Credit: Jazmin Campbell, Chronicle.lu
Luxembourg's Ministry of Finance has reported that the Chamber of Deputies (parliament) gave the green light to two bills concerning housing tax measures on Wednesday 25 June 2025.
The first bill (No. 8540) permanently increases the "Bëllegen Akt" tax credit for the acquisition of a home for personal use to €40,000. The second bill (No. 8547) sets out new procedures for benefiting from temporary housing tax benefits.
The ministry noted that, if the 30 June 2025 deadline is maintained, it will be sufficient for property buyers and sellers to register either a signed preliminary sales agreement or a reservation contract relating to a sale in future state of completion with the Registration Duties, Estates and VAT Authority (AED) by this date. The notarial deed must then be drawn up by 30 September 2025 at the latest.
The tax measures concerned by this bill are: a rental tax credit of €20,000 per individual; halving the taxable base for registration and transcription fees; accelerated depreciation to 6%; taxation of transfer profits at a quarter of the overall rate; exemption of capital gains in the case of transfers of properties used for social housing management or residential buildings achieving an A+ rating.
Luxembourg's Minister of Finance, Gilles Roth, commented: "This is good news, particularly for property buyers, many of whom are young. And also for the construction sector as a whole. It is clear that we will need to remain agile to be able to react if necessary. Together with the Chamber [of Deputies], we have made these adjustments in record time."
