"Booster fir de Wunnengsbau": the 7 measures of July 2026 and how far the thresholds reach the market

Direct answer: what is announced, what awaits the vote on the law (as of 24 August 2026)

The government presented on 16 July 2026 the "Booster fir de Wunnengsbau" package (press release from the Ministries of Finance and Housing, read in full; mirror on logement.public.lu verified on 20 August 2026). Seven measures, with two different announced application dates — and none is in force: the law has still not been voted as of 24 August 2026:

Where does the law stand, as of 24 August 2026: the Council of Government adopted on 24 July 2026 the two draft laws that carry the package — the "draft law amending the amended law of 30 July 2002 determining various tax measures intended to encourage the placing on the market and the acquisition of building land and residential buildings" and the "draft law implementing a temporary exemption from registration and transcription duties for existing constructions in the context of sales in the future state of completion". None of these measures is therefore in force today: they must still follow their course in the Chamber of Deputies. Concretely, if you sign now, the notary applies the law in force (Bëllegen Akt at €40,000), and the increase is then claimed from the AED once the law is voted.

The calculation of the cap: ordinary duties are 6% registration + 1% transcription, i.e. 7% of the price. €45,000 / 7% ≈ €642,857, rounded to "around €640,000" by the press release and to "around €643,000" by the press. For a couple: €90,000 / 7% ≈ €1,285,714, i.e. nearly €1.3 million. In all cases, at least €100 of duties remain payable.

Bëllegen Akt €45,000: what the new cap really changes

The tax credit on notarial deeds ("Bëllegen Akt") is raised from €40,000 to €45,000 per natural person for acquisitions for personal dwelling purposes, applicable from 16 July 2026 (press release; status as of 20 August 2026). Buyers whose deed is concluded between the announcement and the entry into force of the law will be able to claim the increase from the Administration de l'enregistrement, des domaines et de la TVA (AED).

Important detail: as of 20 August 2026, the dedicated Guichet page still shows a cap of €40,000 (page modified on 7 July 2025), and the law has not yet been published. The press release announces applicability from 16 July, the press speaks of retroactive application "once the law is approved". At the date of your deed, have the cap confirmed by the notary or the AED. Our dedicated page on the Bëllegen Akt explains how the credit works and the occupancy conditions; check with the notary or the AED the cap applicable on the day of the deed.

To check before counting on the full amount: the credit is capped per person and is consumed over successive acquisitions. If your duties on a purchase do not reach the total amount of the credit, the balance remains usable for other acquisitions until exhausted — but a credit already used on a previous purchase reduces what remains. The remaining balance can be consulted on MyGuichet.lu, and it is the notary who claims the credit during the deed (Guichet.lu, consulted on 24 August 2026).

What this means for the market, as of 20 August 2026: the cap excluding duties now covers a property of around €640,000 for a single buyer — see the data section for the share of the actual stock concerned.

The exemption from duties in off-plan sales: a three-year window

A temporary exemption from registration and transcription duties is introduced for natural persons who acquire off-plan a dwelling for main residence purposes whose construction is completed at 80% maximum at the time of acquisition: duties will only be due on the land value. The measure applies to deeds concluded from 16 July 2026 and for three years — a window that therefore runs until mid-2029.

As an indicative example, on a new apartment of €800,000 including €200,000 of land (allocation from the official example of the 3×6 depreciation), duties would fall from around €56,000 (7% of €800,000) to around €14,000 (7% of €200,000) before any credit — the share of land in the total value depends on the project. The guide to buying off-plan details the process of buying on plan.

Investors: the 3×6 depreciation and 8% VAT

The new accelerated depreciation regime "three times 6" allows 6% depreciation per year for 6 years when the depreciable base does not exceed €600,000 per building; above this threshold, a rate of 2% applies to the entire base, without time limit. Acquisitions made in 2026 can choose the old or the new regime; from 1 January 2027, the new regime is the only one applicable to new acquisitions, with previous regimes remaining applicable until their term.

