On paper, it is the most technical measure in the « Booster fir de Wunnengsbau » package presented on 16 July 2026. In practice, it is the one that can do the most to change the profitability of a buy-to-let investment in Luxembourg: the accelerated depreciation known as « three times 6 ». Here is how it works, explained simply, with a simulator to test your own situation in thirty seconds.
Key takeaways
- The « three times 6 »: 6 % depreciation per year, for 6 years, provided the depreciable base does not exceed 600 000 € per building. That is up to three times more deductible expenses than today.
- Beware of the threshold effect: if the base exceeds 600 000 €, the rate is 2 % on the entire amount, with no preferential rate.
- The measure is a draft law, not yet voted. In 2026, you can choose between the old and the new regime; from 1 January 2027, the new regime applies to new acquisitions.
Depreciation, explained simply
When you rent out a home, the tax authorities accept an obvious fact: your property wears out. The law lets you deduct this wear and tear from your rental income every year, as if it were an expense. That is depreciation: a deductible expense without spending a single euro out of pocket. The higher the depreciation rate, the more your taxable rental income shrinks, and the less tax you pay.
Two basic rules to know. First, only the building is depreciated, never the land: in practice, the Luxembourg Inland Revenue (ACD) assumes by default that 20 % of the price relates to the land, leaving a depreciable base of around 80 % of the price, notary fees included. Second, the rate depends on the regime: today, a rental property is generally depreciated at 1.5 or 2 % per year depending on its age, and at 4 % if it was completed less than 5 years ago, limited to two properties per taxpayer.
What the « three times 6 » changes
The new regime replaces this system for new acquisitions. The rule fits on one line: 6 % per year for 6 years, provided the depreciable base does not exceed 600 000 € per building. After the 6 years, you revert to the standard rate based on the age of the property.
| Current regime | New « 3 × 6 » regime | |
|---|---|---|
| Standard rate | 1.5 to 3 % depending on the age of the property | 6 % for 6 years (base ≤ 600 000 €) |
| Accelerated rate | 4 % if completed less than 5 years ago, maximum 2 properties per taxpayer | 6 % as of right if the cap is respected |
| If base > 600 000 € | Not applicable | 2 % on the entire base, with no time limit |
| Timeline | Applies to acquisitions until 2026, then lapses | 2026: optional. From 01/01/2027: sole regime for new acquisitions |
The philosophy is clear: focus the tax advantage on the private investor buying a rental home of reasonable size and price, which is exactly the profile of the southern market. On a base of 400 000 €, you go from 8 000 € deductible per year (2 %) to 24 000 € (6 %). At a marginal tax rate of 42 %, that is roughly 6 700 € less tax every year, for six years.
The trap to know about: the 600 000 € threshold effect
The official press release is unambiguous: once the 600 000 € threshold is exceeded, the 2 % rate applies to the entire base. It is not a partial cap, it is all or nothing. In concrete terms, a base of 590 000 € entitles you to 35 400 € of annual depreciation; a base of 610 000 € drops back to 12 200 €. Twenty thousand euros of extra price can cost you more than 23 000 € of deduction per year for six years. The threshold is assessed per building: how the purchase is structured (land/building split, scope of the deed) becomes a genuine topic to work through with your notary and your tax adviser before signing.
Are you eligible? Test it in 30 seconds
Many owners ask the same questions: does depreciation lower the price of my property? Does it reduce my taxes? The simulator below answers visually: enter your rent and your purchase price, and follow the calculation step by step, from what you collect to what the tax office actually taxes.
CARMO educational « 3 × 6 » simulator
The principle in 3 sentences: 1. You declare your rental income. 2. You deduct your actual expenses AND the depreciation, a theoretical wear and tear of the building that costs you nothing. 3. You are only taxed on what remains. The « 3 × 6 » triples this deduction for 6 years. Test it with your own figures:
What still needs to be confirmed when the law is voted
In all honesty, the press release does not yet spell out everything. Three points remain open: the exact list of eligible properties (new builds only or existing homes too; the text refers to « acquisitions » with no stated restriction), the rate applicable after the 6 preferential years, and the fate of the current limit of two properties per taxpayer. We will update this article and the simulator as soon as the text is voted. Until then, no purchase decision should rest on the announcement alone.
If you invest in the South
The 600 000 € cap on the depreciable base corresponds to a purchase price of around 750 000 € (with 20 % attributed to land). In other words, almost every rental apartment in the southern region falls under the cap: at 6 500 €/m² in Esch-sur-Alzette or Pétange, even a large three-bedroom apartment remains eligible for the 6 %. Combined with the 8 % VAT on affordable rental housing and the gross yields available in the area (up to 4.8 % in Bettembourg), the South ticks every box of the new scheme. This is precisely the type of property the text is designed to favour.
Frequently asked questions
What is the « three times 6 » accelerated depreciation?
A new tax regime announced on 16 July 2026: 6 % depreciation per year for 6 years for a rental home whose depreciable base does not exceed 600 000 € per building. Above that threshold, the rate drops back to 2 % on the entire base.
Does depreciation reduce the value of my property?
No. It is a purely tax-related entry: the tax authorities accept that the building wears out and let you deduct this theoretical wear and tear from your rental income. Your property itself is worth whatever the market will pay, and may well gain value while you depreciate it.
Does depreciation really save me tax?
Yes. It is an expense deductible from your rental income with no cash outflow. On a base of 400 000 €, the 6 % represents 24 000 € deductible per year, versus 8 000 € at the standard 2 % rate. At a marginal tax rate of 42 %, that is roughly 6 700 € less tax each year compared with the current regime, for six years.
What happens if my property exceeds a 600 000 € base?
The press release is explicit: above the threshold, it is 2 % on the entire base, without the preferential rate. The threshold effect is brutal, which is why it is essential to calculate the exact base (price excluding land, notary fees) before signing.
I am buying in 2026: which regime applies?
You will have the choice between the old regime (4 % if the home was completed less than 5 years ago, limited to two properties; otherwise 1.5 to 2 %) and the new « 3 × 6 ». From 1 January 2027, the new regime will apply exclusively to new acquisitions.
Is the measure already in force?
No. It is a draft law presented in committee. The final terms depend on the text that is voted. Check with your tax adviser before making any decision.
How is the depreciable base calculated?
The acquisition price including notary fees, minus the land share, which the Luxembourg Inland Revenue (ACD) sets by default at 20 % of the price. That leaves a depreciable base of around 80 % of the total price.
Further reading
- Booster fir de Wunnengsbau: the 7 housing measures for 2026 explained
- Raising the rent in Luxembourg: the landlord’s guide
- Get a valuation for a property or rental project in the South
Sources
« Booster fir de Wunnengsbau » press release, Ministries of Housing and Finance, 16 July 2026 (gouvernement.lu). Current depreciation regime: Luxembourg Inland Revenue (ACD), « Immeuble donné en location » guidance note (impotsdirects.public.lu). Legislative status: Chamber of Deputies (chd.lu).
This article and its simulator are for information purposes only and do not constitute tax advice. The measure described is a draft law that may change. Check your own situation with your tax adviser and your notary before making any decision.
David Carmo runs CARMO Immobilier in Pétange. A specialist in the residential market of southern Luxembourg (valuation, sales, negotiation), he is a director and founding member of the Fédération des Agents Immobiliers (FAI) and a former board member of the Chambre de l’Immobilier (CIGDL).
Looking for the right buy-to-let property in the South? The new regime makes the numbers more attractive, but you still need to buy at the right price. Let’s talk about your investment project.