# Buying a VEFA property in Luxembourg: buyer checklist Payment stages, deed annexes, completion guarantees, delivery and defects Canonical: [https://chathome.lu/en/insights/guide-vefa-buying-luxembourg](https://chathome.lu/en/insights/guide-vefa-buying-luxembourg) Published: 2026-08-09T16:54:26.592Z Updated: 2026-08-13T10:10:21.490Z Direct answer: before signing a Luxembourg VEFA, verify the notarised deed, plans and specification, delivery deadline, payment schedule and the exact completion or repayment guarantee. Statutory construction-payment caps reach 15% after foundations, 50% after the top slab and 95% at completion; the final 5% is due at handover and may be deposited if conformity is disputed. ## Key takeaways - Treat statutory percentages as construction-payment caps, not a universal deposit or full-price tax model. - Read the exact guarantee and identify whether land is sold separately. - Make plans, specifications, delivery and revisions part of the signed documentation. - Record all handover reservations in writing. ## Direct answer In a VEFA, the buyer acquires rights in the land and completed work progressively and pays as construction advances. Before signing, have the notary or a Luxembourg lawyer review the deed, payment schedule, delivery date, technical annexes and the exact completion guarantee. Do not apply ordinary 7% acquisition duties to the full advertised VEFA price without a verified land/construction split and VAT treatment. ## How the payment stages protect the buyer Luxembourg's [VEFA law](https://legilux.public.lu/eli/etat/leg/loi/1976/12/28/n1/jo) caps construction payments at 15% after foundations, proportionally up to 50% after the top slab, and 95% at completion. The final 5% is due at handover and may be deposited when conformity is disputed. These stage caps connect payment to visible construction progress, so the buyer should match every call for funds to the documented stage. The percentages concern the construction price; they are not a universal cash-deposit rule and do not by themselves calculate the tax treatment of the land-plus-building package. An optional reservation deposit may not exceed 2% of the provisional price. [Guichet](https://guichet.public.lu/en/citoyens/logement/acquisition/aspects-contractuels/acquerir-bien-a-construire.html) lists circumstances in which it must be refunded, including seller-caused non-conclusion and specified material differences between the reserved project and final contract. ## Worked example: checking a payment call For example, if a call for funds says the foundations are complete, verify that construction stage before paying the instalment tied to the 15% cap. Later calls must stay within the cumulative limits for the top slab and completion. This is a stage-control example, not a universal schedule for the land price, VAT or a separate seller. ## What the notarised deed and annexes should contain Guichet lists the land/construction owner, permit date and conditions, description and agreed completion state, price and payment terms, delivery deadline and completion guarantee. Annexes include façade, floor and section plans, a detailed technical/material specification and co-ownership rules where applicable. Compare every marketing promise with those signed documents. Record who may approve substitutions, how a change is priced, how delay is notified and which document controls if the brochure conflicts with the specification. ## Completion and repayment guarantees Subject to the statutory exception for a qualifying public-sector constructor, the deed must provide a guarantee of full completion or repayment if the contract is resolved for non-completion, and a contract may allow conversion between those forms. The official [ministerial response](https://wdocs-pub.chd.lu/docs/exped/0139/156/279560.pdf) shows why the precise wording and the seller's legal status matter. Do not describe the guarantee as blanket protection for every loss, delay, defect or amount paid. A separate [Justice Ministry response](https://wdocs-pub.chd.lu/docs/exped/0140/122/281227.pdf) explains that a separate entity selling the land share is not automatically required to provide the same specific reimbursement guarantee. Identify the seller of each component and what each guarantee actually covers. ## Price revision and project changes Guichet discusses a possible 2.5% application to instalments after an index increase, but the deed must state whether the price is revisable and how. It is not a universal automatic uplift. Ask for the formula, reference index, triggering event and maximum exposure in writing. ## Delivery, acceptance and defects Completion, key handover and buyer acceptance are distinct steps. Inspect the property, compare it with the plans/specification and place every reservation in a written acceptance report. The [Guichet defects guide](https://guichet.public.lu/en/citoyens/logement/construction-renovation-transformation/travaux/vice-construction.html) describes seller-builder liability for major and finishing works; these regimes are separate from the completion guarantee and depend on the work and acceptance date. Use the [ChatHome mortgage preparation tool](/en/financial-tools/mortgage/prepare) to list known costs, but obtain a VEFA-specific notary and lender calculation. Browse [new homes for sale](/en/buy) only with the land/construction split and VAT treatment visible. ## Signing checklist 1. Permit, plans, specification and co-ownership documents. 2. Land seller, construction seller and ownership-transfer stages. 3. Instalments matched to statutory milestones. 4. Exact completion/repayment guarantee and exclusions. 5. Delivery date, delay process and price-revision formula. 6. Written inspection and acceptance procedure. Legal information checked on 9 August 2026. Guichet's core VEFA guidance is older, so recheck the deed against current law before signing. ## Methodology The checklist separates statutory construction-payment stages, deed content, guarantee wording and post-completion defect regimes. It deliberately excludes unsupported full-price tax and deposit assumptions. ## Limitations VEFA tax treatment and protection depend on the land/construction structure, VAT, sellers, deed and guarantee. Obtain project-specific advice from the notary or a Luxembourg lawyer. ## Sources - Guichet, VEFA acquisition guidance, checked 9 August 2026 — https://guichet.public.lu/en/citoyens/logement/acquisition/aspects-contractuels/acquerir-bien-a-construire.html - Legilux, VEFA payment law — https://legilux.public.lu/eli/etat/leg/loi/1976/12/28/n1/jo - Luxembourg Parliament, ministerial response 7963 — https://wdocs-pub.chd.lu/docs/exped/0139/156/279560.pdf - Luxembourg Parliament, Justice Ministry response 8070 — https://wdocs-pub.chd.lu/docs/exped/0140/122/281227.pdf - Guichet, construction-defect guidance — https://guichet.public.lu/en/citoyens/logement/construction-renovation-transformation/travaux/vice-construction.html ## Frequently asked questions ### Can a VEFA deed change the statutory payment caps? The guide does not treat the caps as optional. Have the notary verify that each requested construction instalment matches the legal stage. ### Is the final 5% always a general holdback? No. It is linked to handover and may be deposited when conformity is disputed; it is not blanket leverage for unrelated issues. ### Does the completion guarantee cover everything? No. Coverage depends on its wording and may not automatically cover a separately sold land share, delay losses or defects.