New Measures for Housing
Following the first measures announced last Thursday, here are the details of the new government’s action plan for housing: comprising ten key measures:
- Increase in the accelerated depreciation rate for rental properties.
- Reducing the rate of capital gains tax on property sales.
- Consultation with the European Commission to increase the housing VAT tax concession to 3% and transfer capital gains on property within the country.
- Introduction of a new “Bëllegen Akt” tax credit for investment in rental property by private individuals.
- Increase in the exemption of net income from renting through social rental management bodies.
- Launch of a public fund enabling private individuals to invest in property projects, including multi-family housing.
- Introduction of a national register of buildings and dwellings to calculate tax on vacant homes.
- Introduction of tax on vacant homes, with a possible upward adjustment in the level of taxation.
- Development of off-perimeter land for the construction of affordable housing.
- Creation of a legal framework for the lease-purchase of housing built by local authorities or public developers.
- Creation of a legal framework for the lease-purchase of housing built by local authorities or public developers.
In terms of transparency, the government is committed to providing buyers and tenants with clearer information on property prices by regulating property advertising, and will tighten the requirements for access to the profession of estate agent.
[Source: paperjam.lu] [Photo credit: Fabrizio Pizzolante]
