market is showing signs of recovery, but activity remains below pre-crisis levels.<\/p>\n\n\n\n

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

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

As for prices, the index for flats under construction rose by just 0.9 % year-on-year<\/strong>. It has even fallen by 2.2 % for the quarter<\/strong>.<\/p>\n\n\n\n

So, there isn\u2019t one \u00abright time\u00bb that applies to all buyers. Your decision depends mainly on your budget and the project you\u2019ve chosen. Delivery times and the terms of the contract are also important.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

To find out more about them, see our article on new measures <\/a>for housing in Luxembourg.<\/p>\n\n\n\n

What are the advantages of a new-build property in Luxembourg?<\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

Does buying a new-build property mean there\u2019s less work to do after the purchase?<\/h3>\n\n\n\n

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.<\/p>\n\n\n\n

This does not mean that no adjustments will be necessary. Defects or areas requiring rework may become apparent upon delivery.<\/p>\n\n\n\n

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

Is it easier to assess the energy efficiency of a new-build property?<\/h3>\n\n\n\n

All new residential buildings must have a certificate <\/a>energy efficiency<\/strong>, also known as the Energiepass. This document provides information on the building\u2019s energy requirements and CO\u2082 emissions.<\/p>\n\n\n\n

The certificate courses range from A+ to I<\/strong>. This means you can factor energy performance into your comparison of different schemes.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Can you customise a property bought off-plan?<\/h3>\n\n\n\n

Buying off-plan can offer certain opportunities for customisation. However, these depend on the developer and the progress of the building works.<\/p>\n\n\n\n

Surfaces, fittings or finishes can sometimes be adapted. However, certain alterations will incur additional costs.<\/p>\n\n\n\n

Why not ask for a detailed list of the equipment included? You should also check the price of any optional extras before committing.<\/p>\n\n\n\n

What tax incentives apply to new-build property in Luxembourg in 2026?<\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

Device<\/td>Situation as at 12 August 2026<\/td><\/tr>
VAT at 3 %<\/strong><\/td>Applies to certain eligible works carried out on a main residence. The tax relief is capped at \u20ac50,000 per dwelling<\/strong>.<\/td><\/tr>
B\u00ebllegen Akt<\/strong><\/td>Guichet.lu currently displays \u20ac40,000 per buyer<\/strong>. The government has announced an increase to 45 000 \u20ac<\/strong>.<\/td><\/tr>
New off-plan property measure<\/strong><\/td>A temporary exemption on the construction portion has been announced for certain main residences completed at a maximum of 80 %.<\/td><\/tr>
Standard fees<\/strong><\/td>In the absence of any tax relief, registration and transcription fees normally amount to 7 %<\/strong>.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

How does the 3 % VAT rate work for a new-build property?<\/h3>\n\n\n\n

The super-reduced rate of VAT <\/a>at 3 %<\/strong> may apply to certain works carried out on a main residence.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

The total tax relief is capped at \u20ac50,000 per dwelling<\/strong>. This may take the form of the reduced rate being applied directly or a refund.<\/p>\n\n\n\n

To qualify for the full benefit, the property must be used as the main residence for at least two years.<\/p>\n\n\n\n

Does the B\u00ebllegen Akt apply to a property under construction?<\/h3>\n\n\n\n

Yes. The B\u00ebllegen Akt may relate to a property intended as a main residence, including a building under construction.<\/p>\n\n\n\n

As at 12 August 2026, Guichet.lu still shows a tax credit of \u20ac40,000 per buyer<\/strong>. The government has, however, announced that it is moving to \u20ac45,000 per person<\/strong>.<\/p>\n\n\n\n

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

Your solicitor will be able to confirm the applicable amount on the day the deed is signed.<\/p>\n\n\n\n

To plan for all these costs, see our guide to notary costs <\/a>in Luxembourg in 2026.<\/p>\n\n\n\n

What changes will the newly announced tax exemption for off-plan property purchases bring?<\/h3>\n\n\n\n

The government <\/a>has announced a new tax exemption for certain off-plan property purchases intended as a main residence.<\/p>\n\n\n\n

When construction is completed at 80 % maximum<\/strong>, 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.<\/p>\n\n\n\n

The government is planning to introduce this measure for acquisitions completed on or after 16 July 2026<\/strong>, for three years.<\/p>\n\n\n\n

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

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.<\/p>\n\n\n\n

How does an off-plan property purchase work in Luxembourg?<\/h2>\n\n\n\n

A purchase off-plan involves several stages. Take the time to check each document before moving on to the next one.<\/p>\n\n\n\n

1. Set your budget before booking<\/h3>\n\n\n\n

Start by working out your overall budget. This should include not only the price of the property but also the purchase costs.<\/p>\n\n\n\n

Also add any optional extras and credit-related charges. Finally, allow for a margin to cover the installation.<\/p>\n\n\n\n

This first step allows you to focus solely on programmes that are within your budget.<\/p>\n\n\n\n

2. Sign a booking contract, if required<\/h3>\n\n\n\n

The reservation contract<\/a> allows the developer to reserve a property in your name. However, this step is not compulsory.<\/p>\n\n\n\n

If a security deposit is required, the amount must not exceed 2 % of the estimated price<\/strong>.<\/p>\n\n\n\n

The contract must be read carefully. In particular, check the agreed price, the property\u2019s specifications and the conditions for the return of the deposit.<\/p>\n\n\n\n

3. Sign the deed of sale at the solicitor\u2019s office<\/h3>\n\n\n\n

The final contract for a property to be built must be concluded by notarial deed<\/strong>. The necessary planning permission must also have been granted.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

In the case of an off-plan sale, it must also state the guarantee of full completion of the building<\/strong>.<\/p>\n\n\n\n

The plans and the descriptive note are among the essential documents. The co-ownership regulations must also be attached where applicable.<\/p>\n\n\n\n

4. Pay as the work progresses<\/h3>\n\n\n\n

With an off-plan purchase, you do not pay for the property in full upon signing the contract.<\/p>\n\n\n\n

Payments are made in instalments, in line with the progress of the building work. You also become the owner as the work progresses.<\/p>\n\n\n\n

Keep all requests for funds and documents sent during the project.<\/p>\n\n\n\n

5. Carry out the handover of the property and note any reservations<\/h3>\n\n\n\n

Handover is a crucial stage. Take the time to check the property and the facilities specified in the contract.<\/p>\n\n\n\n

Please note down in detail any defects found at the time of delivery. A written acknowledgement setting out the reservations<\/strong> is particularly important.<\/p>\n\n\n\n

Photographs and documents can also help to illustrate the problems identified.<\/p>\n\n\n\n

What should you check before signing a contract for an off-plan property?<\/h2>\n\n\n\n

Before signing, check both the project documents and the property itself.<\/p>\n\n\n\n

Here are the main points to check:<\/p>\n\n\n\n