Housing aid measures extended by 3 months

Rudolphe ABENRudolphe ABEN - NEXTIMMO.LU

Rudolphe ABEN

Housing aid measures extended by 3 months

Initially set to expire on June 30, 2025, Luxembourg's tax benefits for property buyers will now be extended by an additional three months, until September 30, 2025. The announcement was made on Monday by Finance Minister Gilles Roth (CSV) as part of a new bill aimed at supporting homebuyers.

📈 Strong Recovery in the Property Market

The minister justified this extension by pointing to the sharp rise in property sales since the beginning of the year. “Housing sales during the first four months of 2025 more than doubled compared to the same period in 2024,” he said.

Due to this surge in demand, banks and notaries may struggle to finalize all transactions on time. According to Roth, this momentum is the result of two key factors: government tax incentives for households and a decline in interest rates, which together have significantly reinvigorated the housing market.

📋 What Measures Are Being Extended?

The three-month grace period covers the following tax benefits:

  • The €20,000 rental tax credit per individual,
  • A 50% reduction of the taxable base for registration and transcription duties,
  • Accelerated depreciation at 6%,
  • Reduced taxation on capital gains (at a quarter of the global rate),
  • Exemption from capital gains tax for properties transferred for social rental purposes or meeting A+ energy standards.

These measures remain available provided that:

  • The preliminary sale agreement (compromis de vente) is registered before June 30, 2025, or
  • The reservation contract is submitted to the tax authority before that date.

In either case, notaries and banks have until September 30 to complete the notarized transaction. A practical guide is available to help those affected by the deadline.

đŸš« No Further Extension Planned

When asked whether the government might consider extending the deadline beyond September, Gilles Roth responded negatively, stating that “three months should be sufficient.”

🔐 “BĂ«llegen Akt” Remains in Effect

There’s more good news for future buyers: the notarial deed tax credit – known as the BĂ«llegen Akt – will remain at €40,000 beyond June 30, 2025.

This measure allows individuals to pay no registration duties for a property purchase up to €571,000, or up to €1,142,000 for couples.

A bill formalizing this measure has already been submitted and is expected to be adopted by Parliament before the summer recess, if all goes according to plan.