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Luxembourg: Increased depreciation for energy renovations of rental dwellings

Effective from 2026 tax year

april 21, 2026

The government on February 13, 2026, adopted a Grand-Ducal Regulation amending the rules under article 106 of the Income Tax Law to increase the accelerated depreciation rate for investment expenses related to sustainable energy renovations of rental dwellings from 6% to 10%, effective from the 2026 tax year.

The measure applies to energy efficiency renovations benefiting from subsidies granted under the Law of December 23, 2016, allowing faster deduction of eligible costs when computing taxable rental income.
 

For more information, contact a KPMG tax professional in Luxembourg:

Sophie Boulanger | sophie.boulanger@kpmg.lu

Jean Kizito | jean.kizito@kpmg.lu

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