Extension of Tax Measures to Support the Real Estate Market in Luxembourg
Prime Minister Luc Frieden has announced an extension of the tax mesures initially set to expire at the end of 2024 a great news for homebuyers finalizing their property purchases!
An Unexpected Turn of Events
Just weeks ago, Housing Minister Claude Meisch stated that these tax measures would not continue beyond 2024. However, following consultations with market stakeholders such as banks, notaries, and property developers, the government has decided to extend these incentives.
Measures Extended Until July 2025
The Prime Minister clarified that incentives like the enhanced Bëllegen Akt, Bëllegen Akt for rental investors, the accelerated 6% depreciation, and reduced capital gains tax will now be valid until July 1, 2025. A bill will be presented in January to formalize this extension, with retroactive application from January 1, 2025.
Supporting Current Market Momentum
According to Luc Frieden, the goal of these measures is to sustain the emerging momentum in the real estate market following two challenging years. “We want everyone to have a chance to benefit from these aids and support the economic recovery,” he stated, emphasizing that this extension is a one-time measure.
Boosting Economic Recovery
The Prime Minister is optimistic that these measures will contribute to broader economic recovery in Luxembourg, with growth projections close to 2% next year. “Feedback indicates that demand is picking up, especially in the new housing market,” he noted, adding that Luxembourg’s economic environment appears more favorable than in neighboring countries.
Last Chance to Benefit
Luc Frieden was clear: no further extensions will be considered after July 2025. This decision gives real estate stakeholders the time needed to meet demand and finalize ongoing transactions.
Now is the perfect time to take advantage of these tax incentives and turn your real estate dreams into reality. Explore our listings today and contact us for personalized support!
