Tax incentives extended to 2025!

The Luxembourg government has just announced the extension of tax benefits for the housing sector until July 2025. These measures aim to support the recovery of a struggling market while promoting homeownership and rental investment. Here are the details.

💡 A boost for the construction sector

According to Prime Minister Luc Frieden, this extension is a direct response to the return of demand on the ground. “Not to hinder the momentum that benefits the construction sector” is the priority of the Council of Government, which emphasizes the importance of these measures in supporting a positive economic dynamic.

💶 Tax credit "Bëllegen Akt" increased

The main focus is on le Bëllegen Akt, a tax credit that is benefiting from a significant increase:

• €40,000 per individual for the acquisition of a principal residence.
• 3.5% instead of the 7% registration fee for the acquisition of a principal residence.
• €20,000 per individual for rental investments, particularly for housing under construction (VEFA).

These measures reduce acquisition costs, making property purchases more affordable.

📉 Prolongation des autres incitations fiscales

Other provisions have also been retained:

• The tax on real estate capital gains for sales remains reduced to 10% instead of the usual 20%.

• The accelerated depreciation at 6% per year over a period of six years is extended for rental housing.

These financial incentives will apply until June 30, 2025, pending their final approval by the Chamber.

Don't miss out on these tax opportunities! Take advantage of these benefits to make your real estate project a reality in 2025.

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