Frequently Asked Questions
IS there a state guarantee?
Are there any capital aid?
Of course yes! Under conditions, you can obtain financial assistance from the state. The property must be located in Luxembourg, you must be a first-time buyer and the accommodation must serve as your main residence for a minimum period. For further details, please see the list below.
This premium can be requested in the event of a purchase or construction of a property. Among the conditions, your accommodation must not exceed certain surface limits. The amount of aid will depend on your family situation at the time of the notarial deed as well as your income.
This premium corresponds to interest and bonuses on your savings account.
To obtain it, you must already have obtained the acquisition premium, have used 90% of your assets and have saved for 3 years on a savings account.
The purpose of this bonus is to help improve your home. To be eligible, your home must have been inhabited for at least 15 years (not necessarily by you). Surface area criteria apply and the amount of the premium depends on your family situation and your income.
Under specific financial income conditions, the state provides rental subsidies.
This subsidy applies if you have taken out a mortgage loan for your construction, acquisition, development or energy rehabilitation.
It will allow you to reduce the rate of your loan. Surface area criteria apply and the amount of the subsidy depends on your family situation and your income.
This interest relief applies if you have taken out a mortgage loan for your construction, acquisition or development. It can be combined with the interest subsidy (ceiling at 3% in total), depends on the number of children in your household and your income.
Complementary to the premium for the costs of architects and consulting engineers, this aid is conditional on the prior obtaining of the construction or improvement premium.
The state provides financial assistance for special arrangements for people with reduced mobility.
If you are a civil servant or a state employee, the state provides special additional help link to your
Reduction of recording and transcription fees (max €20,000) – Bëllegen akt
In the event of a transfer (change of ownership of a property), the state will generally levy 6% (registration) + 1% (transcription), i.e. 7% in total. You can, once in your life, benefit from a reduction of these costs up to a maximum of €20,000. To do this, you will have to commit to occupying the building within 2 years (if no work) to 4 years from the date of the deed. You will also have to commit to living there for a minimum of 2 years.
Reduced VAT rate (max €50,000)
The normal VAT rate is 17%, but you can benefit from a reduced rate of 3% for construction and renovation work relating to your main residence. The amount of the tax gain is capped at €50,000. In other words, 3% VAT can be applied to a maximum of €357,143 of work.
Please note that not all types of work are eligible.
The rate of 3% can be granted directly when issuing invoices if the request has been made in advance. If this is not the case, the request must be made a posteriori, on the basis of the invoices, and the administration will proceed with a refund.
Outstanding balance insurance
When you file your tax return, you are normally entitled to a deduction of €672 for special expenses. If you have taken out outstanding balance insurance paid as a single premium, this ceiling is increased. The increase depends on the age of the taxpayer and his family situation.
You can fully deduct the costs of registering the mortgage of your property as obtaining costs. Only one condition, not to live in the property at the time of payment of these costs.
Debt interest paid before the property is occupied is fully tax deductible as obtaining costs.
You can take out home savings with a bank. This product gives you access to a loan on favorable terms. You can also use the accumulated savings according to your needs. However, in all cases, the money will have to be used to finance work on your home. In addition, this product is deductible in the « special expenses » section of your tax return.
Social rental management
As an owner, if you decide to rent out a property in cooperation with the Ministry of Housing, you will benefit from a tax reduction of 50% on your rental income.
Let's Find Together The Place You Deserve!
Our activity covers the transaction and rental of real estate in the Grand-Ducal of Luxembourg. We are constantly looking for properties for our clients. Do not hesitate to contact us if you have a house, an apartment or a land to sale or to rent.