End of Tax Incentives in Luxembourg on 30 June

The 30th of June is fast approaching, marking the end of several advantageous tax measures introduced by the Luxembourg government to support property investment. While this deadline may be a concern for some, it is above all an opportunity to seize quickly for those wishing to move forward with their property projects. To benefit from these measures, a preliminary sale agreement must be signed and registered before 30 June. You will then have until the end of September to sign the notarial deed and secure your financing.

Which Tax Measures Are Affected?

As of 1 July 2025, several fiscal incentives will come to an end, including:

• Buy-to-let investment tax credit: up to €20,000 per person for the purchase of a property off-plan (VEFA – sale in future state of completion) intended for rental for a minimum of two years.
• Reduced registration fees: currently at 3.5% instead of the usual 7% for the purchase of a main residence and for investors buying off-plan.
• Accelerated depreciation: exceptional rate of 6% per year for six years for off-plan rental properties, capped at €250,000.
• Reduced capital gains tax on property sales: reduced rate of 10% instead of 20%, with the minimum holding period reduced to two years.

Current Status of the “Bëllegen Akt”

The “Bëllegen Akt” tax credit has been temporarily increased from €30,000 to €40,000 per person for the purchase of a main residence. This increase applies to notarial deeds signed between 1 January 2024 and 30 June 2025.

A draft law (No. 8540) aimed at making the €40,000 amount permanent is currently under review. If adopted, the €40,000 tax credit will become a permanent measure.

What This Means for You

• Until 30 June 2025: You can benefit from the €40,000 tax credit for the purchase of a main residence, provided that the notarial deed is signed before this date.
• After 30 June 2025: If the law is passed, the €40,000 amount will remain in place permanently. Otherwise, the credit may revert to €30,000.

Why You Should Act Before 30 June

By taking advantage of these tax incentives now, you can secure significant savings on the total cost of your property investment.

Once these measures expire, costs will inevitably increase. Acting now allows you to optimise your long-term budget.

What’s more, avoid last-minute administrative bottlenecks! The closer the deadline, the more likely it is that application processing will slow down. Planning ahead ensures a smoother and more efficient process.

LuxKredit’s Recommendations

To make the most of these final weeks of tax advantages, we recommend the following:

• Check your eligibility quickly: contact our experts to confirm that you qualify for the tax benefits before the deadline.
• Make a prompt but informed decision: if you already have a specific project in mind, now is the time to move forward!
• Request a personalised simulation: we offer detailed, tailored simulations based on your specific situation to clearly illustrate your potential savings.
• Get guidance from experts: our independent brokers will advise you on the best solutions, taking tax changes into account.

The end of tax incentives in Luxembourg is a key deadline – but also a real opportunity for your property investment.

LuxKredit is here to support you during this decisive stage. Contact us today to take full advantage of these measures before 30 June 2025!

 

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