Luxembourg Housing Tax Reliefs and Buyer Support Since 2024: Active vs Expired in 2026

This is a current (2026) guide to the housing tax reliefs and buyer-support measures Luxembourg introduced since 1 January 2024 — the paquet de mesures en vue de la relance du marché du logement (law of 22 May 2024), backdated to the start of 2024. Several measures were deliberately temporary and have since expired; two of the most valuable were made permanent. Every status below reflects the position as of July 2026, with what each measure is worth, who qualifies, the dates it applied, and whether it is still available.

At a glance: what is still active and what expired

*These temporary reliefs ran to 30 June 2025; a deed signed by 30 September 2025 still qualified if the reservation or compromis contract was registered with the tax authority by 30 June 2025.

If you are buying your own home: the Bëllegen Akt credit (active, permanent)

The "Bëllegen Akt" is a tax credit that offsets the registration and transcription duties — 6% + 1% = 7% of the price — that you owe when you buy a home to live in. It applies to those duties only; it does not cover notary fees or other acquisition costs.

• The package temporarily raised the ceiling from €30,000 to €40,000 per buyer for deeds signed from 1 January 2024, later extended to 30 June 2025.
• It was then made permanent by the law of 3 July 2025: €40,000 per person, up to €80,000 for a couple who each acquire a share, for deeds from 1 July 2025 onward. A minimum of €100 in duties is always retained.
• Who qualifies: you must occupy the home as your main residence within 2 years (4 years for building land) and keep it as your main home for a continuous minimum of 2 years.

Because €40,000 of credit cancels the 7% duty on a price up to about €571,000 (single) — and €80,000 does so up to about €1,142,000 (a couple) — many first purchases owe little or no registration duty, depending on the price and your circumstances. Status: active and permanent.

How the credit works — a worked example

Take an illustrative €600,000 apartment bought as a main home. The 7% duties come to €42,000. A single buyer's €40,000 credit cuts that to €2,000; a couple, each acquiring half, pool an €80,000 credit and therefore pay only the €100 minimum. The credit is thus worth tens of thousands of euros on a typical purchase — though notary fees (roughly 1–2%) sit on top and are not covered. For context, chathome.lu currently lists a median asking price of €699,000 across its 5,549 active apartments for sale (computed 2026-07-16); these are asking prices for the platform's current for-sale mix and run higher than achieved transaction prices, so treat them as an upper-bound anchor, not a valuation.

A second acquisition relief that has expired: the 50% duty-base reduction

Separately from the Bëllegen Akt credit, the package temporarily halved the taxable base on which the 7% registration and transcription duties are calculated — a 50% reduction of the base — for property bought as a main residence or to let to a tenant. It applied to deeds signed from 1 October 2024 to 30 June 2025 (with the 30 September 2025 transitional), under circulaire n°825. Because it cut the base rather than granting a fixed credit, it was especially valuable to investors, who do not get the €40,000 main-residence credit, and to buyers above the credit ceiling. For example, an investor buying a €600,000 flat to let owed €42,000 in duties; halving the base to €300,000 cut that to €21,000 — a €21,000 saving while it lasted. Status: expired.

If you were buying to rent: two reliefs that have expired

The 2024 package tried to pull investors back into new-build (VEFA) supply. Both headline investor reliefs were temporary and, after being prolonged, are now gone:

• A new €20,000 Bëllegen Akt credit on registration/transcription duties for property bought to let to a tenant — €20,000 per investor. It applied to deeds from 2024 and was extended to 30 June 2025 (with the 30 September 2025 transitional for pre-registered contracts). It has since expired. The exact letting conditions (minimum lease term and the delay within which the home must be rented) are set by the law of 22 May 2024. Status: expired.
• Accelerated depreciation on new-build rental housing raised to 6% a year for 6 years, capped at €250,000 of depreciation per year, for units acted from 2024 and likewise extended to 30 June 2025. Status: expired. The permanent regime remains: a 4% accelerated rate for dwellings completed less than five years ago (then 2%), plus a special real-estate allowance of 1% of the depreciation base, capped at €10,000 a year. Those permanent reliefs are still available.

