The Luxembourg government has announced a series of new measures designed to reduce the cost of homeownership and support the housing market. Dubbed "Booster fir de Wunnengsbau" (Boost for Housing Construction), this program was presented by the Minister of Housing and Spatial Planning, Claude Meisch, and the Minister of Finance, Gilles Roth.

The objective is threefold: to boost housing construction, facilitate access to homeownership, and increase the supply of affordable housing. Here are the main measures to remember:

1. Exemption from registration fees for certain off-plan purchases (VEFA)
Purchasers of a property intended to become their primary residence will be able to benefit from a temporary reduction in registration and transcription fees.

For off-plan sales (VEFA), when the property is 80% complete at the time of signing, the fees will be calculated solely on the value of the land, and not on the total price of the property.

This measure applies to deeds signed from July 16, 2026, onwards and will be in effect for three years.

2. The "Bëllegen Akt" tax credit increased to €45,000 per person
The "Bëllegen Akt" tax credit is increased from €40,000 to €45,000 per person for the purchase of a primary residence.

Thanks to this increase, it will be possible to purchase a property worth approximately €640,000 without paying registration fees. This measure has been applicable since July 16, 2026.

3. Reduced VAT rate of 8% for certain social housing units
A reduced VAT rate of 8% will be applied to social housing units that meet several criteria, including:

a maximum surface area of ​​120 m²;

a sale price per m² in accordance with the ceilings set by the Housing Observatory;

Rental yield limited to 4% of the invested capital;

a rental period of at least 10 years;

rental to a beneficiary recognized as eligible by the Ministry of Housing and Territorial Development.

4. Accelerated depreciation to encourage rental investment
To stimulate investment in rental housing, a new accelerated depreciation scheme is being introduced.

Investors will be able to benefit from a 6% depreciation rate for six years for properties whose depreciable base does not exceed €600,000.

Beyond this ceiling, a rate of 2% will apply to the entire depreciable base, without any time limit.

For acquisitions made in 2026, taxpayers will have the choice between the old and new schemes. From January 1, 2027, only the new provisions will apply to future purchases.

5. Enhanced Housing Assistance
The government is also increasing several forms of assistance designed to facilitate access to housing:

For first-time homebuyers: the maximum loan amount taken into account for calculating the tax reduction increases from €200,000 to €300,000.
For all households: the maximum subsidized loan is raised from €200,000 to €250,000, and the supplement per child increases from €20,000 to €30,000.
Young people under 35 who purchase affordable or low-rent housing can now benefit from the homeownership grant as well as the savings bonus.
These new measures reflect the government's commitment to facilitating access to homeownership, supporting the construction sector, and developing a more affordable housing supply in Luxembourg.
E