Relaunch of the real estate market in 2024

The Luxembourgish government has recently unveiled a set of measures for buyers and investors in the year 2024. These initiatives are designed to stimulate the real estate market and encourage buying, investing, and construction in Luxembourg.

Measures to support buyers

For primary residence buyers, the Bëllegen Akt has been increased by €10,000, reaching €40,000 per person compared to the previous €30,000.

The limit for deductible interest have also been raised, providing households with increased opportunities to optimize their tax deductions.

Furthermore, an exemption from capital gains tax in the case of selling to the Housing Fund has been introduced. For investors, a new tax credit, the “Bëllegen Akt investisseurs,” of €20,000 per natural person, has been introduced. This credit is intended for investors acquiring property off-plan (VEFA) for rental purposes.

Benefits for investors

Tax advantages for investors include an increase in the accelerated depreciation rate and the amortization period, as well as a reduction in the real estate capital gains tax rate.

Lastly, a 90% exemption from income tax is provided if a property is put under social rental management.

An opportunity for the real estate market

These measures create a unique window of opportunities for buyers and investors. These robust fiscal incentives are valid only in 2024 and could positively impact the Luxembourgish real estate market.

Thanks to the retroactivity of these measures, any buyer or investor can benefit from these advantages for any purchase made from January 1, 2024 onward.