On 25 June 2025, the Luxembourg Parliament is expected to adopt the draft law extending several temporary housing tax incentives originally introduced in 2024. These measures, which were set to expire on 30 June 2025, will now remain accessible until 30 September 2025, provided that preliminary agreements are registered with the tax authorities by 30 June 2025.
The draft law introduces transitional mechanisms to accommodate delays in notarial processing, ensuring that taxpayers can still benefit from the housing tax incentives despite administrative bottlenecks.
In addition, the government has proposed making the increased “Bëllegen Akt” tax credit a permanent fixture, offering a fixed amount of EUR 40,000 per individual acquiring residential property.
In this article, our Tax Partner, Samantha Hauw, and our Chief Knowledge Officer, Marie Bentley, describe procedural mechanism put in place to provide flexibility for purchasers and vendors regarding each of the available tax incentives.