Applying for an interest subsidy

The interest subsidy is a form of interest aid from the State that may be granted in order to reduce monthly costs for repaying a mortgage loan contracted for the construction, purchase or improvement of a dwelling used as a primary and permanent residence. This residential status must be maintained for as long as the aid is paid to the beneficiary.

To calculate the interest subsidy, mortgage loans are taken into consideration up to EUR 175,000.00. This amount is amortised starting from the 1st payment of the aid (for applications with payments on 1 January 2013, the amortisation can only take place following the revision of the file). The rate of the interest subsidy may vary between 0.575 % and 2.45 %. It is based on beneficiaries' income and family status (see graduated table).

Mortgage loans taken out for the sole purpose of making one or more investments that are eligible for aid under the schemes for the promotion and rational use of energy and the development of renewable energy sources are taken into considered up to EUR 50,000.00. This amount is amortised starting from the 1st payment of the aid (for current applications being paid at 1 January 2013, the amortisation can only occur following revision of the file). This interest subsidy for a loan contracted for energy efficiency renovation can only be granted after presentation of bills proving that the interest subsidy was used for the above-mentioned purposes.

The interest subsidy can only be granted once to a given beneficiary.

Who is concerned

Any person legally residing in Luxembourg who has contracted a mortgage loan for the purchase, construction, improvement or energy efficiency enhancement of an existing dwelling based in Luxembourg, and used as a primary and permanent residence by that person and their spouse, and any of their ascendants and/or descendants, including those of their spouse, living in the same household, may apply for the interest subsidy.

Prerequisites

A borrower who wishes to receive an interest subsidy must:

  • be authorised to legally reside in Luxembourg, be domiciled there and effectively live there;
  • have contracted a mortgage loan from an approved financial establishment in the European Union and the European Economic Area (EEA), or from a social security-related pension institution, to purchase, construct, improve or enhance the energy efficiency of a dwelling located in Luxembourg that will effectively be used by the applicant as their effective primary, permanent dwelling for at least 10 years. Loans are taken into consideration up to EUR 175,000.00;
  • be neither the owner of another dwelling, nor the holder of a right to use another dwelling, either in the Grand-Duchy of Luxembourg or in a foreign country;

  • be the unique holder of the loan;

  • comply with certain useful residential floor space criteria.

The following useful residential floor space criteria must be satisfied:

  • single-family residence: between 65 m

  • flat: between 45 m

These floor spaces may be increased by:

  • 20 m2 per dependent child of the applicant starting from the 3rd child;
  • 20 m2 for any 1st degree ascendant of the applicant, and any disabled person living in the house of the beneficiary, starting with the 5th person residing there, on condition that this person does not own a house him-/herself.

'Dependent child' is taken to mean:

  • a child for whom the applicant receives family allowances, and who lives with the applicant in the dwelling, and who is declared as living there;
  • a child up to 27 years of age, who lives with the applicant in the dwelling and is declared as living there, and who is covered by the applicant's health insurance, either due to their family ties with them, or pursuant to the laws of a State with which Luxembourg is linked by a bi- or multi-lateral social security instrument, or pursuant to a health insurance scheme due to an activity in an international organisation.

To calculate the floor space, basements, attics, garages and common areas in buildings held as co-property should not be taken into account.

Workshops, commercial areas and other outbuildings used for professional purposes are excluded up to a maximum of 20 m Garrets are included, however, as are spaces where garrets could be accommodated, but only provided that the height of the garret is at least 2 metres and that it has normal access and a total window surface exceeding 0.375 m

For buildings constructed prior to 10 September 1944, no floor-space criteria apply.

How to proceed

How to apply for the interest subsidy

The application is made using the application form for individual housing aid, which should be filled in by the applicant and sent to the Housing Aid Service (Service des aides au logement). The application may be filed jointly with the application for a construction, purchase or improvement incentive.

The form must be signed on every page.

The following documents must be submitted with the application:

  • for the applicant and any other person living in the dwelling: a copy of the certificate of registration of the permanent residence permit (for nationals of a Member State of the European Union) and/or a copy of the residence permit or permanent residence permit or passport with residence permit (for nationals of a third country);
  • a copy of the applicant's salary certificate and that of their spouse, if any;
  • a certificate issued by the financial institution showing the details of the loan (account number, account holder, amount, term, interest rate, date of availability, use of the funds);
  • a copy of the notarised property deed for the building or the land, dated and signed by the notary;
  • a certificate documenting the year of construction of the housing;
  • a copy of the construction plan dated and signed by the architect or the advising engineer.

The applicant's file will be automatically re-examined every two years. All changes in family status, financial status, or loan amortisation schedule must be reported to the Housing Aid Service. If the data in the file justify increasing the interest subsidy rate, this increase will be effective starting from the date of re-examination.

Family status

The family status taken into account is that existing on the date the interest subsidy is granted.

All changes in family status, financial status, or loan amortisation schedule must be reported to the Housing Aid Service.

