The "Bëllegen Akt" tax credit in

Buying property in Luxembourg remains a major financial commitment, and notary costs — especially registration and transcription duties — represent a substantial part of the total budget. To support access to home ownership, the Luxembourg State has introduced a mechanism called "Bëllegen Akt" (literally "cheap deed"), which takes the form of a tax credit applied directly at the signing of the authentic deed.

With law n° 8540 voted by the Chamber of Deputies, the credit cap has been raised from €30,000 to €40,000 per person. Here is what changes in practice, who qualifies, and how to compute the real gain on your purchase.

1. What is the Bëllegen Akt exactly?

The Bëllegen Akt is neither a price reduction nor a cash subsidy: it is a credit applied against the registration and transcription duties owed when buying a property. In Luxembourg these duties amount in general to 7 % of the purchase price (6 % registration + 1 % transcription), plus a municipal surcharge in certain communes.

The Bëllegen Akt credit is deducted directly from this 7 %, up to a cap now set at €40,000 per individual buyer. For a buying couple, the combined cap therefore reaches €80,000.

2. Eligibility conditions

To benefit from the Bëllegen Akt, several conditions must be met:

The buyer must be an individual person (companies are excluded).
The property must be intended as the primary residence of the buyer.
The buyer must commit to occupying the home within 2 years following the deed signature (4 years for an off-plan VEFA purchase).
Occupation must be maintained for at least 2 years.
The credit can be used only once in a lifetime, but any unused balance remains available for a future purchase until the cap is reached.

If these conditions are not met — for example in case of a quick resale or non-occupation — the tax authority can claim the credit back.

3. How the calculation works in practice

The notary applies the credit automatically when preparing the cost statement, provided the buyer submits the required documents (signed form, occupation declaration on honor, future certificate of residence).

The rule is simple: compute the duties owed at 7 %, then deduct the available credit, capped at the actual duties due.

4. Worked examples by buyer profile

Example 1 — Single buyer, €500,000 apartment

Purchase price: €500,000
Registration and transcription duties (7 %): €35,000
Available Bëllegen Akt credit: €40,000
Credit applied: €35,000 (capped at actual duties)
Remaining duties to pay: €0
Remaining credit balance for a future purchase: €5,000

Example 2 — Married couple, €850,000 house

Purchase price: €850,000
Duties at 7 %: €59,500
Combined couple credit: €80,000
Credit applied: €59,500
Remaining duties to pay: €0
Combined remaining balance: €20,500

Example 3 — Single buyer, €1,200,000 property

Purchase price: €1,200,000
Duties at 7 %: €84,000
Available credit: €40,000
Remaining duties to pay: €44,000
Remaining balance: €0

Example 4 — Couple, VEFA purchase at €950,000

Purchase price: €950,000
Duties at 7 %: €66,500
Combined credit: €80,000
Credit applied: €66,500
Remaining duties to pay: €0
Combined remaining balance: €13,500, usable for a future purchase

5. Practical steps: what you need to prepare

The advantage of the Bëllegen Akt is that it is fully handled by the notary. You have no formality to complete with the tax authority. In practice you must:

Inform the notary at the signing of the compromise that you intend to use the credit.
Sign the occupation declaration attached to the deed.
Provide identity documents and any previously used credit balance from an earlier purchase.
Move in within the legal deadline and keep supporting documents (electricity invoices, certificate of residence) in case of later audit.

6. What really changes in 2025

Raising the cap to €40,000 is a direct response to the price increases observed in recent years. For a first-time buying couple acquiring at €800,000, the immediate gain rises from €56,000 (former couple cap €60,000) to a cap sufficient to absorb the duties entirely. For buyers of premium properties between €1M and €1.5M, the gain remains significant without covering all costs.

Conclusion

The Bëllegen Akt is one of the most advantageous mechanisms in the Luxembourg real estate market. Properly used, it can fully neutralize the registration fees on a primary purchase, or significantly reduce the entry ticket for first-time buyers.

At Alfa Immobilier, we support every buyer with a precise simulation of the expected gain, in coordination with your notary. Contact us for a tailored estimate of your project and a detailed calculation of your available credit.

The "Bëllegen Akt" tax credit in Luxembourg: complete 2025 guide