# Rental investment: understand the announced 3×6 depreciation threshold

Compare deductions from a documented building-only depreciable base. The July announcement is a scenario, not the rule currently applied to a tax return.

[Rental investment: understand the announced 3×6 depreciation threshold](https://chathome.lu/en/insights/amortissement-3x6-investissement-locatif)
Sources checked: 2026-10-14

Announced proposal — subject to enactment

## Key takeaways in 30 seconds

- 3 × 6: 6% for 6 years when the building base is at most €600,000.
- Announced on 2026-07-16: an option for acquisitions in 2026 and the sole regime for new acquisitions from 2027, subject to legislation. Above a base of €600,000, the announcement applies 2% to the entire base, not just the excess.
- Ordinary rate: 2%. A qualifying 4% rate is limited to 2 properties over the taxpayer’s lifetime, with completion less than 5 years before the start of the tax year. Special historical regimes need separate checking.

## Use the building base, not the asking price

Start from the documented depreciable acquisition or construction cost, excluding land. The tax base may include qualifying acquisition costs. The calculator accepts that base directly; it does not infer it from a listing or assume a land share. Confirm completion, acquisition date and any historical regime before choosing the current comparator.

## Read the threshold as a whole-base rule

The announced rule is not a higher rate on the first slice of a larger investment. The examples on both sides of the threshold show the annual deduction and total over full years. The qualifying current comparison changes rate after its illustrated eligibility period; it does not extend the accelerated current rate indefinitely.

## A deduction is not cash income

A deduction reduces taxable rental income. Interest and costs borne by the owner must be considered before translating it into tax savings. The optional constant-rate illustration excludes progressive brackets, other income and loss offsets. It is a comparison, not a tax return, and cannot turn a negative cash-flow investment into a profitable one by adding depreciation as cash.

## Worked examples

Building base entered directly: no assumed land percentage. A deduction reduces taxable income, not tax euro for euro. Full-year illustrations omit prorating, expenses and special historical regimes. The qualifying current column assumes 5 eligible years at 4%, then 2% for the last year; actual eligibility depends on completion, acquisition date and the lifetime property limit.

| Building-only depreciable base, excluding land | Current calculation — Annual deduction | Qualifying current regime — Annual deduction | Announced proposal — subject to enactment — Annual deduction | Total deduction over 6 full years | Potential difference / Current calculation | Potential difference / Qualifying current regime |
| --- | --- | --- | --- | --- | --- | --- |
| €400,000.00 | €8,000.00 | €16,000.00 | €24,000.00 | €144,000.00 | €96,000.00 | €56,000.00 |
| €590,000.00 | €11,800.00 | €23,600.00 | €35,400.00 | €212,400.00 | €141,600.00 | €82,600.00 |
| €600,000.00 | €12,000.00 | €24,000.00 | €36,000.00 | €216,000.00 | €144,000.00 | €84,000.00 |
| €610,000.00 | €12,200.00 | €24,400.00 | €12,200.00 | €73,200.00 | €0.00 | -€61,000.00 |

Enter both optional values to illustrate tax reductions. Income is after deductible expenses and interest, before depreciation; it is assumed constant each year. Deductions reduce taxable income, not cash costs. Progressive brackets, loss carryforwards, credits and other income are not modelled; this is not a tax-return calculation.

[Open the full tool and methodology](https://chathome.lu/en/financial-tools/investors/amortissement-3x6)

## Frequently asked questions

### Which records determine the current regime?

Use completion and acquisition records to establish the current depreciation treatment, including any special historical regime.

### Does this calculate my personal tax saving?

The comparison illustrates the government announcement. It does not elect a regime or calculate a personal tax liability.

## Official sources

- [ACD — L.I.R. 106](https://impotsdirects.public.lu/fr/az/l/logem_loc.html)
- [Gouvernement — 16/07/2026](https://gouvernement.lu/fr/actualites/toutes_actualites/communiques/2026/07-juillet/16-meisch-roth-booster-wunnengsbau2.html)
- [Chambre des Députés — 8806](https://www.chd.lu/fr/dossier/8806)

[Browse current homes](https://chathome.lu/en/buy)