The Government Council met on 6 December and decided to extend by a further six months the temporary tax measures originally taken for 2024 only, namely:
– “Boosted” Bëllegen Akt: raised from €30,000 to €40,000 (per person) for the purchase of a main residence.
– Bëllegen Akt for buy-to-let investors: a tax credit of €20,000 (per person) for homes under construction (VEFA) to be let for at least two years.
– Accelerated depreciation at 6%: over six years, extended for homes intended for letting.
– Lower tax on capital gains: the tax rate on capital gains from the sale of a property is reduced to a quarter of the overall rate.
These measures will now apply until 1 July 2025.
As a reminder, on 9 October 2024 the Minister of Finance had already announced that registration fees on property purchases would be halved between 1 October 2024 and 30 June 2025.
Link to the government website (in French): Summary of the Government Council of 6 December 2024 – The Luxembourg government