Luxembourg Tax Reform For Residential Real Estate

To counter the issue of rising property costs due to a lack of homes and constructible lots, a new tax reform has been enacted on January 1, 2017. Banque International à Luxembourg has made available this handy summary of the details of this reform here. In brief, a seller can save money through the reduction of the capital gain tax to a quarter of the global income tax rate. For buyers, there have been put in place several interest reductions on mortgages. I encourage you the read this article put together by Mr. Pierre Clément of NEXVIA.

By | 2017-02-22T16:34:13+00:00 February 22nd, 2017|Buyers, Financing, Luxembourg Real Estate|0 Comments

The emphyteutic lease

The emphyteutic lease is a measure of the Ministère des Classes moyennes, du Tourisme et du Logement, which reduces the cost of housing. The buyer of a dwelling will own the home only, not the land. The latter is leasing the land on which the home is built for a maximum of 99 years. becomes the owner of the dwelling but on the other hand he leases the land on which the building is built for a maximum of 99 years. This rent is paid annually. In the event of the sale of the home, the lease continues to run for the remaining years. At the end of the lease agreement, there are two possibilities. Either the lease is extended between the Société Nationale des Habitations at Bon Marché and the owner of the accommodation, or the former redeems the building and pays market value, which is determined by experts, to the owner. If you'd like to read more on this topic, you can download this helpful PDF here.

By | 2017-02-12T14:44:28+00:00 February 19th, 2017|Buyers, Financing, Luxembourg Real Estate, Marco's Articles, Sellers|0 Comments

Latest Housing Statistics For Luxembourg

If you're interested in knowing more about the latest housing figures for apartment sales, click here to view the latest report from "l'observatoire de l'habitat".

By | 2017-02-16T06:16:59+00:00 February 16th, 2017|Buyers, Financing, Luxembourg Real Estate, Sellers, Uncategorized|0 Comments

Financial Aid For Homebuyers In Luxembourg

For the purchase of your home in Luxembourg, you can benefit from the following financial aids, interest reductions and tax benefits. 1. A subsidy for home acquisitions The amount of this subsidy is calculated on the basis of your income and your family status, provided that you are the first occupant of the dwelling. You can only benefit from this aid once. 2. A savings credit This aidt is allocated under certain conditions and is only awarded to you once. 3. A governement guarantee for home loans The government guarantees your mortgage in case you don’t have the funds to do so yourself. 4. An Interest rate reduction A reduction in interest rates will reduce your monthly mortgage payments. This reduction is only awarded once and under certain conditions. 5. An Interest rate reduction for public officials This interest rate reduction, which lowers monthly mortgage payments, can be applied for by government officials only. 7. Tax benefits for home purchases, including: Interest rate reduction for home financing Reduction of the interest expense of the building, if your building is not yet occupied Reduction of social security contributions and insurance premiums Reduction of home-purchase contributions Tax credit (Bëllegen Akt) For more information, please visit the following [...]

By | 2017-02-15T08:02:44+00:00 February 15th, 2017|Buyers, Financing, Luxembourg Real Estate|0 Comments

3 Tips For Home Buyers

So you’ve saved up some money and can’t wait to buy your new home. Before you line up your home visits though, it’s best to get prepared so you won’t run into trouble along the way. Tip #1: Go have a talk with your banker You will likely waste a lot of time if you start looking for a home, only to find out later that the homes you were looking at don’t fit in your budget. Yes, a banker will not get you a bank loan if you don’t have a purchase contract signed, but they can give you an idea of what budget you can expect. There are even handy online calculators such as this one, which let you figure out how much house you can afford. Knowing whether to sell your home first before looking for a new one, or buying the new one first before ditching the old one is always a popular topic of discussion. Your banker can help here as well. Tip #2: Figure out what you want There are many clients that start looking before they even know what they want. And granted, it’s not always easy to know exactly what you want. But you could start by [...]

By | 2018-02-22T11:58:04+00:00 February 15th, 2017|Buyers, Luxembourg Real Estate, Marco's Articles|0 Comments

The Energy Pass

In Luxembourg, all residential buildings are given energy ratings. What is an Energy Pass? The Energy Pass is a certificat that provides information on energy consumption and CO2 emissions of a building. The ratings go from A (best) to I (worst). When do you need to get an Energy Pass? As owner of a home, you’ll need to get an Energy Pass done when: when you make substantial transformation to a building there is a change of owners and an Energy Pass has not been done for the building. All public ads of a sale of a building must mention its energy rating as well as its thermal insulation rating. For more information, please visit

By | 2017-02-12T14:20:25+00:00 February 12th, 2017|Buyers, Luxembourg Real Estate, Marco's Articles, Sellers|0 Comments

BIL Online Tools

Dear home buyers, I want to point you to a set of financial tools the Banque Internationale à Luxembourg has made available to its customers, many of which aren't aware of their existence, unfortunately. I know it can be exciting to start your search for a new home by immediately visiting as many homes as you can, but I would encourage you to pause for a moment and think about your finances first. Many home buyers get frustrated because they've made several offers and still came up empty handed. The issue is often that people neglect to talk to the bank before they go shopping for a home. Think about it from the perspective of an agent for a moment; After you make an offer, the agent will have to go present the offer to the seller and convince this person that you are the ideal buyer. They will have to accept the amount of money you offer but they also have to relatively sure that you have the money or that you will be given the necessary financing by your bank. This can only be done with a set of solid arguments, the best of which is a bank certificate saying that you can [...]

By | 2017-01-22T15:48:07+00:00 January 22nd, 2017|Buyers, Financing|0 Comments