The Luxembourgish government, represented by Prime Minister Luc Frieden, Housing and Spatial Planning Minister Claude Meisch, and Finance Minister Gilles Roth, has announced several measures aimed at stimulating the real estate sector.
Housing Construction: The government recognizes the natural phenomenon of residents moving to France or Belgium and aims to build quickly to accommodate the population's growth. The goal is for everyone to find housing in Luxembourg.
Simplification of Procedures: Administrative procedures will be streamlined to accelerate housing construction. The search for suitable land will be discussed in collaboration with municipalities.
Public-Private Investment: The state aims to develop the supply of affordable housing with an additional budget of 480 million euros dedicated to acquiring homes in the Sale in Future State of Completion (VEFA). In total, 923 million euros will be allocated over the next four years.
Tax Relief: Tax relief measures will be introduced, including an increase in tax exemption for the sale of land to the Housing Fund. Family allowances will also be increased.
Tax Credit: The tax credit on notarial acts ("Bellegen Akt") will increase from 30,000 to 40,000 euros per household in 2024. A "location" tax credit of 20,000 euros per individual will be introduced. The capital gains tax rate will be reduced to 10% in 2024 for acquisitions of housing for social rental management.
Youth Support: Young people up to the age of 30, earning a maximum salary of 7,550 euros, will be eligible for a rent subsidy of 1,000 euros from their employer, representing a net increase of 100 euros per month.
National Housing Meeting: A national housing meeting is scheduled for February 22 to discuss measures to revive the construction sector.
These measures aim to revive construction, make housing more affordable, and support residents, craftsmanship, and the construction sector. The government emphasizes the importance of acting quickly to boost the real estate sector.
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