The residential market in Luxembourg remains particularly attractive. Indeed, tax regulations have a significant advantage for investors: tax credit on notarial acts.
In Luxembourg, the acquisition of a real estate (house, apartment or building plot) goes hand in hand with the payment of registration fees and transcription fees. Overall, these fees account for 7%, which include 6% for registration fees and 1% for transcription fees.
The government introduced a deduction called tax credit on registration fees and transcription fees for all people who want to acquire a real estate for personal use. The existing law limits this tax credit to 20.000 euros and 40.000 euros for a pair. This envelope can be used on one or several real estates.
Tax credit is subject to several conditions as follows:
Therefore, secondary residences, weekend homes and real estates for rental and commercial use are not coveted by the tax credit.