Government measures to support the real estate sector

Tax initiatives in Luxembourg extended until July 2025

The Luxembourg government recently announced a series of measures to support the real estate sector and facilitate access to housing for its residents. These initiatives, originally scheduled to expire at the end of 2024, have been extended to June 30, 2025, offering further opportunity to buyers, investors and tenants.

Main measures extended :

1. Reduced registration fees (“Bëllegen Akt”):

This measure enables a significant reduction in costs when purchasing real estate, making the purchase more affordable for many households.

2. Tax benefits for rental investors :

Investors who purchase property for rental benefit from tax incentives, encouraging an increase in the rental supply on the market.

3. Accelerated depreciation:

A depreciation rate of 6% per year for six years is applied to new homes under construction, with a ceiling set at €250,000.

4. Reduced capital gains tax:

The capital gains tax rate on the sale of real estate is reduced to 10.5%, instead of the usual 21%.

These measures are designed to strengthen the construction sector, increase the supply of housing and support private individuals in their acquisition or rental activities. Prime Minister Luc Frieden emphasized that these initiatives have a triple objective: to boost the construction and craft industries, create jobs, and facilitate access to housing for residents.

For Luxembourg residents, this extension represents a significant opportunity. Whether you're a buyer, investor or tenant, it's essential to find out about these measures and take advantage of these benefits before they expire in June 2025.

At Nextimmo, we are committed to supporting you in your real estate projects by providing up-to-date information and helping you make the most of the opportunities offered by these government measures.