The renovation subsidy is funding from the State to finance the renovation or the improvement of the energy efficiency of a home.

This subsidy is granted in the form of:

• an renovation subsidy for renovation work to improve the habitability, health and safety of existing homes; or
• an energy-efficiency improvement subsidy to promote sustainability and the rational use of energy and renewable energies.

The two subsidies may not be accumulated.

The subsidy corresponds to a percentage of the cost of the work undertaken, and may vary depending on the recipient's income and family situation.

Who is concerned

You can claim this aid if:

• you are of legal age;
• you are legally entitled to reside in Luxembourg, you are domiciled there and you actually reside there;
• you are the owner of the dwelling;
• you live in the dwelling which is your principal and permanent place of residence;
• you and the members of your household are not the owners or usufructuaries of any other dwelling, whether in Luxembourg or abroad;
• your household community income does not exceed the rates set by law; and
• the property has its own cadastral designation.

Prerequisites

Work that may be covered by the subsidy

The work must be carried out in a dwelling that was first occupied less than 10 years ago.

Renovation subsidy for renovation work

The following work is eligible for the renovation subsidy:

• 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;
• the replacement of windows;
• installing or replacing shutters;
• installing railings on the balcony or stairwell;
• adding or extending rooms; and
• façade renovations using traditional methods;

Ongoing maintenance and embellishments do not qualify for the subsidy.

Energy-efficiency improvement subsidy

The following work is eligible for the energy-efficiency improvement subsidy:

• construction of a thermal envelope;
• a controlled mechanical ventilation system;
• construction of a solar photovoltaic system;
• construction of a solar thermal system;
• installation of a heat pump, hybrid heat pump, or a hybrid system with a heat pump;
• installation of a wood-fuelled boiler and a particulate filter;
• construction of a heat network and a connection to a heat network.

How to proceed

Calculation criteria

Renovation subsidy for renovation work

The renovation subsidy will correspond to a maximum 40 % of the total amount of invoices for renovation work.

Each invoice must be for a minimum amount of EUR 500 (excluding VAT).

No renovation subsidy will be granted if the total amount of the subsidy is less than EUR 125.

You must send receipted invoices to the minister for housing within 2 years of their issue.

Energy-efficiency improvement subsidy

The energy-efficiency improvement subsidy corresponds to a percentage of the amount of financial aid granted to you under the aid scheme to promote sustainability, rational use of energy and renewable energy from 1 January 2022 onwards.

This percentage is set according to your income and the composition of your household.

The maximum subsidy is 100 % of the amount of financial aid granted.

To qualify for the subsidy, you must send a copy of the decision to grant financial aid to the minister for housing. Only financial aid granted from 1 January 2022 onwards will be taken into account.

Consideration of family status

The family situation at the time the aid is granted is taken into account in determining the subsidy.

Consideration of income

The income that will be taken into account is the taxable income, plus all other income including non-taxable income available to you and any other person living with you in the dwelling.

The following income is not taken into account:

• family benefits;
• state financial aid for higher education;
• allowances for severely disabled people;
• orphan's pensions;
• long-term care insurance payments.

Renovation subsidy for renovation work

Taxable income is the average of your income for the 2 calendar years preceding the year in which the invoices for the work were issued.

If the household only has an income in the year in which the invoices are issued and the year preceding that date, the taxable income is the average of the incomes for these 2 calendar years.

If the household has had no income during the calendar year preceding the issue of the invoices, no subsidy can be granted.

Energy-efficiency improvement subsidy

Your taxable income is the average of your income during the 2 calendar years preceding the year in which the decision to grant financial aid was made.

If the household only has income during the year in which the invoices are issued and the year preceding that date, the taxable income is the average of the incomes for these 2 calendar years.

If the household has had no income during the calendar year preceding the issue of the invoices, no subsidy can be granted.

Criteria and procedure for obtaining aid to improve old housing

To submit your application, you must complete and sign the individual housing benefit application form (see 'Forms / Online services') and return it to the Single point of contact for housing assistance, enclosing all the required documents.

The following documents must be attached to the application:

• a copy of your identity card;
• a declaration concerning the composition of your household, duly dated and signed by you;
• a copy of the authentic deed of purchase of the property or the authentic deed in the case of a sale of property under construction;
• a declaration of honour signed by yourself certifying that the members of your household have no other property in Luxembourg or abroad;
• documents providing proof of the household income;
• a certificate of affiliation to the Joint Social Security Centre for each member of your household;
• for the renovation subsidy for renovation work: a copy of the receipted invoices for the renovation work;
• for the energy-efficiency improvement subsidy: a copy of the decision to grant financial aid;
• if you are a foreign national: a copy of your residence permit granting you the right to stay for more than 3 months at the time of application.

You must also immediately inform the administration of any change that could affect the granting, maintenance, modification or withdrawal of the aid, failing which you may be required to reimburse the aid retroactively.

The Ministry of Housing reserves the right to request additional supporting documents as part of the process of verifying any information, statements, applications, declarations, claims or appeals submitted to its offices.

Payment of the aid to renovate old housing

The subsidy may be paid in instalments and may cover more than one dwelling. Each instalment of the renovation subsidy is calculated according to your income and your family situation.

If there are multiple beneficiaries of the aid, each instalment is paid in equal shares.

Refusal of subsidy

The renovation subsidy is refused if the property is less than 10 years old.

No renovation subsidy will be granted if the total amount of the subsidy is less than EUR 125.

Reimbursement of the subsidy

If you have received a renovation subsidy when it was not due, you must repay it in full. No exemption from reimbursement is granted.

Similarly, if you have made an inaccurate or incomplete declaration in order to qualify for the subsidy, you must return it in full, with retroactive effect.

The beneficiary of the aid must also immediately inform the administration of any change likely to affect the granting, maintenance, modification or withdrawal of the aid, failing which they may be required to reimburse the aid retroactively.

Combining the renovation subsidy with other aid

Financial aid from the State for the renovation of old housing may be combined with:

• the purchase subsidy;
• the additional subsidy for architect or construction engineer fees;
• the savings subsidy;
• the contribution to costs of special renovations to make a dwelling accessible to disabled persons;
• the interest subsidy.

Forms / Online services

Authentic sources

Who to contact