Applying for a tax credit on notarial instruments ("Bëllegen Akt")

MyGuichet.lu

Non residents

Residents

The standard tax rate for the purchase of a real estate property (house, apartment, building land) is 7 %:

6 % for registration fees;
1 % for transcription fees.

To reduce the incidental expenses associated with the purchase of a dwelling, the Government has introduced a tax allowance—known as a tax credit—on registration and recording fees for anyone wishing to purchase a building (and certain outbuildings and attachments) for use as their personal residence.

This tax credit is limited to EUR 30,000 per property buyer and is subject to conditions of effective and personal occupancy of the property.

In any case, the Registration Duties, Estates and VAT Authority (Administration de l'enregistrement, des domaines et de la TVA - AED) will collect a minimum amount of EUR 100 in registration fees.

Who is concerned

Persons concerned

The tax credit can be granted to natural persons who:

want to acquire a real estate property for personal housing purposes;
at the time of signing the notarial deed, are:
- either residents in Luxembourg and registered with a commune's population office; or
- not yet residents, but who intend to reside in Luxembourg in the purchased building;
live in a country of the European Economic Area (EEA). Such persons are treated as residents. They are not required to advance the recording and transcription fees and subsequently request a refund. They automatically benefit from the tax credit, provided they have requested it when signing the notarial deed;
live in a third country: the tax credit will only be granted when the buyer can present a certificate of residence in Luxembourg.

No conditions in terms of wealth, value of the building, cadastral income, or buyer's income are taken into account.

Acquisitions concerned

This tax reduction may be granted in the event of the acquisition of a property or fractions of a property by:

sale;
auction sale;
auction (public sale to end an indivision);
sharing with returns or capital gains;
exchange with returns or capital gains;
constitution or alienation of the long lease right or the building right.

Acquisitions made by means of donations or inheritances are not covered.

Buildings concerned

The tax credit is granted for:

building plots located in a residential area and:
- on which a building can be built immediately by virtue of a building regulation;
- intended to serve as the main, personal and effective residence of its owner;
dwellings intended to serve as the main, personal and effective residence of its owner and also buildings under construction;
outbuildings (garages, sheds, barns) or other additions (gardens) which adjoin or are separate from the main residential building, but located close to it.

Not included are:

secondary residences;
weekend homes;
buildings intended for rental and trade.

How to proceed

Submitting the application

The request to benefit from the tax credit is made by the notary when the notarial deed is signed.

Please note: notarial deeds signed on or after 7 March 2023

The law of 16 May 2023 amending the amended law of 30 July 2002 determining various tax measures designed to encourage the marketing and acquisition of building land and residential property increased the tax credit ceiling from EUR 20,000 to EUR 30,000.

There are a number of situations in which the additional tax credit (maximum EUR 10,000) can be claimed retroactively to 7 March 2023:

the buyer has made a tax credit claim in the notarial deed of purchase and an additional tax credit is to be granted.

In this case, the Registration Duties, Estates and VAT Authority (AED) has provided for a refund procedure directly to the buyer's account. The claim form can be downloaded below (see 'Forms / Online services') or from the AED website. The form, signed by the buyer, must be returned to the AED for verification and reimbursement.

the buyer did not apply for the tax credit in the notarial deed because they had used up the maximum amount of EUR 20,000 in force at the time the notarial deed was signed.

In this case, the buyer can claim a refund of the additional tax credit. To do this, they must first sign a supplementary notarial deed containing the items listed below in the 'Supporting documents' paragraph.

Supporting documents

To qualify for the tax credit, the notarial deed must contain:

the buyer's corresponding request;
the buyer's commitment:
- to personally inhabit the property within 2 or 4 years from the date of the notarial deed and for an uninterrupted period of at least 2 years;
- not to use it for any other purpose during this period;
- to reimburse the amount of the allowance in the event of non-compliance with the conditions;
an undertaking on the part of the buyer to declare in writing, to the AED, within 3 months, any transfer or change in the intended use of the building in question.

Amount of the tax credit

The tax credit:

is limited to EUR 20,000 per buyer;
can be used at once;
in the event that the recording and transcription fees due on an acquisition do not reach the total amount of the tax credit, the balance may be used as needed for other acquisitions until it is exhausted.

Buyer's obligations

The buyer undertakes to occupy effectively and personally, as owner, the property acquired:

within a time limit of:
- 2 years from the date of the notarial deed of acquisition;
- 4 years in the event of the acquisition of a building plot or a building under construction;
during a period of at least 2 years.

The buyer may send the director of the AED a written and reasoned request for an extension of the occupancy period.

Reimbursement of the tax credit

The buyer must repay the allowance granted in full with legal interest from the date of grant if, before the completion of the 2 years of occupation, he:

rents out the building or just parts of it;
transfers the building;
ceases to lodge in the building.

Exemption from the occupancy clause

A request for an exemption from occupation may be addressed to the Director of the AED. The exemption of occupation may be granted:

in case of force majeure, or;
due to:
- the buyer's health condition making it impossible to occupy the building, duly certified by a medical certificate;
- the forced sale of the building;
- expropriation for reasons of public utility;
- the death of the buyer's spouse;
- divorce or dissolution of a legal partnership.

Note that the signing of a preliminary sales agreement results in the immediate transfer of ownership of the building. The 2-year occupancy period is not respected in the event of the signature of a sales agreement before the expiry of this period.

However, it is possible to postpone the time of transfer of ownership of the property to the day the notarial deed is signed. In this case, a special clause is inserted in the sales agreement, such as: "ownership of the building will be transferred on the date on which the authentic instrument is signed".

If there is such a clause, the 2-year period will be considered to have been observed even if the agreement is signed before the term expires, provided that the authenticated instrument is signed after the 2-year term.

