Financing Your Property Purchase

Plan your financing with confidence

Buying a property is an important financial commitment. Before making a decision, it is essential to prepare a clear and realistic financing plan.

Your budget should take into account the purchase price, acquisition costs, your personal contribution, your mortgage and any financial assistance you may be entitled to.

A well-prepared financing plan helps you understand your budget and your monthly payments, and allows you to approach your property purchase with greater peace of mind.

What costs should you plan for?

The purchase price is the main cost, but it does not always represent the total cost of your project.

Your budget may also include:

• registration and other acquisition costs;
• notary fees;
• mortgage and financing costs;
• outstanding balance insurance;
• possible bank fees;
• options or upgrades not included in the purchase price;
• certain connection or landscaping costs, depending on the project.

For a new property, the included features and services are described in the contractual documents and specifications.

The purchase price and VAT

Under certain conditions, Luxembourg applies a reduced VAT rate of 3% to the creation or renovation of a home intended as a main residence.

This can be particularly relevant when buying a new property or a property under construction.

The conditions for applying the 3% VAT rate depend on the buyer’s situation and the type of property.

Your personal contribution

Your personal contribution is the amount of money you invest directly into your property project.

It may come from your savings and, depending on your situation, from certain financial assistance schemes.

The amount required depends on several factors, including:

• the purchase price;
• acquisition costs;
• the amount the bank is willing to finance;
• your income;
• your existing financial commitments;
• your family situation;
• your repayment capacity.

There is therefore no single required level of personal contribution for every buyer.

The mortgage loan

A mortgage loan is usually the main source of financing for a property purchase.

Before approving a loan, the bank will assess your financial situation and your ability to make the repayments.

The amount you can borrow, the duration of the loan, the guarantees required and the other conditions depend on your personal situation and the property project.

We recommend comparing different offers and looking at the overall cost of the loan, rather than only the advertised interest rate.

Fixed or variable interest rate?

Choosing the right interest rate is an important part of your financing plan.

Fixed interest rate

The interest rate remains fixed for the period specified in the loan agreement.

This provides greater visibility over your monthly payments and the cost of the loan during that period.

The conditions for early repayment or changing the loan may vary depending on the agreement with your bank.

Variable interest rate

The interest rate may change during the loan period according to the conditions set out in the agreement.

A variable rate may allow you to benefit from lower interest rates if market conditions become more favourable. However, it also means that the cost of your loan may increase if interest rates rise.

A combination of both

Some banks offer financing solutions combining fixed and variable interest rate periods.

The right solution depends on your financial situation, your plans and your ability to accept possible changes in interest rates.

There is no single solution that is right for every buyer.

Government assistance

Depending on your income, family situation and the characteristics of your property, you may be eligible for various housing assistance schemes in Luxembourg.

These may include:

• the home ownership subsidy;
• the savings subsidy;
• the interest subsidy;
• the State guarantee;
• certain energy-related subsidies.

The eligibility conditions and amounts depend on each scheme and may change over time.

We recommend checking the assistance available to you when preparing your financing plan.

Build your financing plan

A financing plan compares the total cost of your project with the funds available to finance it.

TOTAL PROJECT COST

Purchase price

• Acquisition costs
• Financing costs
• Possible options and improvements

SOURCES OF FINANCING

Personal contribution

• Mortgage loan
• Possible government assistance

The aim is to make sure that your available resources cover the full cost of the project while keeping your monthly repayments at a level that suits your financial situation.

Before making a commitment

Before signing your purchase, we recommend asking your bank or financial advisor for a personalised financing simulation.

This will help you assess:

• your borrowing capacity;
• the amount of personal contribution required;
• your monthly repayments;
• the loan duration;
• the overall cost of the financing;
• the guarantees required;
• and any government assistance you may be entitled to.

Good financing preparation is the first step towards a successful property purchase.

Trend House

At Trend House, we want you to have a clear understanding of your project and its financial requirements.

Our team is available to provide you with information about our properties, their specifications and the documents you need to prepare your purchase.

Information updated in August 2026
The information on this page is provided for general information only and does not constitute legal, tax or financial advice. Financing conditions, government assistance and eligibility criteria may change. We recommend consulting your bank, financial advisor or the relevant authorities for information relating to your personal situation.

Property Taxation in Luxembourg

Key tax benefits to know before buying a property

Buying a property in Luxembourg involves various taxes and fees. However, when a property is intended to be your main and personal residence, certain tax benefits may significantly reduce the cost of your purchase.

The two main schemes to know are the “Bëllegen Akt”, which reduces registration and transcription duties, and the 3% VAT rate, which may apply to certain new construction or renovation projects.

These are two separate tax schemes, each with its own conditions.

