This enhanced tax credit applies to notarial deeds executed as of 1 July 2025 and is strictly reserved for individuals acquiring a property intended to serve as their main residence. The law was officially published in the Journal Officiel on 4 July 2025, after having been adopted in plenary session on 25 June 2025.

Originally conceived as part of a temporary fiscal package introduced in January 2024 to stabilise the real estate and construction sectors in response to a cooling real estate market, the increased tax credit has now been adopted as a permanent measure.

The initial package, which also included other short-term tax benefits, was scheduled to expire on 30 June 2025. Recognising the positive market impact and continued need for support, the government has opted to maintain the key incentive of the package — the “Bëllegen Akt” — beyond its original deadline.

The “Bëllegen Akt” — which literally means “cheap deed” — aims to reduce the financial burden of notarial and registration fees associated with real estate transactions. The newly increased threshold of €40,000 can be allocated against registration duties and transcription fees, effectively lowering upfront costs for first-time homeowners. In the case of a jointly purchased property by two eligible individuals, the total benefit may reach up to €80,000.

The government’s broader objective remains to stimulate housing supply, preserve employment in the construction and crafts sectors, and ease access to homeownership, particularly for young buyers and middle-income households. In a context of rising property prices and tight housing availability, this reform reinforces Luxembourg’s long-term housing policy strategy.