Official example (Luxembourg Times, 16 July 2026): an apartment of €800,000, i.e. €200,000 of land and €600,000 of construction, allows a deduction of €36,000 per year for 6 years (6% of €600,000). The Minister of Finance specified that the measure targets affordable rental investment: above the threshold, the investor only benefits from normal depreciation of 2%. To estimate a net yield, integrate this regime with the other costs presented in our rental yield guide. These worked examples are general information, not tax, legal or investment advice: the real effect on your situation depends on your taxation and the project, and should be verified with your tax advisor, notary or the Administration des contributions directes.

The reduced VAT of 8% for the creation of rental housing with a social purpose will apply from the entry into force of the law (not yet voted as of 20 August 2026), without retroactive effect. Conditions (press release): maximum floor area of 120 m²; sale price per m² less than or equal to the median price published by the Observatoire de l'habitat according to region and size; rental yield limited to 4% of net invested capital; rental for at least ten years; rental to a certified tenant eligible by the Ministry of Housing.

Buyers: the interest subsidy at €300,000 and the access grant

The interest subsidy is strengthened: the maximum amount of the loan taken into account rises from €200,000 to €300,000 when at least one of the loan holders is aged 35 or younger (+€100,000). For all households, the general cap rises from €200,000 to €250,000, the increase per dependent child from €20,000 to €30,000, for a maximum cap of €370,000. The improvements benefit both new applicants and beneficiaries whose file is already being paid.

Example from the press release (as of 20 August 2026): a household with one dependent child and a net income of €79,000, benefiting from a subsidy of 1.5%, can now obtain up to €400.31 per month (+€133.43) thanks to the new "young buyer" cap of €330,000. Note: the maximum cap of €370,000 applies to the general regime; the examples in the press release for young buyers with children go up to €420,000 of cap (4 children).

In parallel, the press release announces the opening of the access grant — and the savings grant — to young buyers of affordable or moderately priced housing when at least one of the future owners is aged 35 or younger at the deed. This opening presupposes the entry into force of the law, which is not voted as of 24 August 2026; until now, these aids were reserved for buyers on the private market. The CSSF has also confirmed that the State guarantee linked to housing aids can be considered as equity by banks when granting the mortgage loan (Luxembourg Times, 16 July 2026).

To examine your situation, consult the housing aids simulator and the rental aid tool, then confirm the applicable caps with the ministry.

Citizen bond of €250 million and State off-plan programme

After the success of the Defence Bond, a citizen bond of €250 million will be launched to finance affordable housing, with interest exempt from the 20% final withholding tax — the launch is planned for early 2027. The final conditions (maturity, coupon) have not yet been announced.

On the public construction side, the State's off-plan acquisition programme is extended: after a first envelope of €480 million which made it possible to acquire or reserve 830 affordable homes, an additional envelope of €300 million is mobilised. The scheme is evolving towards partial acquisition of projects (for example three apartments out of ten), in order to unlock developer financing, and acquisition caps are now regionalised into six categories of municipalities (status as of 20 August 2026). For context, the increase in the tax credit by 3% (from €50,000 to €100,000) discussed at the tripartite will not take place: the European authorities responded negatively (Luxembourg Times).

Why only 26.2% of new builds below the cap? (chathome.lu data)

A practical question then remains: how many properties actually for sale fall below the new caps? We measured it on 20 August 2026 on our corpus (Firestore production, listing_search_versions/gr-policy-2026.3, active apartments for sale in Luxembourg, known prices):

Only 26.2% of new apartments fall below the cap of around €640,000 — i.e. 515 out of 1,962 new homes. That is less than for the whole market (39.0%, i.e. 2,404 out of 6,161 apartments): new homes are more expensive, not less. The median asking price is around €789,000 for a new build, compared with €669,000 for the rest of the stock; in €/m², the new median is €9,000/m² compared with €8,000/m², a premium of +12.5% (same method on both sides, n=1,747 new / n=3,672 others).

