Subsidy for the improvement of old housing

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Summary:

You can apply for a subsidy for the improvement of old housing subject to certain conditions.

You can receive an improvement subsidy for the renovation or the enhancement of the energy efficiency of a home that is located in Luxembourg.

The law provides for 2 types of improvement subsidies:

  • an improvement subsidy for renovation works in order to improve the habitability, hygiene and safety of existing housing which corresponds to a percentage of the cost incurred for the work;
  • the 'Topup Klimabonus', i. e. an energy-efficiency improvement subsidy to promote sustainability, rational use of energy and renewable energy which corresponds to a percentage of the amount of the Klimabonus financial aid granted by the Ministry of the Environment, Climate and Biodiversity.

The rate of contribution of the Ministry of Housing and Spatial Planning varies depending on the composition and the income of your household.

The two types of subsidy cannot be cumulated.

Who is concerned?

To benefit from these aids, you must:

  • be of legal age on the date the application is submitted;
  • have a right to stay in Luxembourg for more than 3 months and be listed in the National Registry of Natural Persons;
  • be the owner of the home to be improved.

Prerequisites

Conditions relating to the home

The home to be improved must:

  • be located in Luxembourg;
  • have been occupied for the first time for more than 10 years.

Eligible works

Improvement subsidy

In order to benefit from the improvement subsidy, the works to be carried out must concern the following:

  • roof covering, roof structure or zinc plating;
  • drying out of damp walls;
  • creation of a crawl space or equivalent mechanical insulation;
  • connections to the sewer or waste-water drainage system;
  • adding bathrooms and toilets, including a septic tank;
  • installing water and gas pipes, and electric cabling;
  • installing or renovating central heating;
  • replacing windows;
  • installing or replacing shutters;
  • installing railings on the balcony or stairwell;
  • adding or extending rooms;
  • façade renovations using traditional methods;

You cannot benefit from the improvement subsidy for the following works:

  • works provided for by the amended law of 23 December 2016 establishing an aid scheme to promote sustainability, rational use of energy and renewable energy in housing;
  • works that only relate to ongoing maintenance or embellishments.

Topup Klimabonus

In order to benefit from the 'Topus Klimabonus', the works to be carried out must form part of the works provided for by the amended law of 23 December 2016 establishing an aid scheme to promote sustainability, rational use of energy and renewable energy in housing;

Dwelling conditions

You must use the home to be improved as your principal and permanent residence for at least 2 years after the grant of the subsidy.

If you are not yet able to live in the home at the time the subsidy is granted, you have a maximum of 3 years to move into the property. In this event, the period of 2 years begins on the date you actually occupy the dwelling. If you fail to respect this time limit, you have to reimburse the subsidy.

Absence of ownership

Neither yourself nor any other member of your household can be the owner of another home in Luxembourg or abroad.

Conditions relating to income

Your household must have received income during the year preceding:

  • the date of issue of the invoices for the works carried out, in the event of the improvement subsidy;
  • the date of the decision granting the financial aid in the event of the 'Topup Klimabonus'.

Your household's income must be lower than the statutory limit.

Determining the household's income

The income taken into account corresponds to the average income for the 2 calendar years preceding, as applicable, the date of issue of the invoices or the date of the decision to grant the Klimabonus financial aid.

If the household only has an income in the year in which the invoices are issued or the decision to grant the Klimabonus financial aid is made and in the year preceding that date, the income taken into account is the average of the income for these 2 calendar years.

For example:

You have undertaken works for which invoices were issued in October 2023.

Your household must have received income during the year 2022.

The average of the income for the years 2021 and 2022 is taken into account for the calculation. If the household had no income in 2021, the subsidy is calculated on the basis of the income for 2022 and 2023.

If the total income to be taken into account includes income originating from remunerated work that was only engaged in for part of the calendar year in question, such income is to be extrapolated over a whole year.

The household's monthly net income is calculated by taking into account:

  • net income as stipulated in article 10 of the amended income tax law of 4 December 1967, after deduction of social security contributions and actual taxes withheld (e.g. income from paid employment or old-age pension, unemployment benefits, parental leave allowance, REVIS, RPGH, etc.);
  • the maintenance payments received;
  • net accident annuity amounts;
  • gross earnings paid for overtime hours.

Maintenance payments made by you (for example for your children or to a divorced spouse) are deducted from the income.

Income from dependent children is not taken into account.

Social benefits are not taken into account to determine your household's net income, such as:

  • family allowance;
  • back-to-school allowance;
  • cost-of-living allowance.