Registration and transcription duties

When buying a property in Luxembourg, the standard registration and transcription duties are 7% of the purchase price:

• 6% registration duty
• 1% transcription duty

These duties are generally paid when the notarial deed is signed.

For buyers purchasing a property as their main and personal residence, the Bëllegen Akt may reduce these costs, subject to the applicable conditions.

The Bëllegen Akt

A tax credit for your main residence

The Bëllegen Akt is a tax credit on registration and transcription duties. It is available, under certain conditions, to individuals buying a property for their personal residence.

The tax credit is currently limited to:

€40,000 per buyer

When several buyers purchase a property together and each meets the eligibility requirements, each buyer may benefit from their own tax credit.

A minimum amount of €100 in registration and transcription duties remains payable in all cases.

Which properties can qualify?

The Bëllegen Akt may apply to:

• a house;
• an apartment;
• a building plot intended for your main residence;
• a property under construction;
• certain related outbuildings, such as a garage or garden.

The property must be intended to become your main, personal and effective residence.

Secondary residences, holiday homes and properties intended for rental or commercial use are generally not eligible.

Occupancy conditions

To benefit from the Bëllegen Akt, the buyer must personally and effectively occupy the property.

The property must be occupied:

• within 2 years from the date of the notarial deed;
• within 4 years when buying a building plot or a property under construction.

It must then be occupied continuously for at least 2 years.

In certain situations, an extension of the occupancy period may be requested from the AED with a written and justified request.

What happens if the conditions are not met?

If the conditions are not respected before the minimum occupancy period has been completed, the tax credit may have to be repaid in full, together with legal interest.

The buyer must also inform the Administration of Registration, Estates and VAT (AED) of any transfer or change in the use of the property within the required period.

How do you apply for the Bëllegen Akt?

The application is made by the notary when the notarial deed is signed.

The deed includes the buyer’s request and the commitments concerning the personal use of the property.

The tax credit can be used all at once. If the duties due on a purchase are lower than the available tax credit, the remaining amount may, under the applicable conditions, be used for future acquisitions until the credit has been fully used.

The 3% VAT rate

A reduced VAT rate for creating or renovating a home

Luxembourg applies a super-reduced VAT rate of 3% to certain construction and renovation work for a property intended as a main residence, subject to the applicable conditions.

The standard VAT rate is 17%.

For eligible projects, the difference between the standard rate and the 3% rate can therefore represent a significant tax benefit.

A tax benefit of up to €50,000 per home

The total VAT benefit is limited to:

€50,000 per home created or renovated

This limit applies per property, not per buyer.

How does the 3% VAT rate work?

Depending on the project and the circumstances, the 3% VAT rate can be applied directly or obtained through a refund.

Direct application of the 3% rate

For eligible construction or renovation work, the 3% VAT rate can be applied directly when the required approval has been obtained from the AED.

The application must be made before the relevant work begins.

VAT refund

If the 3% rate cannot be applied directly, the buyer may, where the conditions are met, request a refund of the difference between the VAT paid and the 3% rate from the AED.

The total tax benefit remains limited to €50,000 per home created or renovated.

An important condition: main residence

The VAT benefit is linked to the use of the property as a main residence.

The property must meet the conditions set by the applicable VAT rules.

If a property is used both as a main residence and for another purpose, the tax benefit may be granted in full if the area used as the main residence represents more than three quarters of the total area. Otherwise, the benefit may be granted proportionally.

The benefit may have to be repaid if the property is no longer used as a main residence in circumstances covered by the rules.

Bëllegen Akt and 3% VAT: two different tax benefits

The Bëllegen Akt and the 3% VAT rate are two separate schemes.

The Bëllegen Akt is a tax credit that reduces the registration and transcription duties when purchasing a property. It can reach €40,000 per buyer, subject to the applicable conditions.

The 3% VAT rate applies to certain construction and renovation operations for a property intended as a main residence. The total tax benefit is limited to €50,000 per home created or renovated.

Each scheme has its own rules and eligibility requirements.

What should you check before buying?

When buying a property for your main residence, it is important to check:

✓ the registration and transcription duties
✓ your eligibility for the Bëllegen Akt
✓ whether the 3% VAT rate can apply to your project
✓ the occupancy conditions
✓ any other government assistance you may be entitled to

These tax benefits can represent a significant financial advantage and should be considered when preparing your overall financing plan.

Plan your purchase with confidence

Every situation is different. The taxes and benefits applicable to your purchase depend on the type of property, its intended use and your personal circumstances.

Your notary can calculate the exact taxes applicable to your purchase and check the conditions for the different tax benefits.

Considering buying a new home?

Discover the properties currently available from Trend House and prepare your purchase with a clear view of your budget.