This result is explained first because the median for new builds (€789,000) exceeds the cap of €640,000: thus, more than half of new projects are positioned above the tax credit threshold. Geography also plays a role: the expensive central municipalities (Luxembourg, Strassen, Bertrange, Hesperange) concentrate new projects above the cap, which explains the very low shares of Bertrange (9%), Hesperange (3%) and Strassen (7%). Conversely, the southern and western municipalities, thanks to more moderate prices, achieve significantly higher shares — 75% in Dudelange, 40% in Diekirch, 34% in Esch-sur-Alzette. Consequently, the cap excluding duties mainly covers the lowest budgets in the new segment, and the south of the country concentrates most of the new stock below €640,000.

Under the "couple" cap of around €1.286 million, almost all new builds fall: 90.1% of the 1,962 new apartments. In other words, the €640,000 cap mainly benefits single buyers (or couples aiming for a small budget); for couples, the constraint shifts to the market for properties above €640,000 but below €1.3 million.

For young budgets, the reality is harsher: only 1.1% of all tracked apartments ask €300,000 or less (68 properties), and 0.5% of new builds (9 properties); below €400,000, 5.2% of all apartments and 2.0% of new builds. The new subsidised loan cap of €300,000 for under-35s therefore corresponds to a very narrow segment of the current stock.

What this changes for your decision this month

Three concrete situations, with the data above:

1. Young couple under 35 looking for a first home. The loan cap taken into account rises to €300,000 (+€30,000 per child) and the Bëllegen Akt at €45,000 per person covers a property up to around €640,000 excluding duties. But on the current stock, only 1.1% of apartments ask €300,000 or less — the subsidised new budget at €300,000 covers 9 new properties. The couple will either have to aim for older properties (the rest of the stock is about 1.7 times more often below €640,000: 45.0% vs 26.2%), or broaden the budget and use the tax credit on the part of the price beyond.

2. Buyer of a new apartment at the median (~€789,000). At this price, the single buyer pays 7% duties before credit, i.e. around €55,230, minus the credit of €45,000 ≈ €10,230 remaining; a couple that still has its full credit, i.e. €90,000 between them, covers almost all duties (minimum €100) — provided neither has already used their credit on a previous purchase, the remaining balance being consultable on MyGuichet.lu. In an off-plan sale completed at less than 80% at signing, duties only apply to the land (around €14,000 on the €800,000 example) — the three-year window (16 July 2026 → mid-2029) makes buying on plan significantly cheaper in acquisition costs.

3. Rental investor. The 3×6 regime (6% per year for 6 years on a base ≤ €600,000) improves the net yield of properties below the threshold; above, only normal depreciation of 2% applies to the entire base. For social projects, the 8% VAT reduces construction costs — but only upon entry into force of the law (not yet voted as of 20 August 2026) and under strict conditions (120 m² max., median price, yield ≤ 4%, rental ≥ 10 years, certified tenant).

To compare budgets, use the prices in Luxembourg and prices in Esch-sur-Alzette pages, the buy vs rent tool, the mortgage budget and the Klimabonus. Also compare the purchase prices of a first home and the cost of a loan, without assuming eligibility for the new measures before official confirmation.

What to watch next

The law has not yet been voted as of 24 August 2026, the two draft laws having been adopted by the Council of Government on 24 July 2026: its entry into force will trigger the 8% VAT and the access grant, and confirm the dates of measures 1, 2 and 6. On 1 January 2027, the 3×6 depreciation becomes the only regime applicable to new acquisitions. The citizen bond of €250 million is announced for early 2027. The Observatoire de l'habitat report on Q2 2026 is expected at the end of September (the Q1 report was published on 29 June 2026) — it will clarify the trend in transactions. This article will be updated at these key dates.