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Booster fir de Wunnengsbau: 7 measures to make housing (a little) more affordable
Luxembourg's new Booster fir de Wunnengsbau: Bëllegen Akt up to €45,000, 8% VAT, accelerated depreciation. We break down the 7 housing measures for 2026.
On 16 July 2026, two ministers, Claude Meisch (Housing) and Gilles Roth (Finance) unveiled the "Booster fir de Wunnengsbau". The slogan translates roughly as: build more, make it more affordable, deliver more homes.
Behind the wordplay sit seven concrete measures. Some soften the bill when you buy. Others make rental investment feel less daunting. And for the first time, a few tax perks come with social strings attached. We read the press release so you don't have to. Here's what actually matters.
The 7 measures, minus the jargon
1. Lower registration duties on new builds. Buying off-plan (VEFA) a home that's still under construction, no more than 80% complete, to live in as your main residence? Registration and transcription duties will be charged on the land value only, not on the building. It applies to deeds signed from 16 July 2026, for three years.
2. The Bëllegen Akt rises to €45,000. The tax credit on the notarial deed goes from €40,000 to €45,000 per person. In practice, a single buyer can aim for a property worth around €640,000 without paying a cent in registration duties. As a couple, you're closing in on €1.3 million. In force since 16 July 2026.
A quick calculation
Registration and transcription duties on a main residence come to 7%. A €45,000 credit therefore covers roughly €640,000 of purchase price (€45,000 / 0.07). Two buyers stack their credits, that's €90,000, and close to €1.3 million exempt.
3. 8% VAT for social rental housing. A new reduced rate of 8% (instead of the usual 17%) for building rental housing with a social purpose. In return, the conditions are strict: 120 m² maximum, a price per m² no higher than the regional median published by the Observatoire de l'habitat, rental yield capped at 4%, let for at least ten years, and rented to a tenant certified as eligible by the ministry. The idea: encourage affordable rental building, without subsidising the high end.
4. Accelerated depreciation: 6% for 6 years. The new regime follows a "three times six" principle. Investing in rental property? You depreciate 6% a year for 6 years, as long as the depreciable base stays under €600,000 per building. Above that, the rate drops to 2% on the whole base, with no time limit. For purchases made in 2026, you choose between the old regime and the new one. From 1 January 2027, the new regime becomes the only option for new acquisitions.
5. Housing Bond: your savings fund housing. After the success of the Defence Bond, the State is launching a €250 million citizen bond dedicated to affordable housing. Good to know: the interest escapes the 20% final withholding tax. Launch expected in early 2027.
6. Housing aids revised upwards. For young buyers aged 35 or under, the loan ceiling used to calculate the interest subsidy climbs from €200,000 to €300,000. For all households, that same ceiling rises from €200,000 to €250,000, with the top-up per dependent child going from €20,000 to €30,000 (up to €370,000 in total). The cherry on top: under-35s buying an affordable home can now claim the home-purchase premium and the savings premium (prime d'accession and prime d'épargne), until now reserved for the private market.
7. The State buys to get sites moving. The State is putting another €300 million on the table to acquire homes off-plan (VEFA). What's new: it can now buy just part of a project. By stepping in early, it acts as an "anchor buyer", helps developers reach the pre-sale threshold banks require, and so unlocks the start of construction. For the record, the first €480 million envelope secured or reserved 830 affordable homes.
And for your tax return, what changes?
These measures aren't only about buying. Several touch your taxes directly. Accelerated depreciation is declared on your rental income. Housing Bond interest escapes the withholding tax. And if you become an owner, your next tax return won't look like your last one.
The taxx advantage
Investing in rental property? On taxx.lu, everything is worked out automatically as you go, rental income and depreciation (form 190) included. Not sure how it applies to your situation? Our support and verification team helps or checks your file, so it's filed correctly and you actually understand where you stand.
Worth keeping in mind
None of this is set in stone yet. The higher Bëllegen Akt and the VEFA exemption take effect on 16 July 2026: for a deed signed before the law comes into force, a request to the Registration Duties, Estates and VAT Authority (AED) lets you claim the benefit. The 8% VAT and the new depreciation regime, though, only apply once the law is passed. Amounts and conditions may still change during the legislative process.
Source: joint press release from the Ministry of Finance and the Ministry of Housing and Spatial Planning, 16 July 2026.