Information updated in August 2026
The information on this page is provided for general information only and does not constitute legal or tax advice. Tax rules, amounts and eligibility conditions may change. For information relating to your personal situation, we recommend consulting your notary or the Administration of Registration, Estates and VAT (AED).

Housing Assistance in Luxembourg

Government support for your property purchase

The Luxembourg State offers several financial support schemes to help households buy or build their main home.

Depending on your income, household situation and the characteristics of your property, you may be eligible for a home ownership incentive, savings subsidy, interest subsidy or State guarantee.

Some of these schemes can be combined, subject to the conditions of each programme.

Home Ownership Incentive

Financial support for buying or building your main home

The Home Ownership Incentive (Prime d’accession à la propriété) is a financial contribution from the Luxembourg State for people buying or building a home in Luxembourg with a mortgage.

The amount depends on the income and composition of your household and can range from:

€500 to €10,000

For a semi-detached house, the incentive is increased by 15%.

For a terraced house or a property in a condominium, the increase is 40%.

The main conditions include:

• the property must be located in Luxembourg;
• it must be your main and permanent residence;
• it must be financed with a mortgage;
• you must meet the applicable income and household conditions.

You must normally apply within one year from the date of the notarial purchase deed or the VEFA deed.

The property must generally be occupied as your main and permanent residence for at least 2 years after the incentive is paid. If the property cannot yet be occupied when the incentive is granted, you have up to 3 years to move in.

An interesting benefit for semi-detached houses

For buyers of a qualifying semi-detached house, the 15% increase can provide an additional financial benefit.

This can be particularly relevant when preparing the financing of a new semi-detached house.

Savings Subsidy

Support for buyers who have built up savings

The Savings Subsidy (Prime d’épargne) may be available if you have saved money specifically to finance the purchase or construction of your home.

It can reach:

€5,000 per beneficiary

To qualify, you must have saved your own funds with the same financial institution for at least one year and invest at least 90% of the eligible savings in the financing of your home.

A maximum savings period of 10 years can be taken into account.

The subsidy corresponds to 10% of the increase in savings per calendar year, with a maximum of €500 per year.

The Savings Subsidy is linked to the Home Ownership Incentive: you must have received the Home Ownership Incentive and meet its conditions.

Interest Subsidy

Help with the cost of your mortgage

The Luxembourg State may provide an Interest Subsidy (Subvention d’intérêt) to reduce the monthly cost of a mortgage used to buy, build or improve a home that serves as your main and permanent residence.

The subsidy rate depends on your household income and composition and can currently range from:

0.25% to 3.50%

For the calculation of the subsidy, mortgage loans are taken into account up to:

€200,000

This amount is increased by €20,000 per dependent child, up to a maximum amount of:

€280,000

The exact amount of the subsidy depends on your personal circumstances and the conditions applicable to your loan.

State Guarantee

Additional support when financing your home

When applying for a mortgage, banks normally require financial guarantees, such as personal funds and a mortgage on the property.

Under certain conditions, the Luxembourg State can guarantee part of your mortgage loan.

The maximum State guarantee is currently:

€303,862

The guarantee can be used for a loan intended to purchase, build or renovate a home in Luxembourg, subject to the applicable conditions.

The bank providing the mortgage must have signed an agreement with the Luxembourg State allowing it to use this guarantee.

The property must become your main and permanent residence.

Specific conditions also apply regarding your savings and your ownership of other properties.

Energy-related assistance

The Luxembourg State also offers various financial support schemes for energy efficiency and renewable energy.

These schemes can support certain technical installations and energy-related improvements, depending on the type of project and the applicable technical requirements.

For a newly built home, it is important to check the eligibility of the specific equipment included in the project. Not every energy-related subsidy automatically applies to a new construction.

The applicable conditions may depend on the technology, the date of the work or order and the technical requirements in force.

Can these subsidies be combined?

Some housing assistance schemes can be combined.

For example, the Home Ownership Incentive can be combined with other capital subsidies, subject to the applicable conditions.

However, there is an overall limit for certain capital subsidies.

The total amount of the Home Ownership Incentive, Savings Subsidy, Improvement Subsidy and Energy Renovation Improvement Subsidy is currently limited to:

€35,000 per beneficiary

This limit applies to the capital subsidies covered by the scheme.

The State Guarantee and the Interest Subsidy are separate mechanisms and should not be confused with this capital subsidy limit.

Who can benefit?

Housing assistance is not automatically available to every buyer.

Your eligibility may depend on:

✓ your household income
✓ the composition of your household
✓ your personal and financial situation
✓ whether you own another property
✓ the type of property you are buying
✓ your mortgage
✓ and whether the property will be your main and permanent residence

Each subsidy has its own conditions and application procedure.

How do you apply?

Applications for the main housing assistance schemes are submitted to the Single point of contact for housing assistance (Guichet unique des aides au logement).