Income determination

The income considered for the calculation of the interest subsidy is the the last known income at the time of the allocation of the interest subsidy.

The income considered is the taxable income plus all other income—including the untaxable income of the applicant or of any other person living with the applicant in the dwelling in question, except for descendants and ascendants or family relations up to the 2nd degree inclusive—exclusive of family allowances, State financial aid for students in higher education, allowance for severely disabled people, orphans' pensions and long-term care insurance benefits.

All changes in family status, financial status, or loan amortisation schedule must be reported to the Housing Aid Service.

Denial of the interest subsidy

The interest subsidy will be denied if the applicant:

  • has taxable income exceeding the limit specified by law;
  • rents all or part of the dwelling in question, unless part of the dwelling is rented to a student enrolled in a post-secondary school in the Grand-Duchy of Luxembourg.
  • has donated their wealth to a third-party.

The interest subsidy is not due if one or more of the conditions for granting or maintaining the subsidy are no longer met or are modified.

The interest subsidy will not be granted if the annual amount of the subsidy is less than EUR 25.00.

The interest subsidies lapse after six months starting from the end of the year for which the subsidies would normally have been able to be granted.

Reimbursement of the interest subsidy

The dwelling for which the interest subsidy is granted must be used as the beneficiary's primary and permanent dwelling for at least 10 years, failing which the beneficiary will have to return the subsidy.

Should the beneficiary leave the dwelling before the end of the specified ten-year period, whether for a cause of divorce, separation, or for any other cause, the Minister may, upon receiving a written and substantiated request, grant the beneficiary remaining in the house, a provisional continuation of the interest subsidy for a maximum of two years. The beneficiary living in the dwelling after this 2-year period and having alone assumed the mortgage loan may file a request to have the interest subsidy maintained. In this case, the applicant must have the full and exclusive ownership of the dwelling.

Moreover, if a housing incentive must be reimbursed to the State, the interest subsidy is not due and must also be reimbursed with retroactive effect.

Criteria for calculating the interest subsidy

The rate of the interest subsidy is calculated on the basis of the taxable income and family status and may vary between 0.575 % and 2.45 %. In the case of the concurrent receipt of the interest subsidy and interest relief, these two types of aid may under no circumstances exceed the mortgage loan interest rate or the ceiling rate set at 3%.

However, when the interest rate to which the interest subsidy is applied is less than a reference interest rate set at 1.5 %, the rate of the interest subsidy is reduced by half of the difference between the reference rate and the effective rate rounded down by one 8th of a point, but without exceeding the effective rate.

Example:
When the effective interest rate is 1,2 %, the difference between the reference rate and the effective rate rounded down by one 8 th of a point is 0.125. The difference between the reference rate and the effective rate is 0.3 %(1.5 % - 1.2 %). This rate of 0.3 % must be halved (0.3 % ÷ 2 = 0.15 %) and rounded down by one 8th of a point (0.15% becomes 0.125%). The interest subsidy granted will thus be lowered by 0.125 %.

The interest subsidy is paid for the beneficiary to the institution that granted the mortgage loan to finance the dwelling. It is calculated on the basis of the interest due based on the amortisation schedule established by the lending institution.

Interest according to family status for incomes from EUR 2,750.00 to EUR 4,500.00

Family status

Income in euros (index: 100)

2,750

3,000

3,250

3,500

3,750

4,000

4,250

4,500

Single person

2.450

2.450

2.450

1.950

1.575

1.200

0.950

0.825

Household with 0 children

2.450

2.450

2.450

2.450

1.950

1.700

1.450

1.200

Household with 1 child

2.450

2.450

2.450

2.450

2.325

2.200

1.700

1.575

Household with 2 children

2.450

2.450

2.450

2.450

2.450

2.325

2.200

1.700

Household with 3 children

2.450

2.450

2.450

2.450

2.450

2.450

2.325

2.200

Household with 4 children

2.450

2.450

2.450

2.450

2.450

2.450

2.450

2.325

Household with 5 children

2.450

2.450

2.450

2.450

2.450

2.450

2.450

2.450

Household with 6 children

2.450

2.450

2.450

2.450

2.450

2.450

2.450

2.450

Interest according to family status for incomes from EUR 4,750.00 to EUR 7,000.00

Family status

Income in euros (index: 100)

4,750

5,000

5,250

5,500

5,750

6,000

6,250

6,500

6,750

7,000

Single person

0.825

0.825

0.575

--

--

--

--

--

--

--

Household with 0 children

1.075

0.950

0.825

0.825

0.575

--

--

--

--

--

Household with 1 child

1.450

1.325

1.200

1.075

0.950

0.825

0.825

0.825

0.575

--

Household with 2 children

1.575

1.450

1.325

1.200

1.075

0.950

0.825

0.825

0.825

0.575

Household with 3 children

1.700

1.575

1.450

1.325

1.200

1.075

0.950

0.825

0.825

0.825

Household with 4 children

2.200

1.700

1.575

1.450

1.325

1.200

1.075

0.950

0.950

0.825

Household with 5 children

2.450

2.325

2.200

1.950

1.700

1.450

1.325

1.200

1.075

0.950

Household with 6 children

2.450

2.450

2.325

2.200

1.950

1.700

1.575

1.450

1.200

1.075

Interest according to family status for incomes from EUR 7,250.00 to EUR 8,250.00

