Buying in Luxembourg in 2027: the 7 changes to know before signing

After two years of correction, the Luxembourg property market is returning to normal, and the State has added new incentives. For a buyer, the bill is no longer what it was six months ago. Here is what has changed, what is coming on 1 January 2027, and what needs to be sorted out before the end of the year.

1. Bëllegen Akt: 45 000 € per person

Since 16 July 2026, the "Bëllegen Akt" tax credit on registration and transcription duties rises from 40 000 € to 45 000 € per person, for the purchase of your main residence.

In practical terms, with duties of 7%, a single person can buy a property worth about 640 000 € without paying registration duties. A couple has 90 000 €, enough to cover duties on a property up to roughly 1.28 million €.

Example: a house at 640 000 € → 44 800 € in duties → 0 € to pay thanks to the Bëllegen Akt.

Please note: the tax credit can only be used once in total; if you have already used part of it, only the remaining balance is available.

2. Off-plan purchase (VEFA): duties only on the land

For a main residence bought off plan (VEFA), registration duties are only due on the value of the land, provided that the construction is at most 80% complete at the time of purchase. The measure applies to contracts signed from 16 July 2026, for three years.

Combined with the Bëllegen Akt, it makes duties almost nil on most new apartments.

3. Interest subsidy: higher ceilings

• General scheme: loan taken into account up to 250 000 € (instead of 200 000 €).
• Young first-time buyers: up to 300 000 € if at least one borrower is 35 years old or younger.
• Per child: 30 000 € more (instead of 20 000 €), up to a maximum of 370 000 €.

The increase also applies to files already in repayment.

4. Enhanced accession and savings premiums

These premiums are now also available for affordable or moderately priced housing, provided that at least one future owner is 35 years old or younger on the date of the deed. Until now, they were reserved for housing at market prices.

5. Investors: decide before 31 December 2026

A new accelerated depreciation scheme comes into force: 6% per year for 6 years if the depreciable base does not exceed 600 000 € per building. Beyond that, depreciation is 2% on the whole, with no time limit.

The key point is the timing: for an acquisition in 2026, you can still choose between the old and the new regime. From 1 January 2027, only the new regime applies to new acquisitions. If you are hesitating over a rental property, have both scenarios calculated before the end of the year.

Also new: a VAT rate of 8% for social rental housing (120 m² maximum, price per m² below the median of the Observatoire de l'habitat, yield capped at 4%, lease of at least 10 years to an eligible tenant).

6. Housing Bond: early 2027

The State plans to issue a €250 million citizen bond in early 2027. Interest will be exempt from the 20% final withholding tax. It is a way to invest in housing without buying a property.

7. Tax reform: the single tax class is coming

On 28 October 2026, the Chamber of Deputies voted the tax reform that introduces the single tax class "U" from 1 January 2028. For homeowners, several deduction ceilings are increasing: from €672 to €900 for eligible debit interest and insurance premiums, and up to €1,500 for housing savings for 18- to 40-year-olds.

What about prices?

According to the Observatoire de l'Habitat and STATEC, the market continued to normalise in the second quarter of 2026. Prices are no longer falling sharply, but they remain high: the national index rose by 73.5% between early 2015 and mid-2026.

For a buyer, this means less bidding pressure and more room to negotiate. For a seller, setting the right asking price matters more than ever: a property that is correctly valued sells, while an overpriced one stays on the shelf.

Our advice

• You are buying your main residence: calculate your actual costs with the Bëllegen Akt at €45,000 on fraisdenotaire.lu.
• You are investing: if you are aiming for a rental purchase, compare the two depreciation schemes before 31 December.
• You are selling: the new aid increases the budget of many buyers, especially those under 35. Ask us for a free valuation to set the right price.

This article provides general information and does not replace tax or notarial advice. The amounts shown correspond to the measures announced and voted as of the publication date.

Sources: Gouvernement.lu – Booster fir de Wunnengsbau · Housing in figures no. 20 · Paperjam