Tax credits extended in 2025

In 2025 the Luxembourg real estate market is enjoying a fresh impetus! The law of April 4, 2025 (published in Mémorial A No. 121 on April 7, 2025) extends until June 30, 2025 the fiscal measures of the amended law of May 22, 2024 designed to revitalize the housing sector. These provisions introduce attractive tax credits but impose strict requirements. In addition to the credits, they regulate the registration and transcription duties, which together amount to seven percent of the property value and thus represent the largest share of notary costs. On a €500,000 property, these duties total €35,000, whereas notary and administrative fees remain comparatively modest.

To support your real estate projects, the “Bëllegen Akt” tax credit offers a benefit of €40,000 for the purchase of a primary residence by notarized deed. Investors acquiring property solely for rental purposes may claim up to €20,000 in tax credits. Retroactive to January 1, 2025, deeds signed between January and April 2025 may also qualify for a refund, provided the prescribed procedures are followed.

An application form for the “Bëllegen Akt” is available on the Administration de l’Enregistrement website; if no request was included in the original deed, a supplementary notarized deed is required. For the rental credit, a written request must be submitted to the competent receveur, accompanied by a declaration accepting the conditions set out in Article 4 of the law of May 22, 2024. These steps are essential to obtain reimbursement of duties already paid or to benefit directly from the reduction upon purchase.

The legal basis for both credits is the amended law of July 30, 2002, which imposes stringent conditions. Under the “Bëllegen Akt,” the purchaser must register at the property address within two years of the purchase and reside there continuously and exclusively for at least two years. Failure to meet these obligations triggers repayment of the credit with interest. A similar requirement applies to the rental credit, which is contingent on a minimum two-year rental commitment.

A notary is indispensable throughout this process. He drafts the authentic deed, verifies your eligibility for the tax credits, and ensures that all legal requirements—including those of the 2002 law—are strictly observed. He also assists with refund procedures for duties already paid and secures the transfer of ownership by checking title records and pre-emption rights, thereby minimizing your legal risk.

These extended tax credits offer both private buyers and investors a unique opportunity to optimize their costs. Seize this chance before June 30, 2025 and consult a notary today for expert and secure guidance!