Boosting the real estate sector and promoting home ownership by expanding access to a greater number of singles and families in Luxembourg: these were the two measures announced as priorities by the government of Luc Frieden (CSV) even before its entry into office. In February, the government introduced a number of measures in this direction, with retroactive effect from January, some of which have a particular character and expire on December 31, 2024.
The Minister of Housing, Claude Meisch (DP), confirmed this Wednesday RTL that there will be no extension of the special measures in force this year.
Aid that ends on December 31
Notarial deeds. The tax credit for notarial deeds in connection with the purchase of housing was increased from 30,000 euros to 40,000 euros per household member in February, exclusively for the purchase of housing. “For example, a person does not pay registration and transcription fees for the purchase of real estate with a maximum value of 571,000 euros,” the government decided. The same goes for a couple who buys real estate at a maximum price of 1,142,000 euros. From January 1, 2025, this tax credit will amount to a maximum of 30,000 euros.
Capital gains tax. Since February, a natural person, that is to say an individual, must only pay 10%, compared to 20% previously, of the capital gains made during the sale of real estate or land. From 2025, the measure ends and the 20% becomes payable again. Also exempt from capital gains tax are transfers of properties with an A+ energy class, an environmentally friendly measure, as well as houses transferred to social rental management and land transferred to the Social Housing Fund.
Accelerated depreciation. Accelerated depreciation has been increased to 6% per year for six years and applies exclusively to new assets, with a ceiling of 250,000 euros.
House for rent. Anyone who buys real estate to rent it out benefits from the “Bëllegen Akt” tax credit of 20,000 euros per individual, or 40,000 euros per couple. Businesses are excluded from this aid. This credit is only intended for sales in a future state of completion (VEFA), and the buyer is required to rent the property for at least two years.
“We obviously cannot extend them. Those who want to benefit from this aid must do so now,” stressed Claude Meisch at the microphone of RTL. The minister also declared that the State had “taken its responsibilities” by offering a wide range of assistance for the purchase of housing.
This article was originally published on the website Contact.
Adaptation: Antony Speciale
