The “Booster fir de Wunnengsbau” is now underway!

Find a summary of the measures introduced under the “Booster fir de Wunnengsbau“, together with practical examples illustrating their impact, in the document below.

These seven measures have been designed to give new momentum to your real estate projects and create more favourable conditions for purchasing your future home.

Now may be the perfect time to bring your property plans to life. Discover our currently available properties here.

Press release from the Ministry of Finance and the Ministry of Housing and Spatial Planning

The Minister for Housing and Spatial Planning, Claude Meisch, and the Minister of Finance, Gilles Roth, have unveiled the new “Booster fir de Wunnengsbau” package. This government initiative aims to sustainably revive residential construction, support homeownership and strengthen the supply of affordable housing in Luxembourg.

Guided by the motto “Méi bauen. Méi erschwénglech. Méi Wunnengen.” (“Build more. More affordable. More homes.”), the package combines financing, investment and construction measures to provide practical and long-lasting solutions to citizens’ primary concern: housing.

Claude Meisch stated: “For the first time, housing tax measures are linked to social criteria. They will encourage the creation of more affordable rental housing. By strengthening interest subsidies, we are also supporting young people and young families in their homeownership projects. These measures open up new opportunities and represent a tangible investment in the future of our country.”

A top government priority

Gilles Roth added: “Housing is citizens’ number one concern. It is also a top priority for the Government and for me personally. With this ‘Booster fir de Wunnengsbau’, we are implementing a coherent package of measures combining tax relief, investment incentives and the mobilisation of private savings to make housing more accessible for everyone.”

The seven measures of the “Booster fir de Wunnengsbau”

1. Temporary exemption from registration and transcription duties on the construction portion of a home intended as a principal residence (up to 80% completion).
2. Increase of the “Bëllegen Akt” tax credit to €45,000 per person.
3. Reduced 8% VAT rate for socially oriented rental housing.
4. New accelerated depreciation scheme of 6% over 6 years for qualifying rental investments.
5. Introduction of the Housing Bond, a €250 million citizen bond to support affordable housing.
6. Enhanced individual housing assistance, including:
   • increased interest subsidies for young first-time buyers;
   • improved housing grants for all households;
   • extension of homeownership grants to young buyers of affordable housing.
7. Expansion of the State’s VEFA acquisition programme with an additional €300 million, including greater flexibility through partial acquisitions of residential developments.