Key takeaways: between the Bëllegen Akt (up to €40,000 of duties wiped out per buyer), the 3% housing VAT (benefit up to €50,000), the State guarantee, the interest subsidy and the savings premium, the Luxembourg State co-finances part of your property purchase. A first-time-buyer couple can combine more than €130,000 in advantages. Here is the complete 2026 overview, aid by aid, with the conditions and the pitfalls, plus the new measures announced in July 2026.
The 2026 summary table
| Aid | Maximum benefit | Key condition |
|---|---|---|
| Bëllegen Akt (tax credit on duties) | €40,000 per buyer (€80,000 as a couple) | Main residence, occupation within 2 years (4 years for land or off-plan) |
| 3% housing VAT | €50,000 per home | Creation or renovation, main residence |
| State guarantee | Up to around €304,000 of loan guaranteed | 3 years of regular saving + income ceilings |
| Interest subsidy | 0.25 to 3.50% rate subsidy | Eligible loan capped at €280,000, by income and children |
| Savings premium | €5,000 per beneficiary | Prior regular saving (10% of the increase) |
| Announced (not voted): July 2026 package | Bëllegen Akt €45,000, off-plan duty exemption, higher ceilings | Subject to the vote, retroactivity planned to 16/07/2026 |
The Bëllegen Akt: the aid every buyer uses
Registration and transcription duties amount to 7% of the purchase price. The Bëllegen Akt tax credit wipes out up to €40,000 per buyer: as a couple, a purchase of around €1.1 million goes through without duties. Conditions: occupy the home as your effective main residence within 2 years of the deed (4 years for building land or an off-plan purchase), and stay at least 2 continuous years, otherwise the benefit is repaid with interest.
Two subtleties worth knowing: the amount applies per buyer, which makes buying as a couple particularly efficient (see also this CARMO blog article: buying together in Luxembourg), and contrary to a persistent rumour, the Bëllegen Akt is not conditional on the property's energy class (see also: Bëllegen Akt and energy class, fact vs fiction).
The 3% housing VAT: up to €50,000 on construction or renovation
Works creating or renovating a home used as a main residence benefit from the super-reduced 3% rate instead of 17%, with a tax benefit capped at €50,000 per home. Two routes: direct application of the rate (prior approval from the AED, requested by the contractor and countersigned by you) or reimbursement afterwards. Watch the use requirement: if the home changes use within the legal period, the benefit is repaid with interest.
Individual housing aids: the little-known trio
- The State guarantee: if your savings are insufficient as security, the State guarantees up to around €304,000 of loan. Conditions: regular saving for at least 3 years, a loan covering at least 60% of the cost, income ceilings (around €102,000 for a single borrower, €141,000 for several, indexed values).
- The interest subsidy: a rate subsidy of 0.25 to 3.50% depending on income and dependent children, on an eligible loan capped at €200,000 + €20,000 per child (maximum €280,000). Over 25 years, it can represent tens of thousands of euros.
- The savings premium: 10% of the increase in your home savings, capped at €500 per year and €5,000 in total. Capital aids can be combined up to €35,000 per person.
These aids are applied for with the Ministry of Housing, via MyGuichet. They are prepared in advance: the 3-year regular-saving condition cannot be improvised at compromis time.
What the July 2026 package will change (subject to the vote)
The "Booster fir de Wunnengsbau" presented on 16 July 2026 notably provides for: the Bëllegen Akt raised to €45,000 per buyer, exemption of duties on the construction share for off-plan (VEFA) purchases (home at most 80% completed, for 3 years), and higher ceilings for individual aids (up to €300,000 guaranteed for under-35s, subsidisable loan raised to €250,000 + €30,000 per child). None of these measures is voted, but retroactivity to 16 July 2026 is planned for the main ones. The full analysis of the 7 measures is in this CARMO blog article: Booster fir de Wunnengsbau, what the measures change.
And for investors?
The €20,000 tax credit for rental investment (2024 law) has expired and has not been renewed. The real 2026 levers for landlords lie elsewhere: the 90% exemption of net rental income under social rental management (see also: social rental management, the guide) and, if the July package is voted, the accelerated "3×6" depreciation at 6% for 6 years (see also: accelerated 3×6 depreciation, understand and simulate).
In what order to proceed
- Before searching: calculate your borrowing capacity, check your entitlement to individual aids (income ceilings) and, if needed, start the regular saving that opens the State guarantee.
- At the compromis: the Bëllegen Akt applies at the notarial deed, but the structure (one or two buyers, shares) is decided before signing the compromis.
- For works: request the 3% VAT approval before starting; it is simpler than reimbursement afterwards.
Frequently asked questions
What aids exist for buying a home in Luxembourg in 2026?
The main ones: the Bëllegen Akt (up to €40,000 of duties wiped out per buyer), the 3% housing VAT (benefit up to €50,000), the State guarantee, the interest subsidy and the savings premium. A raise of the Bëllegen Akt to €45,000 has been announced, subject to the vote.
How much can a couple save in total?
Up to €80,000 in duties (2 × €40,000), €50,000 of VAT benefit on a construction or renovation, and tens of thousands of euros of interest via the subsidy: the total commonly exceeds €130,000 for a project with works.
Does the Bëllegen Akt apply to a rental purchase?
No. It is reserved for the effective, personal main residence. The specific €20,000 tax credit for rental investment, created in 2024, has expired.
Are cross-border workers and non-residents eligible?
The Bëllegen Akt is open to residents of the European Economic Area who undertake to occupy the home in Luxembourg as their main residence. Individual aids require living in the home; check your situation on Guichet.lu.
What happens if I sell before the occupation period ends?
The benefit is repaid, with legal interest, except in cases provided for by the texts. The rule: occupy within 2 years (4 years for land or off-plan) and stay at least 2 continuous years.
What to remember: public aids genuinely change a purchase budget, but they are prepared before the compromis: buying as a couple to double the Bëllegen Akt, regular saving for the State guarantee, VAT approval before works. It is a reflex we build into every purchase and sale we accompany: a well-aided buyer also means a sale that finances more easily.
Request my free valuationRead: the 7 housing measures for 2026
Sources and legal basis
- AED: Bëllegen Akt tax credit; Guichet.lu: conditions and occupation periods
- AED: housing VAT, super-reduced 3% rate (€50,000 cap)
- Guichet.lu: State guarantee; interest subsidy; savings premium (amended law of 7 August 2023 on individual housing aids)
- Gouvernement.lu: "Booster fir de Wunnengsbau" package (16 July 2026, announced measures, not yet voted)
By David Carmo, founder of CARMO Immobilier, has been a real estate professional since 2008. A former member of the board of directors and disciplinary council of the Chambre Immobilière du Grand-Duché de Luxembourg, he is today a founding member and board member of the Fédération des Agents Immobiliers (FAI) and a trainer at the Académie de l'Immobilier.
This article is for information purposes and does not constitute tax advice. Amounts and conditions change: check the legislation in force on Guichet.lu before any decision.