Luxembourg: Transitional regime proposed for 2024 housing package tax measures
The government introduced a bill to extend temporary tax measures set to expire on June 30, 2025.
The government introduced a bill to extend temporary tax measures from the 2024 housing package, set to expire on June 30, 2025.
The bill proposed a transitional regime for transactions registered by June 30, 2025, allowing certain tax benefits until September 30, 2025.
It also would make the "Bëllegen Akt" tax credit permanent at €40,000 and included provisions for tax-neutral transfers and reduced taxable bases for registration duties on rental property acquisitions.
Subject to meeting specific conditions, the acquisition documented by a registered preliminary sales agreement or a registered property reservation contract concluded before July 1, 2025, and formalized by a notarial deed concluded between July 1, 2025, and September 30, 2025, may still benefit of the new Bëllegen Akt tax credit for real estate investment. Furthermore, to qualify, the purchaser must undertake to let the property for a minimum period of two years within four years.
For more information, contact a KPMG tax professional in Luxembourg:
Frederic Scholtus | frederic.scholtus@kpmg.lu
Xavier Martinez | xavier.martinez@kpmg.lu
Sacha Thill | sacha.thill@kpmg.lu