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States help for the purchase of a dwelling in Luxembourg

Did you know that in Luxembourg, you can benefit from states help for the acquisition of a home? To benefit from it, the property must be intended to become your principal residence. You will also need to reside there for a minimum of 2 years.
Below you will find the two main ones. Do not hesitate to visit the website of the Ministry of Housing for more information: https://logement.public.lu/fr/proprietaire.html

For existing properties or the already existing share of a building under construction (including land), the state will take 7% registration and transcription fees. On these fees, you can take advantage of the "bëllegen akt". It is a tax credit worth € 30,000 per purchaser. If you are a couple, the benefit will amount to € 60,000. In all cases, the state will charge a minimum of €100 in fees.
In practice, this means that you will only pay €100 in duties if the property you buy alone does not exceed €428,571. This amount will increase to €857,143 if you are 2 buyers.

For the remaining part to be built or for renovation work, you can benefit from a super reduced VAT rate of 3% instead of the standard rate of 17% (16% in 2023). The total amount of the benefit may not exceed € 50,000. This benefit is tied to the property and not to the buyers. It is therefore important to inquire about the remaining balance when you buy an existing property. Also be careful, not all building work is eligible. In case of renovation, the property must have been built for at least 10 years.
In a quantified way, in this year 2023, the standard rate is 16%, so you could benefit from a VAT at 3% on a maximum amount of building work of 384,615 € HTVA. If the normal rate was 17%, this envelope would increase to €357,143 excluding VAT.


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