Note: the above list is indicative only. The legal and regulatory provisions prevail.

Deadlines

Applications for an improvement subsidy must be submitted within 2 years as from:

  • the date of issue of the invoices for the improvement works carried out, in the event of the improvement subsidy;
  • the date of the decision granting the Klimabonus financial aid in the event of the 'Topup Klimabonus'.

How to proceed

If you wish to benefit from on of these aids, you must submit your application to the Single point of contact for housing assistance using a specific form (see form F2 (improvement subsidy) or F3 (topup Klimabonus) under 'Online services and forms').

The completed and signed form along with all necessary supporting documents can be submitted to the Single point of contact for housing assistance:

  • by post; or
  • by depositing the form at their offices.

Note: applications submitted electronically (using the email address guichet@ml.etat.lu) must be confirmed by postal mail to the administration.

Supporting documents

You must attach the following documents to the application form:

  • a copy of your identity document;
  • a declaration concerning the composition of your household (see form L/A21 under 'Online services and forms'), duly filled in and signed by you;
  • a declaration of honour (see form L92 under 'Online services and forms') signed by yourself declaring that neither yourself nor any member of your household owns another home in Luxembourg or abroad. If the application is made by multiple applicants, you must add an individually signed declaration of honour for each applicant;
  • salary or pension statements for all the members of the household covering the 2 years preceding the date of issue of the invoices relating to the works or the date of the decision to grant the Klimabonus financial aid;
  • documents providing proof of any other income of the household, if any;
  • a certificate of affiliation to the Joint Social Security Centre (Centre commun de la sécurité sociale - CCSS) for each member of the household;
  • for third country nationals (including British nationals): a document proving your right to stay in Luxembourg;
  • a certified copy issued by the notary of the notarial deed of purchase of the property for which the aid is requested;
  • a copy of the notarial deed of sale of the old dwelling (where applicable);
  • a certificate confirming the first occupation of the dwelling.

You must add the following documents:

  • in the event of an application for an improvement subsidy: a copy of the receipted invoices for the works carried out. Only invoices for a minimum amount of EUR 500 excluding VAT may be taken into account;
  • in the event of an application for a 'Topup Klimabonus': a copy of the decision to grant the Klimabonus financial aid. Only Klimabonus financial aids granted as from 1 January 2022 are taken into account.

The ministry reserves the right to request additional documents or information. In such cases, you must send the documents and/or information to the Single point of contact for housing assistance within 3 months. If you fail to reply to the request or if you reply after the deadline, your file will be closed and your request rejected.

Family status

The household composition taken into account is that existing on the date of the decision to grant the financial aid.

'Dependent child' is taken to mean:

  • any child for whom you receive a family allowance, who lives with you in the home and is registered there;
  • any child up to 27 years of age, who lives in your home and is declared as living there, and who is covered by your health insurance, either due to their family ties with you, 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.

Amount and granting of the aid

The rate of contribution of the Ministry of Housing is calculated using the formula provided for by law and varies depending on the composition and the income of your household.

If you are granted the subsidy, you will be informed in writing.

The subsidy will be transferred to the bank account indicated in the application form.

Refusal of aid

The financial aid is denied or discontinued if:

  • a member of your household is the owner of another dwelling, whether in Luxembourg or abroad;
  • your application contains false or incomplete information;
  • you do not submit all the required documents;
  • one or more conditions for granting the financial aid are not met;

Reimbursement

You must reimburse the improvement subsidy or the 'topup Klimabonus' if you:

  • have made inaccurate or incomplete declarations for the granting of aid;
  • have not respected the dwelling conditions.

Combination with other types of aid

The improvement subsidy and the 'topup Klimabonus' cannot be cumulated, but may be combined with other types of aid for the purchase or improvement of a home as provided for by law.

Maximum limit of aid in the form of a capital payment (aid pool)

The total amount of aid in the form of a capital payment granted (home ownership incentive, savings subsidy, improvement subsidy and energy-efficiency improvement subsidy) may not exceed the maximum limit of EUR 35,000 per beneficiary.

If a subsidy is granted to several beneficiaries, the amount of the aid is distributed equally among them.

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
    Email address:
    info@ml.etat.lu
    Open Closes at 12.00
    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 modifiée du 23 décembre 2016

    1. instituant un régime d'aides pour la promotion de la durabilité, de l'utilisation rationnelle de l'énergie et des énergies renouvelables dans le domaine du logement; 2. modifiant la loi modifiée du 23 décembre 2004 établissant un système d'échange de quotas d'émission de gaz à effet de serre

  • Loi modifiée 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.

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