On 15 July 2025, the Luxembourg government submitted a series of governmental amendments to draft law n°8082A on property tax (impôt foncier, “IFON”) and the tax on land mobilisation (impôt à la mobilisation de terrains, “IMOB”). The proposed legislative package seeks to modernise and update the property tax regime while fostering housing development by discouraging speculative land retention.
The main objectives of the property tax reform are to eliminate the inequalities generated by the current IFON and to create a new valuation model that will be more objective, transparent and fair. Another challenge of this reform is the fight against the notorious housing shortage in Luxembourg. The purpose of the IMOB is to encourage the effective construction of housing on the land, dedicated to this end.
In this article, our Tax Partner Jamal Afakir and our Chief Knowledge Officer, Marie Bentley, present the key amendments introduced in the draft law and their impact on the proposed IFON and IMOB.