Adjusting Conditions for Buyers in Luxembourg

On June 2, 2025, Finance Minister Gilles Roth presented a draft bill aiming to adjust the access conditions for temporary tax benefits, initially established by the law of May 22, 2024. This adjustment seeks to provide greater flexibility for buyers facing tight administrative deadlines to finalize their transactions before June 30, 2025.

Objective of the Adjustment

Due to the high volume of ongoing cases, banks and notaries are overwhelmed, which could prevent many households from signing their notarial deeds in time to benefit from the planned tax measures. The government therefore proposes a flexibilization of eligibility conditions without altering the June 30, 2025, deadline.

New Eligibility Modalities (Draft Bill)

To qualify for the temporary tax benefits, it will no longer be necessary for the notarial deed to be signed before June 30, 2025. It will suffice for one of the following documents to be registered with the AED (Administration de l'enregistrement, des domaines et de la TVA) by June 30, 2025, at the latest:

• A signed preliminary sale agreement (compromis de vente)
• A signed reservation contract within the framework of a sale in the future state of completion (VEFA)

The notarial deed must then be signed between July 1, 2025, and September 30, 2025, for the tax benefits to be maintained.

Tax Measures Concerned by This Adjustment

• The rental tax credit of 20,000 euros per individual
• The halving of the taxable base for registration and transcription duties
• Accelerated depreciation at 6%
• Taxation of capital gains at one-quarter of the global rate
• Exemption from capital gains tax in case of transfer to properties used for social rental management or residential buildings reaching A+ energy performance level

Conclusion

The government maintains the June 30, 2025, deadline but introduces a flexibility measure: taxpayers must simply register a written commitment (preliminary sale agreement or VEFA contract) before this date to retain the right to tax benefits upon the subsequent signing of the notarial deed.