Investment vehicles: declaration of real estate income
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Investment vehicles that receive or realise real estate income must declare and pay the real estate tax (prélèvement immobilier) to the Luxembourg Inland Revenue (Administration des contributions directes – ACD) annually for income from the previous year (e.g. for 2022 income, the tax is paid in 2023).
Income from real estate can be:
- income from the rental of a real estate asset located in Luxembourg; or
- capital gains from the disposal of a real estate asset located in Luxembourg; or
- income from the disposal of equity.
Real estate income must be declared annually.
For these investment vehicles there are 2 reporting obligations:
- the obligation to provide information: whether the investment vehicles receive or realise income from real estate or do not receive or realise such income in the calendar years 2020 and 2021. In these cases, the notification to the ACD had to be made by 31 May 2022 at the latest;
- the obligation to declare the real estate tax.
Even if they do not receive or realise such income, investment vehicles are required to notify the Luxembourg Inland Revenue accordingly as part of the inventory, under penalty of a EUR 10,000 fine.
Who is concerned
The investment vehicles affected by the real estate tax must:
- be established in Luxembourg; and
- have a legal personality distinct from that of their partners.
These entities are:
- undertakings for collective investment (UCIs) which fall under Part II of the amended law of 17 December 2010;
- Specialised Investment Funds (SIF);
- Reserved Alternative Investment Funds (RAIF);
except for those that are created in the form of a limited partnership.
An investment vehicle must also declare and pay income from real estate if it holds equity in:
- a partnership (société en nom collectif – SENC);
- a limited partnership (société en commandite simple);
- a special limited partnership (société en commandite spéciale);
- an economic interest group (groupement d’intérêt économique – GIE);
- a European economic interest group (EEIG);
- a temporary commercial company (société commerciale momentanée);
- a joint venture (société commerciale en participation);
- a civil company (société civile);
- a mutual investment fund (fonds commun de placement);
that receives or realises income from real estate located in Luxembourg. The income is then deemed to have been received or realised by the investment vehicle.
Deadlines
The information obligation only has to be fulfilled once, and by 31 May 2022 at the latest.
In the event of collection or realisation of income from real estate located in Luxembourg, this income and the tax levy applied during a calendar year must be declared no later than 31 May following the calendar year of the collection or realisation of the income in question.
Costs
The real estate tax rate is set at 20 % of the gross amount of the income realised from property that is located in Luxembourg and subject to the real estate tax.
How to proceed
Declaration of real estate income
The procedure for declaring income is to be carried out by the entity or their representative agent using a business eSpace in MyGuichet.lu:
- either by using the MyGuichet.lu online assistant (see 'Forms / Online services' below);
- or by submitting an XML file (see 'Forms / Online services' below).
How to create a business eSpace on MyGuichet.lu
There are 2 possible scenarios:
- You are a new user of MyGuichet.lu. You must:
- first register on MyGuichet.lu; and
- then create a business eSpace.
- You already have a private eSpace on MyGuichet.lu. You can directly create a business eSpace without having to register again.
Further information as well as tutorials in relation with the business eSpace are available in our dedicated help page.
Supporting documents
Investment vehicles that are subject to the real estate tax must be able to provide all the relevant documents to support the amounts of the real estate income and the declared real estate tax.
They must submit the auditor's report that certifies the income in question.
Payment of the tax
When paying the real estate tax, the following communication must be provided:
- the tax identification number (TIN) of the investment vehicle; and
- the code '029000'; and
- the tax year.
For example, the reference for the payment of the real estate tax applying to 2022 would look like this: '11111111111 029000 2022'.
The first 11 digits correspond to the TIN, the next 6 digits indicate the tax category, and the last 4 digits are the tax year.
Payment should be made by wire transfer to the Ettelbruck revenue office (CCPL account: BIC CCPLLULL – IBAN LU13 1111 0069 6679 0000).
Reimbursement
If the real estate tax is paid in error or if it is overpaid, the unduly paid tax may be reimbursed upon request.
The application for reimbursement must be submitted to the Luxembourg Inland Revenue's Office for Withholding Tax on Interest before the end of the calendar year following the calendar year of the payment of the real estate tax in question.
Late payment interest
If the investment vehicle does not pay the real estate tax to which it is subject within the required deadline, late payment interest may be claimed.
Good to know
The real estate tax is not deductible when the amount of the real estate income is determined, nor is it creditable or deductible by anyone.
Income from the rental of property
Gross income from the rental of real estate in Luxembourg and received by an investment vehicle is fully subject to real estate tax.
However, the proportion of this income that corresponds to the proportionate share of equity held by the investment vehicle during the calendar year must be taken into account, if the equity is held:
- in one of the undertakings listed under 'Who is concerned'; or
- through one or more of the undertakings listed under 'Who is concerned'.
The proportion that corresponds to this proportionate share is subject to the real estate tax.
Capital gains from the disposal of a real estate asset
Capital gains from the disposal of a real estate asset in Luxembourg and realised by an investment vehicle is fully subject to real estate tax.
However, the proportion of the capital gain corresponding to the proportionate share of equity held by the investment vehicle must be taken into account, if the equity is held:
- in one of the undertakings listed under 'Who is concerned'; or
- through one or more of the undertakings listed under 'Who is concerned'.
The proportion that corresponds to the proportionate share is subject to the real estate tax.
The proportionate share is determined when the capital gain from the disposal of the real estate asset in question is realised.
Income from the disposal of equity.
The disposal of equity held by an investment vehicle:
- in an undertaking listed under 'Who is concerned' when this undertaking or mutual investment fund holds an asset in Luxembourg; or
- in an undertaking listed under 'Who is concerned' when this undertaking or mutual investment fund holds real estate in Luxembourg through one or more undertakings;
is deemed to be a disposal of this real estate asset.
Income from the disposal of equity is subject to the real estate tax to the extent of the proportionate share of equity held by the investment vehicle in this first undertaking.
Online services and forms
Online services
Tax year 2023
Tax year 2022
Tax year 2021
Who to contact
Department for Withholding Tax on Interest
-
Department for Withholding Tax on Interest
- Address:
-
111, rue de Hollerich
L-1741
Luxembourg
Luxembourg
L-2982 Luxembourg
- Phone:
- (+352) 247 52 459
- Fax:
- (+352) 247 52 438
- Email address:
- sersri@co.etat.lu
Related procedures and links
Links
Further information
-
Prélèvement immobilier
sur le site de l'Administration des contributions directes (ACD)
-
Exemple de la déclaration pour le prélèvement immobilier
Xml • 3 Ko
Legal references
-
Loi modifiée du 17 décembre 2010
concernant les organismes de placement collectif
-
Loi modifiée du 13 février 2007
relative aux fonds d'investissement spécialisés
-
Loi modifiée du 23 juillet 2016
relative aux fonds d'investissement alternatifs réservés
-
Loi du 19 décembre 2020
sur le budget des recettes et des dépenses de l'État pour l'exercice 2021
-
Loi modifiée du 4 décembre 1967
concernant l'impôt sur le revenu
-
Abgabenordnung vom 22. Mai 1931
(Loi générale des impôts du 22 mai 1931)
-
Loi modifiée du 16 octobre 1934
sur l'impôt sur la fortune - (Vermögenssteuergesetz)
