Applying for State financial aid to purchase or construct a dwelling (purchase or construction subsidy)
Last update
State financial aid can be requested to buy or build a home. The amount of this subsidy depends on your income and your family situation, and can vary between EUR 500 and EUR 10,000.
If the dwelling concerned is a commonhold property or a terraced house, the subsidy is increased by 40 %. If it is a semi-detached house, the subsidy is increased by 15 %.
The eTracking function for hardcopy (paper) forms is a feature of this process. This feature enables users to stay informed about the advancement of their applications by email and/or by SMS.
Who is concerned?
If you have taken out a mortgage loan to purchase an existing property or to build a new one in Luxembourg that you use as your principal and permanent residence, you can apply for the home ownership incentive (prime d’accession à la propriété).
Prerequisites
In order to qualify for the subsidy, you must:
- be a natural person of legal age on the date of the application;
- be authorised to legally reside in Luxembourg, be domiciled there, and effectively live there;
- have taken out a mortgage loan with a financial institution to acquire or build a home in Luxembourg that will be your actual, principal and permanent residence for at least 2 years;
- have full and exclusive ownership of the property;
- satisfy certain conditions relating to income and family status; and
- own no other property in Luxembourg or abroad.
The dwelling itself must:
- be your principal and permanent residence; and
- have its own cadastral designation; and
- not be intended for sale in the context of affordable housing (vente abordable) or housing at moderate cost (vente à coût modéré).
How to proceed
Filing the application
If you wish to benefit from the subsidy, you must fill in and sign the specific form (see 'Forms / Online services') and return it together with the required documents to the Single point of contact for housing assistance:
- at the latest one year from the date on the authentic deed documenting the purchase of the dwelling; or
- in the event of a sale of property under construction (vente en état futur d’achèvement), no later than one year from the date of the authentic deed.
If you are managing the construction of the dwelling yourself, the date taken into account is the date on which you declared the start of construction work to the mayor.
If you are married or in a civil partnership, the form must also be signed by your spouse or partner.
This double signature is no longer required if you have initiated divorce proceedings or taken steps to terminate the partnership. In the event of divorce, you must attach to your application a copy of the deed of settlement and partition, which stipulates that the property is allocated to you.
Supporting documents
You must include the following documents with your application:
- a copy of your identity document;
- a declaration, duly dated and signed by yourself, concerning the composition of your household;
- a copy of the authentic deed of purchase of the property or the authentic deed in the case of a sale of property under construction (vente en état futur d’achèvement);
- a mortgage loan data certificate;
- a declaration of honour signed by yourself certifying that the members of your household have no other property in Luxembourg or abroad;
- documents providing proof of the household income; and
- if you are a foreign national, a certificate attesting to your right of residence.
Consideration of family status
To determine the amount of the subsidy, the existing situation on the date of the authentic deed documenting the purchase of the dwelling, or the authentic deed in case of sale of property under construction are taken into account.
If you are managing the construction of your home yourself, the date taken into account is the date on which you submit the declaration of start of construction work to the mayor.
If a child is born in the year following that date, the subsidy may be re-examined on the basis of this change in family status.
You must also immediately inform the administration of any change that could affect the granting, maintenance, modification or withdrawal of the aid, failing which you may be required to reimburse the aid retroactively.
Consideration of income
The income taken into account for calculating the home ownership incentive is the average income during the 2 calendar years preceding the authentic deed documenting the purchase of the dwelling or of the sale of property under construction.
If you are managing the construction of your home yourself, the date of declaration of the beginning of the construction work to the mayor is taken into account when calculating the 2-year period.
If your household has had no income during the year preceding one of these dates, the home ownership incentive cannot be granted.
If your household has only had an income during the calendar year of one of these dates and the previous calendar year, the income taken into account is the average of these 2 calendar years.
Your household's net monthly income is calculated by taking into account:
- the net income, after deduction of social security contributions and actual taxes withheld;
- maintenance payments received (maintenance payments paid are deducted from income);
- net accident annuity amounts;
- gross earnings paid for overtime hours.
You must immediately inform the minister of any change that could affect the granting, maintenance, modification or withdrawal of the aid, failing which you may be required to reimburse the aid retroactively.
Amount of the subsidy
The amount of this subsidy depends on your income and your family situation, and can vary between EUR 500 and EUR 10,000.
If the dwelling concerned is a commonhold property or a terraced house, the subsidy is increased by 40 %. If it is a semi-detached house, the subsidy is increased by 15 %.
Short-term compensatory subsidy
The home ownership incentive is increased by a short-term compensatory subsidy of EUR 20,000 if you purchase/have purchased the property between 1 September 2023 and 31 December 2024.
The short-term compensatory subsidy is only granted for newly built homes that have not been occupied yet.
If you are managing the construction of your home yourself, the construction work must start between 1 September 2023 and 31 December 2024.
Reimbursement of the subsidy
The dwelling for which you have been granted the home ownership incentive must be your principal and permanent place of residence for at least 2 years from the date of the 1st aid payment, failing which the subsidy must be reimbursed.
If the applicant leaves or sells the dwelling before the end of the 2-year period, the subsidy must be reimbursed.
You must also immediately inform the minister of any change that could affect the granting, maintenance, modification or withdrawal of the aid, failing which you may be required to reimburse the aid retroactively.
Combination with other types of aid
The home ownership incentive can be combined with the savings subsidy to finance a home.
Online services and forms
Who to contact
Single point of contact for housing assistance
-
Ministry of Housing and Spatial Planning Single point of contact for housing assistance
- Address:
- 11, rue de Hollerich L-1741 Luxembourg Luxembourg
- Phone:
-
(+352) 8002 10 10
Telephone: Monday to Friday from 8.00 to 16.00
- Fax:
- (+352) 458 844
- Email address:
- info@ml.etat.lu
- Website:
- http://www.logement.lu
Closed ⋅ Opens Friday at 8.00
- Wednesday:
- 8.00 to 12.00, 13.30 to 16.00
- Thursday:
- Closed
- Friday:
- 8.00 to 12.00, 13.30 to 16.00
- Saturday:
- Closed
- Sunday:
- Closed
- Monday:
- 8.00 to 12.00, 13.30 to 16.00
- Tuesday:
- 8.00 to 12.00, 13.30 to 16.00
Thursdays by appointment only
Related procedures and links
Procedures
Links
Legal references
-
Loi du 7 août 2023
relative aux aides individuelles au logement
-
Règlement grand-ducal du 7 août 2023
fixant les modalités d’exécution relatives aux aides individuelles au logement.
An error occurred
Oops, an error has been detected during your form processing.