Property Purchase Aids in Luxembourg: What Remains in 2026

Despite a more accessible market, buying in Luxembourg remains a financial challenge. Fortunately, several aids remain in 2026. For sellers, knowing these schemes helps better understand the profile and actual budget of your potential buyers.

The Bëllegen Akt (Tax Credit)

The most significant aid:

• Up to €40,000 per person (€80,000 for a couple)
• On registration and transcription fees
• Reserved for primary residence acquisition
• Non-refundable (credit, not subsidy)

Reduced VAT at 3% (New Build Only)

For purchasing a new build (VEFA) as primary residence:

• VAT at 3% instead of 17%
• Significant savings: 14% of the price
• Capped (approximately €50,000 savings depending on price)
• Not combinable with certain other aids

Interest Subsidy

The state covers part of your loan interest:

• Annual subsidy on interest paid
• Amount varies by income and family composition
• Limited duration (generally 10 years)
• Application to be made after loan signing

Purchase Premium (Housing Aid)

Direct aid for modest households:

• Amount based on income and number of children
• Can reach several thousand euros
• Strict income conditions
• To be requested from the Ministry of Housing

State Guarantee

For those lacking down payment:

• State can guarantee up to 30% of the loan
• Facilitates access to credit
• Income conditions to meet
• Reduces down payment requirement

What Has Changed Recently

Notable developments in recent years:

• Maintenance of Bëllegen Akt despite discussions
• 3% VAT extended but under strengthened conditions
• Interest subsidy adjusted to new rate context
• New criteria for certain housing aids

Impact for Sellers

These aids influence your sale:

1. Actual buyer budget: A buyer eligible for Bëllegen Akt has €80,000 additional purchasing power
2. Buyer profile: Aids attract first-time buyers and families
3. Selling point: A property eligible for multiple aids sells better
4. Old vs. new competition: 3% VAT favors new builds

Tip

Mention in your listings if your property is eligible for Bëllegen Akt (almost all properties are). This reassures buyers about total acquisition cost.