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

Last update 22.05.2019

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 20,000 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 purchaser can present a certificate of residence in Luxembourg.

No conditions in terms of wealth, value of the building, cadastral income, or purchaser'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 construction can be built immediately under a building regulation;
    • intended to serve as the main, personal and effective dwelling of its owner;
  • dwellings intended to serve as the principal, personal and effective lodging of its owner and also buildings under construction;
  • outbuildings (garages, sheds, barns) or other additions (gardens) which adjoin or are separate from the primary 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.

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 acquirer 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 purchaser 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 purchaser'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 acquirer may also request a refund waiver when he is 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 remaining balance of the tax credit for any subsequent notarial instruments may be viewed online via MyGuichet.lu.

Forms / Online services

Tax credit on notarial deeds

To complete your application, the information about you collected from this form needs to be processed by the public administration concerned.

That information is kept by the administration in question for as long as it is required to achieve the purpose of the processing operation(s).

Your data will be shared with other public administrations that are necessary for the processing of your application. For details on which departments will have access to the data on this form, please contact the public administration you are filing your application with.

Under the terms of Regulation (EU) 2016/679 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, you have the right to access, rectify or, where applicable, remove any information relating to you. You are also entitled to withdraw your consent at any time.

Additionally, unless the processing of your personal data is compulsory, you may, with legitimate reasons, oppose the processing of such data.

If you wish to exercise these rights and/or obtain a record of the information held about you, please contact the administration in question using the contact details provided on the form. You are also entitled to file a claim with the National Commission for Data Protection (Commission nationale pour la protection des données), headquartered at 1, Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

By submitting your application, you agree that your personal data may be processed as part of the application process.

Crédit d'impôt sur acte notarié

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.

Steuerkredit auf notarielle Urkunden

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.

Who to contact

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