Planning to buy property in Luxembourg? Now is the time to act. Temporary fiscal measures introduced to support the real estate market will officially end on June 30, 2025. Let’s look at what’s ending — and what remains in place.

 

Confirmed end of temporary fiscal incentives

 

The Luxembourg government has clearly confirmed that it will not extend the temporary tax relief measures introduced during the housing crisis. The expiring measures include:

  • A reduced registration duty rate of 3.5% instead of 7%
  • Accelerated depreciation at 6% for residential real estate investors
  • Capital gains tax reduced to a quarter of the standard rate
  • Targeted tax relief for developers and construction firms to boost new housing supply

 

➡️ All of these measures will officially expire on June 30, 2025.

 

The Bëllegen Akt tax credit remains available

 

The good news? The Bëllegen Akt tax credit, a major benefit for private buyers, remains in effect and is not part of the expiring measures.

 

This credit allows buyers of their primary residence to:

  • Benefit from a tax exemption of up to €40,000 per person
  • Reduce or fully cancel registration duties on their purchase

 

A first-time buyer couple can purchase property worth up to €1,142,000 without paying any registration tax by combining both entitlements.

 

What this means for buyers

 

If you're planning to buy in the coming weeks:

  • Before June 30: you may still benefit from the temporary fiscal incentives if your sale agreement is signed in time
  • After June 30: only the standard schemes (like the Bëllegen Akt) will remain

 

➡️ The clock is ticking: at MORTGAGE.LU, we’re still submitting financing requests eligible for the current schemes — but deadlines are tight.

 

Every day counts to sign your compromis, build your financing file and secure a bank offer on time.

 

Government strategy: accelerating housing through administrative reform

 

Beyond ending direct fiscal aid, the Luxembourg government is shifting focus to a deep reform of administrative procedures to boost housing development.

 

“We are committed to building more and faster. To do so, we are changing the entire approach to permitting and planning,” said Prime Minister Luc Frieden.

 

Reforms already announced (January 2025):

  • “Natur auf Zeit” principle: allows land to be temporarily returned to nature before future development
  • “One-time environmental compensation” rule: simplifies eco-offsets for construction projects

 

These aim to reconcile environmental protection with the urgent need for housing.

 

Upcoming measures expected in 2025:

  • Phase 2 of the “silence means approval” principle: allows permits to be approved if no response is given within a set time frame
  • New national building regulation: to unify construction rules across the country
  • Simplification of PAG and PAP procedures: improving urban planning at the municipal level

 

Future tax on unused buildable land

 

The government also announced plans to present a land mobilization tax this summer. This measure aims to encourage owners of unused buildable land to either develop or sell, rather than retain it as passive investment.

 

Market stakeholders have been awaiting this reform for years — and expectations are high.

 

Conclusion

 

The end of temporary incentives creates a unique window of opportunity for buyers. While the Bëllegen Akt remains a strong advantage, timing is now critical.

 

The team at MORTGAGE.LU is ready to move fast and help you act on time. Reach out today.