Finance Minister Gilles Roth and Housing Minister Claude Meisch presented on 16 July a package of seven measures intended to revive residential construction in the Grand Duchy. Named « Booster fir de Wunnengsbau », the scheme combines tax relief, investment support and direct State intervention, with a clear objective: build more, make housing more affordable and increase supply.
What the package contains
- Exemption from registration duties on VEFA sales (0%). Individuals acquiring their main residence off-plan (VEFA, sale in a future state of completion) benefit from a 0% rate on the construction portion (up to 80% built), for three years from 16 July 2026.
- « Bëllegen Akt » raised to €45,000 per person. The tax credit on notarial deeds increases by €5,000 compared with the current regime, for the purchase of a home intended for personal occupation, from 16 July 2026.
- VAT reduced to 8% for « social » housing. Applicable to apartments of 120 m² maximum, sold at the corresponding median price, rented for ten years to a certified tenant with rent capped at 4%. Entry into force with the law.
- Accelerated depreciation of 6% over six years, up to €600,000. A new regime applicable from 2027, with the option to choose between the current regime and the new one for acquisitions made in 2026.
- Housing Bond: a new €250 million citizen bond. Intended to finance affordable housing, with no withholding tax on the interest. Launch planned for early 2027.
- Enhanced interest subsidy on property loans. The loan ceiling taken into account for the calculation rises from €200,000 to €300,000 for young first-time buyers, and from €200,000 to €250,000 for all households, with €30,000 per child instead of €20,000. Young buyers up to the age of 35 purchasing affordable or moderately priced housing will now also be able to benefit from the home purchase premium and the savings premium.
- An additional €300 million for the purchase of off-plan housing. The State will now be able to acquire not only entire projects, but also parts of VEFA projects, in order to rapidly increase the supply of affordable housing.
In practice
Several measures apply from today (exemption from registration duties, increased Bëllegen Akt), while others will come into force with the law or in early 2027 (8% VAT, accelerated depreciation, Housing Bond). Buyers who sign in 2026 will retain the option to choose between the old and the new depreciation regime, a point to factor into any property investment thinking from now on.
At CorExperts, we analyse the impact of these measures on your property acquisition or investment projects. For a review of your situation, contact our team.