After 2 years of occupation, the buyer is free to sell, sell or rent his building.

Exemption from reimbursement

The buyer may also request a refund waiver when they are under obligation:

to interrupt the occupation of his building;
to transfer his place of residence for professional reasons beyond his control.

The request for exemption:

must be addressed to the director of the AED;
may be granted on condition that the occupation of the building is resumed:
- upon the buyer's return;
- until the end of the total 2 year occupation period.

Consulting the balance on the remaining tax credit.

The the tax credit balance for any remaining notarial instruments can be consulted online via MyGuichet.lu.

Forms / Online services

Tax credit on notarial deeds

Go to the procedure

Crédit d'impôt sur acte notarié

Accéder à la démarche

Steuerkredit auf notarielle Urkunden

Den Vorgang öffnen

Demande de remboursement d'un supplément de crédit d'impôt suite à la loi du 16 mai 2023

Télécharger le formulaire PDF, 361 Kb

Who to contact

Double click to activate the map

Registration Duties, Estates and VAT Authority

1-3, Avenue Guillaume
L-1651 Luxembourg
Luxembourg
Postal address :
B.P. 31 L-2010

Phone : (+352) 247 80800

Fax : (+352) 247 90400

(+352) 247 80800 info@aed.public.lu Registration Duties, Estates and VAT Authority Path to Registration Duties, Estates and VAT Authority
Central Revenue Office

5, rue du Plébiscite
L-2341 Luxembourg
Luxembourg
Postal address :
B.P. 1004 L-1010 Luxembourg

Phone : (+352) 247 - 80753

Fax : (+352) 247 - 90400

From 08.00 to 12.00 and from 14.00 to 16.00

(+352) 247 - 80753 lux.rc@en.etat.lu Path to Central Revenue Office More information on Central Revenue Office
Wills service

1-3, Avenue Guillaume
L-1651 Luxembourg
Luxembourg
Postal address :
B.P. 31 L-2010 Luxembourg

Phone : (+352) 247 - 80475 ou (+352) 247 - 80473

Fax : (+352) 247 - 90400

(+352) 247 - 80475 ou (+352) 247 - 80473 info@aed.public.lu Path to Wills service More information on Wills service
Luxembourg Civil Registry Office 2

308, route d’Esch
L-1471 Luxembourg
Luxembourg
Postal address :
308, route d’Esch - L-2010 Luxembourg

Path to Luxembourg Civil Registry Office 2 More information on Luxembourg Civil Registry Office 2
Civil Registry Office Grevenmacher

Schiltzeplaz (Hôtel des Postes)
L-6774 Grevenmacher
Luxembourg

Path to Civil Registry Office Grevenmacher More information on Civil Registry Office Grevenmacher
Civil Registry Office Diekirch

Place Guillaume (Hôtel des Postes)
L-9237 Diekirch
Luxembourg

Path to Civil Registry Office Diekirch More information on Civil Registry Office Diekirch
Civil Registry Office Esch-sur-Alzette

33-35, rue Zénon Bernard
L-4031 Esch-sur-Alzette
Luxembourg

Path to Civil Registry Office Esch-sur-Alzette More information on Civil Registry Office Esch-sur-Alzette
Luxembourg Guichet Unique

308, route d’Esch
L-1471 Luxembourg
Luxembourg

Phone : (+352) 247 - 80800

From 08.30 to 12.00 and from 14.00 to 16.00

(+352) 247 - 80800 info.aed@en.etat.lu Path to Luxembourg Guichet Unique More information on Luxembourg Guichet Unique
Registration, Inheritance, Mortgages

308, route d’Esch
L-1471 Luxembourg
Luxembourg

Path to Registration, Inheritance, Mortgages More information on Registration, Inheritance, Mortgages
VAT department

308, route d’Esch
L-1471 Luxembourg
Luxembourg

Path to VAT department More information on VAT department
Department for office management and operation

1-3, avenue Guillaume
L-1651 Luxembourg
Luxembourg
Postal address :
B.P. 31 L-2010 Luxembourg

Phone : (+352) 24 78 08 00

(+352) 24 78 08 00 remboursement.transport@en.etat.lu Path to Department for office management and operation More information on Department for office management and operation

We are interested in your opinion

How would you rate the content of this page?

For more information

Further information

Crédit d'impôt - "Bëllegen Akt"

sur le Portail de la fiscalité indirecte
Demande de remboursement du crédit d'impôt - Loi du 16 mai 2023

sur le portail de la fiscalité indirecte

Legal references

Loi modifiée du 30 juillet 2002
Loi du 22 octobre 2008

portant: 1. promotion de l'habitat et création d'un pacte logement avec les communes, 2. sur le droit d'emphytéose et le droit de superficie, 3. modification a) de la loi modifiée du 16 octobre 1934 concernant l'évaluation des biens et valeurs; b) de la loi modifiée du 1er décembre 1936 sur l'impôt foncier; c) de la loi modifiée du 25 février 1979 concernant l'aide au logement; d) de la loi modifiée du 10 décembre 1998 portant création de l'établissement public dénommé «Fonds d'assainissement de la Cité Syrdall»; e) de la loi modifiée du 30 juillet 2002 déterminant différentes mesures fiscales destinées à encourager la mise sur le marché et l'acquisition de terrains à bâtir et d'immeubles d'habitation; f) de la loi modifiée du 19 juillet 2004 concernant l'aménagement communal et le développement urbain; g) de la loi du 21 septembre 2006 sur le bail à usage d'habitation et modifiant certaines dispositions du Code civil

Publications

Bëllegen Akt - Consultez le solde de votre crédit d'impôt en ligne