End of housing development: government ensures a transition period
As announced, the Luxembourg government will expire the tax package to promote housing in the end of June. Finance Minister Gilles Roth (CSV) emphasized on Monday in a press briefing that the figures for real estate transactions recently pointed significantly up. The number of notarial entries doubled in the year comparison. According to the minister, the fact that the market is attracting the market is due to the lower interest rates, but also due to the measures.
« The government has clearly expressed that it will not extend the tax package beyond June 30th. And we have kept word. At the same time, we have to remain flexible in order to be able to react if necessary, » said the finance minister in a statement. On Monday, Roth then also terminated a transitional arrangement, with which those interested in buying in particular are to be relieved, the real estate transactions of which, due to the overload of banks and notaries, cannot be completed in good time until the current period.
Extension of the expiry period
The package of measures, which was introduced by law in May 2024, aimed at a short -term revival of the real estate market and included tax reliefs for buyers of rental apartments and more favorable taxation of sales gains. So far, these advantages have been linked to the condition that the notarial purchase contract must be concluded by June 30, 2025 at the latest. In view of an unexpectedly high crowds to the banks and notary, the government now grants a limited time without questioning the actual course of the deadline.
Finance Minister Gilles Roth confirmed the expiry of determinations in housing construction on Monday. Photo: LW archive
In the future, it will be sufficient if either a signed prior agreement (« Compromis de Vente ») or a reservation contract is signed for an apartment (« Vente en l’état Futur d’Chnvement ») that has not yet been completed and registered with the tax management (AED). The formal notarial purchase act can then be made up for by September 30, 2025. This period is intended to provide buyers the necessary time frame in order to complete existing processes in accordance with the leg.
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The regulation contained in the legal project refers to several core components of the package of measures decided in 2024: This includes the investor loan of EUR 20,000 per person for rental apartments, the halving of the assessment basis in the collection of register and transcription fees, the possibility of an accelerated depreciation of six percent annually as well as a tax fleet to sales profit Investment criteria are met. The complete tax exemption in the event of a reinvestment in the social rental apartment building or in energy, particularly high -quality buildings remains part of the transitional regulation.
No change in the « Bëllegen Act »
However, there are no changes in the so -called « Bëlegen Act », which supports the acquisition of a self -used main apartment with up to 40,000 euros per person. This advantage continues to apply beyond June 30 and is not affected by the new legislative proposal. « With the new bill, we offer buyers more flexibility and at the same time support the provision and creation of living space, » says Finance Minister Gilles Roth.
Accompanying the new regulation, the Ministry of Finance has published a guide that summarizes the most important processes, deadlines and contact points from the tax administration. The guide is publicly accessible via the portal for indirect taxes.
