Home ownership incentive

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Summary:

You can apply for a home ownership incentive (prime d'accession à la propriété) for the purchase or construction of a home subject to certain conditions.

You can apply to the State for a home ownership incentive for the purchase or construction of a home in Luxembourg by way of a mortgage loan.

The amount of this incentive depends on the composition and income of your household and can vary between EUR 500 and EUR 10,000.

If the dwelling concerned is a commonhold property or a terraced house, the incentive 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?

In order to benefit from the home ownership incentive, 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 on the National Registry of Natural Persons.

Prerequisites

Signing of a mortgage loan

You must have taken out a mortgage loan with a credit institution for the purchase or construction of your home.

Conditions relating to the home

The dwelling must be located in Luxembourg and be part of the private property market.

The dwelling cannot be a dwelling intended for sale in the context of affordable housing (vente abordable) or housing at moderate cost (vente à coût modéré).

Dwelling conditions

You, as the beneficiary, must use the home as your principal and permanent residence for at least 2 years after the payment date of the incentive.

If you are not yet able to live in the home at the time the incentive 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 comply with the occupancy deadline or the deadline to move in, you will be required to repay the amount of the incentive granted.

Absence of ownership

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

Conditions relating to income

Your household must have received income during the year preceding:

  • the date of the notarial deed of purchase of the property or of sale of property under construction (vente en état futur d’achèvement); or
  • the date on which you declared the start of construction work to the mayor if you are managing the construction of the dwelling yourself.

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

Consideration of income

The income taken into account corresponds to the average income of the 2 calendar years preceding:

  • the date of the notarial deed of purchase of the property or of sale of property under construction; or
  • the date on which you declared the start of construction work to the mayor if you are managing the construction of the dwelling yourself.

If your household only has an income in the year of the authentic deed or the year preceding that date, the income taken into account corresponds to the average of the income for these 2 calendar years.

Example:

The purchase deed for the home was signed in October 2023.

The 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 incentive 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

You must submit our application for a home ownership incentive within 1 year of:

  • the date of the notarial deed of purchase of the property or of sale of property under construction;
  • the date on which you declared the start of construction work to the mayor if you are managing the construction of the dwelling yourself.

How to proceed

Submitting the application

If you wish to benefit from this aid, you must submit your application to the Single point of contact for housing assistance using a specific form (see '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 A92 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 our household for the 2 years preceding the submission date of the application;
  • 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 or of sale of property under construction for which the aid is requested;
  • a copy of the notarial deed of sale of the old dwelling (where applicable);
  • a certificate showing the details of the mortgage loan taken out for the purchase/construction of the property (see 'Online services and forms').

In the event of divorce (proceedings) or dissolution of a registered partnership, you must also attach, where applicable:

  • a copy of the deed of liquidation or partition;
  • a copy of the divorce judgement or an extract of the civil status record attesting to the dissolution of the partnership;
  • a copy of the summons for divorce proceedings or of the record of the first appearance in court, or a copy of the unilateral declaration by the partner attesting to his/her wish to terminate the partnership.

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.

Assessment and granting of the aid

The home ownership incentive is calculated using the formula provided for by law. The amount of the aid varies according to the composition and income of the household.

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

The incentive will be transferred to the bank account you indicated in your application form.

(Short-term) compensatory subsidy

The home ownership incentive is increased by a compensatory subsidy in the amount of EUR 20,000 if you purchase:

  • between 1 September 2023 and 31 December 2024 (date of authentic deed of sale),
  • a newly built property not previously lived in.

Family status

The household composition taken into account is that existing:

  • on the date of the notarial deed of purchase of the property or of sale of property under construction; or
  • on the date on which you declared the start of construction work to the mayor if you are managing the construction of the dwelling yourself.

If a child is born in the year following that date, you can apply for the incentive to be re-evaluated on the basis of this new composition of our household.

Reimbursement

You must reimburse the home ownership incentive if you:

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

Refusal of aid

The incentive is denied to you if:

  • the dwelling is a dwelling intended for sale in the context of affordable housing or housing at moderate cost;
  • you or 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 aid are not met.

Combination with other types of aid

The home ownership incentive may be combined with other aid in the form of a capital payment.

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
    Closed ⋅ Opens at 13.30
    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

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
    Closed ⋅ Opens at 13.30
    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

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