Tax Measures extended in the real estate sector

The Government Extends and Adapts Tax Measures for Housing and Announces New Initiatives

Prime Minister Luc Frieden announced on Friday, December 6, the extension of tax incentives to support the housing sector until June 30, 2025. This decision contrasts with earlier statements by Housing Minister Claude Meisch, who had declared that these measures would not be renewed beyond December 31.

According to Luc Frieden, the housing sector is showing signs of recovery, with growing demand, especially at the end of the year, and buyers waiting to finalize transactions. To sustain this momentum, the government decided to extend the measures, which have proven effective.

Extended Tax Measures

The main measures include:

• The “Bëllegen Akt” tax credit, increased to €40,000 per person for the purchase of a primary residence.

• A tax credit of €20,000 per person for investments in rental housing under construction (VEFA).

• Reduced capital gains tax on property sales, maintained at 10% instead of 20%.

• Accelerated depreciation at 6% per year for six years, applicable to rental properties.

These measures are extended temporarily to maintain momentum in the sector, as a permanent solution might hinder this dynamic, the Prime Minister explained.