Family status

Income in euros (index: 100)

7,250

7,500

7,750

8,000

8,250

Single person

--

--

--

--

--

Household with 0 children

--

--

--

--

--

Household with 1 child

--

--

--

--

--

Household with 2 children

--

--

--

--

--

Household with 3 children

0.825

0.575

--

--

--

Household with 4 children

0.825

0.825

0.575

--

--

Household with 5 children

0.825

0.825

0.825

0.575

--

Household with 6 children

0.950

0.825

0.825

0.825

0.575

The income brackets are understood as including the lower limit but not the upper limit.

For the current national index, see the website of the National Institute for Statistics and Economic Studies (Institut national de la statistique et des études économiques - STATEC).

All changes in family status, financial status, or loan amortisation schedule must be reported to the Housing Aid Service.

Accumulation with other aids

The interest subsidy may be accumulated with purchase, construction or improvement incentives, the savings benefit, aid for special home development to cater to the needs of physically disabled persons, and general homebuyers' savings aid. Benefits for children are applied through the interest relief. In the case of the concurrent receipt of interest relief and the interest subsidy, these two types of aid may not under any circumstances exceed the mortgage loan interest rate or the ceiling rate set at 3%.

Forms / Online services

Demande en obtention des aides individuelles au logement

Demande en obtention des aides individuelles au logement

Les informations qui vous concernent recueillies sur ce formulaire font l’objet d’un traitement par l’administration concernée afin de mener à bien votre demande.

Ces informations sont conservées pour la durée nécessaire par l’administration à la réalisation de la finalité du traitement

Les destinataires de vos données sont les administrations compétentes dans le cadre du traitement de votre demande. Veuillez-vous adresser à l’administration concernée par votre demande pour connaître les destinataires des données figurant sur ce formulaire. Conformément au règlement (UE) 2016/679 relatif à la protection des personnes physiques à l'égard du traitement des données à caractère personnel et à la libre circulation de ces données, vous bénéficiez d’un droit d’accès, de rectification et le cas échéant d’effacement des informations vous concernant. Vous disposez également du droit de retirer votre consentement à tout moment.

En outre et excepté le cas où le traitement de vos données présente un caractère obligatoire, vous pouvez, pour des motifs légitimes, vous y opposer.

Si vous souhaitez exercer ces droits et/ou obtenir communication de vos informations, veuillez-vous adresser à l’administration concernée suivant les coordonnées indiquées dans le formulaire. Vous avez également la possibilité d’introduire une réclamation auprès de la Commission nationale pour la protection des données ayant son siège à 1 Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

En poursuivant votre démarche, vous acceptez que vos données personnelles soient traitées dans le cadre de votre demande.

Antrag auf Bewilligung der individuellen Wohnungsbeihilfen

Antrag auf Bewilligung der individuellen Wohnungsbeihilfen

Ihre in diesem Formular erfassten personenbezogenen Informationen werden von der zuständigen Verwaltungsbehörde verarbeitet, um Ihren Antrag erfolgreich abzuschließen.

Diese Informationen werden von der Behörde für den zur Verarbeitung erforderlichen Zeitraum gespeichert.

Die Empfänger Ihrer Daten sind die im Rahmen Ihres Antrags zuständigen Verwaltungsbehörden. Um die Empfänger der in diesem Formular erfassten Daten zu erfahren, wenden Sie sich bitte an die für Ihren Antrag zuständige Behörde.

Gemäß der Verordnung (EU) 2016/679 zum Schutz natürlicher Personen bei der Verarbeitung personenbezogener Daten und zum freien Datenverkehr haben Sie das Recht auf Zugang, Berichtigung und gegebenenfalls Löschung Ihrer personenbezogenen Informationen. Sie haben zudem das Recht, Ihre erteilte Einwilligung jederzeit zu widerrufen.

Weiterhin können Sie, außer in Fällen, in denen die Verarbeitung Ihrer Daten verpflichtend ist, Widerspruch einlegen, wenn dieser rechtmäßig begründet ist.

Wenn Sie diese Rechte ausüben und/oder Einsicht in Ihre Informationen nehmen möchten, können Sie sich unter den im Formular angegebenen Kontaktdaten an die zuständige Verwaltungsbehörde wenden. Sie haben außerdem die Möglichkeit, bei der Nationalen Kommission für den Datenschutz Beschwerde einzulegen (Commission nationale pour la protection des données, 1, Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette).

Wenn Sie Ihren Vorgang fortsetzen, akzeptieren Sie damit, dass Ihre personenbezogenen Daten im Rahmen Ihres Antrags verarbeitet werden.

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