If you are selling: the quarter-rate capital-gains window has closed

Normally, a taxable property capital gain — on a second home or investment, since a main-residence sale is already exempt — held more than five years is taxed at half your global rate, up to roughly 21%. The package temporarily cut this to a quarter of the global rate: 10.5% in the top bracket, per the Administration des contributions directes.

• In force: gains on disposals from 1 January 2024 to 30 June 2025; a notarial deed signed by 30 September 2025 still qualified only where a reservation or compromis contract had been registered with the tax authority by 30 June 2025.
• A worked example: on a €150,000 taxable gain, the temporary 10.5% rate meant €15,750 of tax; under the normal half-rate that same gain could cost up to about €31,500. Because the window closed, a 2026 seller reverts to the half-rate — so the relief roughly halved the bill only while it lasted. Status: expired.

A related, time-limited relief let sellers defer (immunise) a gain reinvested into social-rental-managed housing or energy-class A+ homes.

If you own and have a mortgage: interest deduction was made more generous (active)

The reform raised how much mortgage (debit) interest you can deduct on your main residence — and, importantly, the ceiling now moves with the age of the home, counted from the year the dwelling's rental value is first set (roughly, when it becomes available). This replaced the old flat €2,000 / €1,500 / €1,000 per person. From tax year 2024 the per-person ceiling is:

• the year the rental value is first set and the following year → fully deductible, no ceiling;
• the next four years → €4,000 per person;
• the following five years → €3,000 per person;
• thereafter → €2,000 per person.

Ceilings are per person in the household (doubled for a jointly taxed couple, plus each child). Crucially, this is a moving schedule, not a permanent bracket: a home whose rental value was first set in 2023 is uncapped for 2023–2024, then drops to the €4,000 band from 2025 — so for tax year 2026 it is capped at €4,000 per person, not unlimited. For example, a couple whose new flat's rental value was set in 2024 can deduct all their interest — say €18,000 — for 2024 and 2025, but from 2026 their deduction is capped at €4,000 each (€8,000 together). Status: active (structural).

If you let a home affordably: the 90% social-rental exemption (active)

If you let a home through an approved social rental management body (gestion locative sociale, GLS), the package raised the income-tax exemption on the net rental income from 75% to 90%, from tax year 2024. A landlord earning €14,400 net through a GLS body now has only €1,440 taxable instead of €3,600, because the exemption climbed 15 points. Status: active (structural).

Cash help: the State guarantee and subsidies were raised (active)

For buyers without a large deposit, the direct aids were widened:

• State guarantee (Garantie de l'État): now covers up to 40% of project cost (raised from 30%), capped at €303,862, so eligible households can borrow without their own cash deposit. Net-income ceilings: €101,874.03 (single borrower) and €141,048.97 (multiple borrowers).
• Interest subsidy (subvention d'intérêts): maximum subsidised rate raised from 2.45% to 3.5%, on new and existing loans.
• Purchase and savings premiums (primes d'accession / d'épargne): income limits lifted, which the government estimated widened the eligible pool of households by about 59%.
• Rent subsidy (subvention de loyer): the per-child top-up was doubled from €40 to €80 a month.

Status: active.

Supply side: the State as buyer (active, multi-year)

The State also committed to buy unsold new-build (VEFA) units from developers and channel them into affordable stock, with a 2024–2027 envelope of €480 million for about 800 dwellings, alongside a broader affordable-housing fund exceeding €900 million for 2024–2026. Status: active (multi-year).

What this means for you today

The net picture depends on who you are. If you are buying your own home, the durable win — the €40,000-per-person Bëllegen Akt credit — is permanent, and the reformed mortgage-interest deduction is more generous, though it tapers as the home ages. If you were investing or selling, the sweeteners (the €20,000 rental credit, the 50% duty-base reduction, the 6% depreciation and the 10.5% capital-gains rate) were one-off and all lapsed on 30 June 2025 (with a 30 September 2025 transitional), which is why 2024–2025 saw a rush of investor deeds. Outcomes always depend on your own income, the property and the timing, so confirm your position with the official Administration des contributions directes or a notary. You can also see how we compute ChatHome price data, browse Luxembourg commune price pages, and read more ChatHome housing insights before you commit.