Great news for buyers looking to finalize their property purchase: the Luxembourg government has announced the extension of key tax incentives initially set to expire at the end of 2024.
A Surprising Reversal
Just weeks ago, Housing Minister Claude Meisch confirmed that the tax measures would not be extended beyond 2024. However, after consultations with banks, notaries, and property developers, the government decided to continue these initiatives to maintain the momentum in the real estate market.
Extended Until July 2025
Prime Minister Luc Frieden confirmed that incentives such as the enhanced Bëllegen Akt, Bëllegen Akt for rental investors, 6% accelerated depreciation, and reduced capital gains taxes will now remain valid until July 1, 2025. A new law will be introduced in January to formalize the extension, with retroactive application from January 1, 2025.
Supporting a Recovering Market
Economic Growth on the Horizon
The Prime Minister expressed optimism that this momentum will contribute to Luxembourg’s broader economic recovery, with growth projections nearing 2% as early as next year. He highlighted the unique opportunities in Luxembourg compared to neighboring countries, particularly with rising demand in the new housing sector.
Last Chance to Take Advantage
Luc Frieden made it clear that there will be no further extensions after July 2025. This timeframe allows the real estate sector to adjust to the increased demand and gives buyers the chance to benefit from these financial incentives before they expire.
If you’re considering purchasing property in Luxembourg, now is the perfect time to take advantage of these extended tax benefits and secure your investment in a thriving market! Explore our listings now!
