New 2024 measures introduced by the government

To keep the Luxembourg property market buoyant, the government has introduced a number of incentives for both first-time buyers and investors.

So whether you're a buyer looking for your main residence or an investor looking for a bargain, these measures could help you complete your project. Find out more about the support available.

Good news for future homeowners! The amount of Bëllegen Akt has been increased from €30,000 to €40,000 per person for 2024. This substantial increase applies exclusively to the purchase of a principal residence, and is a valuable way of reducing the overall cost of the purchase. As it is not certain that this amount will be renewed in 2025, this could be the time to take advantage of it!

The tax advantage has also been extended with an increase in the ceiling on deductible interest. From now on, each member of the household can deduct up to €4,000 a year, compared with €3,000 previously. For a family of four, this represents a tax saving of between €12,000 and €16,000 a year.

What's more, the ceiling on deductible interest after six years has been raised to €3,000 (from €2,250) and after ten years to €2,000 (from €1,500), offering lasting benefits well beyond 2024.

If you sell your property to the Fonds du logement, you now benefit from a total exemption from capital gains tax, a significant tax break when you resell.

Investors are not left out. A new tax credit, the "Bëllegen Akt investisseurs", of €20,000 per individual, has been introduced. This credit is intended for people buying a VEFA (Vente en l'Etat Futur d'Achèvement) property as part of a rental investment. The condition is that the property must be let for at least two years.

Accelerated depreciation becomes even more advantageous. The rate rises to 6% over six years for properties purchased off-plan and let out to tenants. The annual ceiling for this benefit is set at €250,000, providing a substantial tax deduction.

The rate of tax on capital gains is reduced to a quarter of the overall rate, i.e. around 10% instead of 20%. To qualify, the property must be held for at least two years.

Lastly, by placing your property under social rental management, you can benefit from a 90% tax exemption on the net income earned, an incentive to encourage social rental.

Experts predict that these measures could speed up the recovery of the property market. Don't miss this opportunity to benefit from favourable conditions and substantial financial support.

For more information on these tax incentives, please contact LUXKREDIT. 2024 is not over yet, and it could well be the year when your property projects come to fruition.

You are looking for tailor-made advice and support from financial professionals, you want to save time... we take care of all the steps for you to carry out your project in the best market conditions. Send us your request with a few clicks and we will take care of the rest!