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:
Real estate income must be declared annually.
For these investment vehicles there are 2 reporting obligations:
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.
The investment vehicles affected by the real estate tax must:
These entities are:
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:
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.
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.
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.
The procedure for declaring income is to be carried out by the entity or their representative agent using a business eSpace in MyGuichet.lu:
Two scenarios are possible:
You can consult the help section on MyGuichet.lu.
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.
When paying the real estate tax, the following communication must be provided:
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).
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.
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.
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.
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:
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 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:
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.
The disposal of equity held by an investment vehicle:
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.
Déclaration informative sur la détention ou l'absence de détention d'un bien immobilier situé au Luxembourg et sur le changement de forme juridique
Fichier XSD pour la déclaration pour le prélèvement immobilier de l'année fiscale 2022 (Dépôt XML)
Fichier XSD pour la déclaration pour le prélèvement immobilier de l'année fiscale 2021 (Dépôt XML)