Savings subsidy to finance a home

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Summary:

You can apply for a savings subsidy to finance the purchase or construction of a home subject to certain conditions.

You can apply for a savings subsidy of up to EUR 5,000 per beneficiary if you have saved own funds for financing the purchase or construction of a home and you have invested at least 90 % of the funds thus saved to finance the home.

This procedure features the eTracking function for hardcopy (paper) forms. This feature enables users to stay informed about the processing of their applications by email and/or by SMS.

Who is concerned?

Beneficiaries of the home ownership incentive (prime d’accession à la propriété).

Prerequisites

Benefiting from the home ownership incentive

You must have benefited from the home ownership incentive and respected the conditions regarding this aid.

Conditions relating to savings

You must:

  • have saved own funds with a view to financing the home with the same financial institution for at least one year. A maximum period of 10 years may be taken into consideration (account history, account statements);
  • have invested at least 90 % of the funds saved to finance the purchase or construction of your home, within 2 years following the date of the authentic deed documenting the purchase of the dwelling or of the sale of property under construction.

Dwelling conditions

You must use the home as your principal and permanent residence for at least 2 years after the payment date 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 comply with the occupancy deadline or the deadline to move in, you will be required to repay the amount of the subsidy granted.

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 form F1 under 'Online services and forms'). The application for a savings subsidy can be submitted at the same time as the application for the home ownership incentive.

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

The application form must be accompanied by documentary evidence of savings with one and the same credit institution over a period of at least one year.

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.

Amount and granting of the aid

The subsidy amounts to 10 % of the increase of the savings per calendar year and may not exceed a maximum of EUR 500 per calendar year. A maximum period of 10 years may be taken into consideration.

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

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

Reimbursement

You must reimburse the savings subsidy if:

  • you have made inaccurate or incomplete declarations for the granting or maintenance of aid;
  • you have not respected the dwelling conditions regarding the subsidy; or
  • the home ownership incentive has to be reimbursed.

Refusal of aid

The subsidy is denied to you if:

  • you have not benefited from the home ownership incentive for the home concerned;
  • you have not invested at least 90 % of the funds saved to finance the purchase or construction of the home at the latest 2 years following the signature of the notarised deed of purchase;
  • the application contains false or incomplete information;
  • you do not submit all the required documents; or
  • several conditions for granting the financial aid are not met.

Combination with other aid

The savings subsidy 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
    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

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

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