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🏛️ Bëllegen Akt
The “Bëllegen Akt” is the most important financial aid for buyers in Luxembourg. It is a tax credit that sharply reduces notary-related acquisition costs.
In short
€40,000 tax credit per person (€80,000 for a couple). The careful wording to keep in mind is: current official amount of €40,000 per buyer.
Conditions
• The property must serve as your main and permanent residence
• You must live there for at least 2 years after the notarised purchase
• For a building plot, the occupancy logic lasts longer (practical reference: 4 years)
• The request is usually handled automatically by the notary at signature
• The credit can be used all at once or spread across several purchases
Example: a couple buys for €800,000
💡 Good to know
A single buyer pays no registration duties up to a purchase price of roughly €571,000. A couple up to roughly €1,142,000. Above that, only the difference is taxed at 7%.
🏗️ Super-reduced VAT (3%)
For new builds (VEFA) used as a primary residence, Luxembourg applies a VAT rate of 3% instead of 17% on the construction share.
In short
The saving can reach up to €50,000 per dwelling. It applies only to VEFA / new-build purchases for a primary residence.
How does it work?
The price of a new-build property (VEFA) is split between land (no VAT) and construction (VAT applies). The 3% VAT rate applies only to the construction share.
In practice, the construction share often represents around 60% of the total price.
Example: VEFA apartment at €700,000
💡 Important conditions
The property must be your main and permanent residence. The benefit is capped at €50,000 per dwelling. It can be combined with the Bëllegen Akt.
Home ownership grant
The Luxembourg state provides a capital grant for the purchase or construction of a property used as a primary residence.
In short
Between €500 and €10,000 depending on household size and income. Increased by 40% for co-ownership apartments and by 15% for a semi-detached house.
| Annual household income | Estimated grant |
|---|---|
| Below €60,000 | Up to €10,000 |
| €60,000 – €80,000 | ~€7,500 |
| €80,000 – €100,000 | ~€5,000 |
| €100,000 – €120,000 | ~€2,500 |
| €120,000 – €150,000 | ~€500 |
| Above €150,000 | Not eligible |
Conditions
• You must have taken out a mortgage loan with a credit institution
• You must not already own another home
• The application must be submitted within one year after the notarised deed
• The request goes through the central housing-aid office
💶 Savings premium
The savings premium rewards the savings effort used to finance your home. It comes on top of the home ownership grant, but only if your savings file is accepted.
In short
10% of the annual increase in savings, capped at €500 per year, for up to 10 years, with an overall cap of €5,000 per beneficiary.
Key conditions
• You must already have obtained the home ownership grant
• The savings must be held with the same financial institution for at least 1 year
• At least 90% of the saved funds must be invested into the project within 2 years after the deed
• A maximum savings period of 10 years is taken into account
Capital-aid ceiling
The combined total of capital aid (home ownership grant, savings premium, improvement grant and energy-renovation improvement grant) may not exceed €35,000 per beneficiary.
🛡️ State guarantee
This aid is not cash paid into your account. It is a public guarantee that can help unlock a loan when your deposit or bank security is too limited.
In short
The guarantee can cover up to €303,862 and a maximum of 40% of project cost, subject to a mortgage loan with a bank approved under the state scheme.
Key conditions
• At least 3 years of regular saving
• At least €1,000 increase in savings per year
• Maximum annual household income: €101,874.03 for one borrower, €141,048.97 for several borrowers
• The loan must finance at least 60% of project cost
What is it useful for in practice?
It does not increase your budget like a capital grant. But it can reassure the bank and make a file financeable when the deposit or requested coverage is not sufficient.
💰 Interest subsidy
The state can reduce your monthly burden by subsidising part of the interest on your mortgage loan.
Eligible-loan limits
• Base: €200,000
• + €20,000 per dependent child
• Maximum: €280,000
The subsidy is reassessed every 2 years depending on how your income evolves.
Conditions
You must live in Luxembourg, use the property as your main residence for at least 2 years, not own another home, and stay below the legal income cap.
📋 Mortgage-interest tax deduction
The old €2,000 / €1,500 / €1,000 schedule is no longer the right one for a recent purchase. From tax year 2024 onward, the deduction rhythm is more favourable at the beginning of the project.
| Period | Maximum deduction / year | Note |
|---|---|---|
| Year in which the taxable rental value is fixed | Fully deductible | No annual cap |
| Following year | Fully deductible | No annual cap |
| Years 2 to 5 | €4,000 | Per tax person |
| Next 5 years | €3,000 | Per tax person |
| Thereafter | €2,000 | Per tax person |
💡 Important
The ceiling is increased by the same amount again for the jointly taxed spouse / partner and for each child giving rise to a tax reduction.
Before actual move-in
Before the taxable rental value is fixed, debit interest is fully deductible. Loan-opening and financing fees linked to the mortgage (file fees, notarial loan-opening deed, mortgage registration, certain bank commissions) also matter during this phase.
Cross-border watchpoint
To fully benefit from Luxembourg deductions as a non-resident, you generally need to qualify for tax assimilation: 90% of worldwide income taxable in Luxembourg or less than €13,000 of non-Luxembourg net income.
