Buying in 2024 with the "Entlaaschtungs-Pak"

Announced by the Ministry of Finance in July, the “Entlaaschtungs-Pak” promises to relieve Luxembourg households with a package of tax measures. Among them, a considerable advantage for those buying an existing home in 2024. Find out what this means for you!

📊 Substantial financial support for home buyers

The Ministry of Finance has unveiled a €535 million plan to support the economy and households in Luxembourg. While the adaptation of the tax scale made the headlines, another measure escaped the attention of many: a major tax advantage for buyers of existing homes.

📉 Total deduction of interest expenses in 2024 and 2025

If you buy an existing home in 2024, you will be able to deduct your entire interest expense from your taxable income. This also applies to bridging loans.

💡 Deductible limits for subsequent years

After 2025, a deductible ceiling of 4,000 euros will be introduced for the following four years, with decreasing ceilings of 3,000 euros, then 2,000 euros per year. A godsend for lightening the tax burden of homeowners!

📅 When will this measure take effect?

Although this measure is part of a bill that has yet to be voted on, it was already approved by the Government Council on July 17. The Ministry of Finance hopes to implement it as early as January 1, 2025.

💬 What do you think?

How might this “big tax giveaway” change your real estate buying plans? Share your thoughts in the comments! 👇