Positive News for the Real Estate Sector: Reduced Registration Fees in Luxembourg.

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👆 Positive News for the Real Estate Sector: Reduced Registration Fees in Luxembourg.

On October 1, 2024, a significant change will take place in the Luxembourg real estate market, thanks to a recent announcement by Finance Minister Gilles Roth (CSV) during the presentation of the state budget for 2025.

Between October 1, 2024, and June 30, 2025, the registration fees for the acquisition of real estate will be halved from 7% to 3.5%.

Property purchase

This measure applies to both existing properties and sales in future state (VEFA), provided the purchase concerns a primary residence. Furthermore, it will only apply to VEFA purchases made by investors.
The Chamber of Trades has welcomed this decision, recognizing its importance in the competitive landscape of the construction sector.

In addition to this recent announcement, the existing "Bëllegen Akt" measures related to housing will remain in effect until December 31, 2024.
This means that buyers can continue to benefit from reduced registration fees and tax credits for registration costs. For individuals purchasing a primary residence, the "Bëllegen Akt" currently provides a tax credit of €40,000 per person, or €80,000 for couples.

However, it's essential to note that starting January 1, 2025, the "Bëllegen Akt" will decrease to €30,000 per person for primary residence buyers, and the investor benefits will cease entirely.

A real Example by Langlais&Langlais Real Estate: Property Purchase Calculation

To illustrate these changes, let’s consider a couple interested in purchasing the apartment located at Rue Marie-Adélaïde in Luxembourg City. This beautiful apartment is priced at €625,000 and offers modern amenities, making it a perfect choice for a couple:

https://www.langlais.lu/fr/estate/estate-6210684

Assuming the couple signs the sales agreement on or after October 1, 2024, the registration fees will be calculated at 3.5%, amounting to:
625,000×0.035=21,875 €

Since they are purchasing as a couple, they qualify for the "Bëllegen Akt" tax credit of €80,000, which exceeds the registration fees. Therefore, the couple will not have to pay any registration fees out of their pocket.

Conclusion

These recent changes in registration fees and the continuation of the "Bëllegen Akt" present a unique opportunity for prospective buyers.Now is the perfect time to take advantage of these beneficial measures before they expire.