⚖️ Notary fees in Luxembourg
Unlike in many countries, “notary fees” in Luxembourg consist mainly of state taxes. They should be distinguished from loan-opening / mortgage fees, which matter for the tax reading.
| Component | Rate | Details |
|---|---|---|
| Registration duties | 6% | Main tax on the purchase price |
| Transcription duties | 1% | Land registry registration |
| Notary fees | ~0.5-1% | Notary remuneration (variable) |
| Approximate total | ~7-8% | Before Bëllegen Akt |
With the Bëllegen Akt
The 7% registration and transcription duties are reduced thanks to the tax credit. For a couple, effective fees are often close to €0 for properties up to roughly €1.1M.
Do not mix them up
Registration and transcription duties are what the Bëllegen Akt offsets. Bank file fees, the loan-opening deed and mortgage registration belong more to the financing logic and the tax deductibility of the pre-occupation period.
🌿 Energiepass — energy performance certificate
In Luxembourg, every home sold or rented must have an energy performance certificate (Energiepass). The energy class strongly affects market appeal and often pricing too, but the exact gap still depends on commune, asset type, size, condition and the transaction moment.
| Class | Cautious reading | Practical takeaway |
|---|---|---|
| A-B | Very sought after, often with a visible premium | Better liquidity, lower energy bills and an easier story for buyers |
| C-D | Solid to mid-market | Area, condition and co-ownership costs often decide the real outcome |
| E-F | More price-sensitive | Negotiation and renovation budget matter more in the decision |
| G | Often seen as a renovation case | Price the works before making an offer and review available aid |
There is no universal euro premium between two energy classes. The real gap depends on address, condition, running costs, renovation path and the live market at the time of sale.
Best practice: combine the energy certificate with the official logement.lu simulator and, when works are planned, the Klima-Agence simulator.
♻️ Energy renovation — the right reflex
Rather than hard-coding renovation amounts into a small internal calculator, the smarter approach is to use the official simulator and then reason with a realistic global range.
Potential aid level
For a full renovation (façade + roof + windows + heat pump), the combination of Klimabonus + Enoprimes + municipal aid + 3% VAT can represent 35% to 55% of total cost, or roughly €35,000 to €50,000 for a 150m² house.
Useful order of magnitude
For a full renovation (façade + roof + windows + heat pump), the combination of Klimabonus + Enoprimes + municipal aid + 3% VAT may cover 35% to 55% of total cost, which is around €35,000 to €50,000 for a 150m² house.
Why this choice?
Renovation aid varies depending on the nature of the works, the year, the performance reached and the municipality. The official simulator avoids over-promising with fixed numbers that become outdated quickly.
🌍 Buying in Luxembourg as a cross-border worker
More than 200,000 cross-border workers cross the border every day. Here is what matters if you want to buy in Luxembourg.
🇫🇷 Cross-border workers from France
You can buy in Luxembourg with a Luxembourg employment contract. Luxembourg banks accept French income. The Bëllegen Akt applies if you make the property your main residence. The tax effect becomes especially meaningful if you qualify for Luxembourg tax assimilation.
🇧🇪 Cross-border workers from Belgium
Access to credit is broadly similar to Luxembourg residents. Prices are higher than in Belgium, but state aid such as the Bëllegen Akt and home ownership grant can offset a significant part of the gap. The tax effect should still be checked in a cross-border setup.
🇩🇪 Cross-border workers from Germany
A Luxembourg employment contract is usually enough to borrow. Watch out for double taxation under the LU-DE treaty. The Trier-Luxembourg corridor can be more affordable, and the tax impact should also be checked separately in a cross-border context.
Tax assimilation: the key point not to miss
To be taxed like a Luxembourg resident and benefit from the same deductions, you generally need 90% of worldwide income to be taxable in Luxembourg, or non-Luxembourg net income below €13,000.
Rental-side aid
A rent-vs-buy comparison becomes misleading if it ignores the aid reserved for tenants. At minimum, rent subsidy and the rental-deposit guarantee should appear.
Rent subsidy
The amount can vary between €10 and €520 per month depending on household composition and income. In a rent-vs-buy calculation, this aid should appear as a reduction in net rent.
Rental-deposit guarantee
The state can act as guarantor for the rental deposit. This allows the tenant to avoid blocking the full guarantee upfront and rebuilds the equivalent amount over 3 years.
📊 Luxembourg property market — latest official benchmarks
To avoid freezing numbers that go stale too quickly, this block uses the latest clearly dated official benchmarks from the Observatoire de l'Habitat.
| Segment | Latest official benchmark | Change |
|---|---|---|
| Existing apartments | €7,764/m² in Q4 2025 | +2.1% vs Q3 2025 · −0.3% over 12 months |
| Under-construction apartments (VEFA) | €9,507/m² in Q4 2025 | −5.3% vs Q3 2025 · −2.8% over 12 months |
| Average price of one VEFA apartment | ~€771,000 in Q4 2025 | +13.2% over 12 months |
| Advertised apartment rents | Q4 2025 | +3.0% over 12 months |
| Number of apartment rental listings | Q4 2025 | +14% over 12 months |
How to read these sources correctly
Sale prices come from notarised transactions. Rents are advertised rents from the private market and are not necessarily the final rents signed in tenancy contracts. For municipalities, districts or micro-markets, the official simulator is more reliable than hard-coding local figures.
Date to keep in mind
The official sale-price page and the official rent page were updated on 25 March 2026. The latest directly usable official benchmarks are Q4 2025 for sales and Q4 2025 for the evolution of advertised rents.
Central housing-aid office
The official contact point for all questions about housing aid
📍 11, rue de Hollerich · L-1741 Luxembourg
📞 +352 8002 10 10 (lundi-vendredi 8h-16h)
→ guichet.public.lu