🚀 Housing in Luxembourg: the "Booster fir de Wunnengsbau" plan explained for borrowers
On 16 July 2026, Housing Minister Claude Meisch and Finance Minister Gilles Roth unveiled a new package of seven measures called "Booster fir de Wunnengsbau" ("Méi bauen. Méi erschwénglech. Méi Wunnengen." — Build more. More affordable. More homes.). The goal: to restart construction, support access to home ownership and expand the supply of affordable housing.
At MORTGAGE.LU, we support first-time buyers, families and investors — residents and cross-border workers alike — every week. These measures directly affect the real cost of your project and your borrowing capacity. Here is our breakdown, measure by measure, with what it concretely means for your financing.
💶 The context: stable rates this summer, but a window to seize
Before getting into the measures, a quick look at the market in mid-2026:
- 📊 Fixed rates around 3,80% over 15 years and 4% to 4,20% over 30 years
- 🔄 A slight rise since June, in the wake of the ECB
- ⏳ Summer stability, but a risk of an increase in the autumn (September)
👉 Our take: these new aids arrive just as the cost of credit remains high. Combined well, they can offset a good part of that rate effect. The key is building the right file at the right time.
🏡 1. Bëllegen Akt raised to €45,000: up to €640,000 with no registration duties
This is the most tangible measure for a buyer financing their main residence.
- The "Bëllegen Akt" tax credit rises from €40,000 to €45,000 per individual
- For a couple, that means €90,000 of combined tax credit
- The result: buying a property worth around €640,000 with no registration duties (≈ €1.3 million for two buyers)
- Applies to acquisitions from 16 July 2026
👉 Our advice: this tax credit reduces your deed costs, and therefore the down payment you need to mobilise. Less cash tied up in fees means better borrowing capacity and a stronger financing plan in front of the bank.
👨👩👧 2. Stronger interest subsidy: a real boost for the under-35s
This is probably the measure with the biggest impact on a young household's monthly payment.
- For first-time buyers aged 35 or under, the maximum loan amount taken into account for the interest subsidy rises from €200,000 to €300,000 (+€100,000)
- For all households, the ceiling of the subsidised loan rises from €200,000 to €250,000
- The increase per dependent child rises from €20,000 to €30,000, up to a ceiling of €370,000
- These improvements benefit both new applicants and files already being paid out
Concretely (government examples):
| Profile | Monthly gain |
|---|---|
| Young household, 1 child, net income €79,000 | up to +€133/month |
| Young household, 4 children, net income €80,000 | up to +€398/month |
👉 Our advice: these aids stack with the bank loan. We factor them in from the first simulation to calculate your real net monthly cost — often far more favourable than buyers assume.
🏗️ 3. Buying off-plan (VEFA): registration duties only on the land
For those buying new-build off-plan (Vente en l'État Futur d'Achèvement):
- When construction is at most 80% complete at the time of acquisition, registration and transcription duties are due only on the value of the land
- Applies to VEFA acquisitions signed from 16 July 2026, for three years
👉 Our advice: combined with the Bëllegen Akt, this exemption sharply reduces the acquisition costs of new-build. One more reason to compare new and existing calmly within your financing plan.
📈 4. Investors: accelerated "three times 6" depreciation
For buy-to-let investment, a new, more attractive regime:
- Depreciation of 6% for 6 years when the depreciable base does not exceed €600,000 per building
- Above that threshold: 2% on the entire base, with no time limit
- Acquisitions made in 2026 can choose, by option, between the old and the new regime; from 1 January 2027, the new regime applies to new acquisitions
On top of this, a reduced VAT of 8% for the creation of social rental housing (subject to conditions on floor area, price, yield and rental duration).
👉 Our advice: the return on an investment depends as much on tax treatment as on the rate. We structure the financing taking both levers into account.
💰 5. Housing Bond and the State's VEFA programme: supply gets moving again
Two measures acting further upstream, on housing supply:
- 🏦 Housing Bond: a citizen bond issue of €250 million, with interest exempt from the 20% withholding tax, launch planned for early 2027
- 🧱 State VEFA programme: an additional €300 million and a new partial-acquisition logic, which helps projects reach the pre-sale threshold required by banks and get construction sites started
👉 Why it matters to you: more sites launched means more homes available tomorrow — and better-controlled pressure on prices for future buyers.
📌 Key takeaways
- ✅ Bëllegen Akt at €45,000: up to €640,000 with no registration duties (€90,000 for a couple)
- ✅ Stronger interest subsidy: up to several hundred euros of monthly aid, especially for the under-35s
- ✅ VEFA: registration duties calculated on the land only
- ✅ Investors: 6% depreciation over 6 years + 8% VAT on social rental
- ✅ All this in a market where the rate remains the biggest cost item: every aid counts
🌟 Why go through MORTGAGE.LU to benefit from it?
- 📈 Access to every bank on the market for the best rate
- 🧮 Calculation of your borrowing capacity factoring in the new aids
- 📄 A financing certificate recognised by agencies to secure your offer
- 🤝 Personalised support all the way to signing
The precise terms of some measures will be confirmed when the laws enter into force. We follow these developments closely to adapt your financing strategy.
📲 Contact us today for a free, confidential simulation and find out how much the "Booster fir de Wunnengsbau" can save you on your project.