Some applications have specific deadlines. For example, the Home Ownership Incentive must generally be requested within one year of the relevant purchase or VEFA deed.

It is therefore advisable to check the applicable conditions before making your purchase and as early as possible in your financing process.

The Luxembourg government’s official housing portal also provides information, online services and appointment options for housing assistance.

Prepare your financing carefully

Government assistance can represent a significant contribution to your property project.

However, these subsidies should be considered as part of your overall financing plan, rather than as guaranteed funding.

Before making a commitment, we recommend checking your eligibility and discussing your financing with your bank or financial advisor.

Trend House

At Trend House, we want our buyers to have a clear understanding of the financial aspects of their property purchase.

We provide you with the information and project documents needed to help you prepare your acquisition and financing.

A well-prepared project starts with a clear view of your financing options.

Information updated in August 2026
The information on this page is provided for general information only and does not constitute legal, tax or financial advice. Amounts, conditions and eligibility criteria may change. For information relating to your personal situation, we recommend consulting the Single point of contact for housing assistance, your bank or your financial advisor.

Insurance & Guarantees

Protecting your home and your investment

Buying a new home is an important investment. Different types of insurance and legal guarantees can help protect you, your family and your property.

It is important to distinguish between insurance related to your financing and legal guarantees related to the construction of your home.

Outstanding Balance Insurance

Protecting your family in the event of death

Outstanding Balance Insurance (assurance solde restant dû) is designed to cover all or part of the remaining mortgage balance if the insured person dies, according to the terms of the insurance policy.

This type of insurance can provide important protection for your family by reducing or settling the remaining mortgage debt.

Depending on the financing solution, your bank may require this type of insurance.

The cost and coverage depend on factors such as:

• the amount borrowed;
• the duration of the loan;
• your age;
• your health and personal situation;
• and the level of coverage selected.

Your bank or insurance provider can explain the available options and the conditions of the policy.

Insurance linked to your financing

When arranging a mortgage, the bank may require certain guarantees or insurance depending on your financial situation and the loan.

The exact requirements can vary from one bank to another.

We recommend checking these requirements early in the financing process so that the related costs can be included in your overall budget.

Construction Guarantees

Legal protection for your new home

When buying a newly built property, Luxembourg law provides specific legal responsibilities for construction defects.

These responsibilities depend on the type and nature of the work concerned.

For major works, the seller-constructor is generally liable for 10 years from the acceptance of the property, and in certain cases the period can be longer. Major works may include structural elements, the roof, certain external walls, foundations and other important parts of the building.

For minor works, the liability period is generally 2 years from acceptance. These may include certain interior elements such as woodwork, doors, window frames, radiators or wall finishes.

The exact legal responsibility depends on the nature of the defect and the part of the building concerned.

The 10-year guarantee

The term “10-year guarantee” is commonly used to describe the liability period applicable to major works.

It is important, however, to understand that this is a legal construction liability, rather than simply an insurance policy covering every problem that may occur during ten years.

The applicable rules depend on the type of defect, the work concerned and the circumstances of the case.

The 2-year guarantee

For minor works, the legal liability period is generally 2 years from the acceptance of the property.

This may cover certain non-structural elements of the building.

If you identify a defect after moving into your home, it is important to report it promptly and keep a written record of the issue and any communication concerning its repair.

The completion guarantee

When buying a property under construction through a VEFA, the sales contract must include the guarantee of completion of the building.

This guarantee is designed to protect the buyer if the developer is unable to fulfil its obligation to complete the project, according to the conditions set out in the guarantee and the contract.

Under the conditions provided by law, a refund guarantee may also be used instead of a completion guarantee.

This protection is one of the important features of buying a property under VEFA in Luxembourg.

The acceptance of your property

The acceptance of the property is an important stage in the purchase of a new home.

It allows the buyer and the developer to check the condition of the property and, where necessary, record any defects or outstanding items.

We recommend keeping the acceptance report and all documents relating to any subsequent repairs or interventions.

The date of acceptance is also an important reference point for the legal construction responsibilities described above.

Several levels of protection

When buying a new home, several forms of protection may apply:

Financing
→ mortgage guarantees and, where applicable, outstanding balance insurance.

Construction
→ legal responsibilities for major and minor works.

VEFA
→ completion or refund guarantee, according to the applicable legal and contractual arrangements.

Acceptance
→ a formal record of the condition of the property when it is handed over.

Together, these mechanisms provide an important level of protection for the buyer of a new property.

At Trend House

At Trend House, we believe that buying a new home should be a clear and transparent process.

We provide our buyers with the documents relating to their property and remain available throughout the different stages of the project.

A new home is more than a purchase. It is an investment in your future.

Information updated in August 2026
The information on this page is provided for general information only and does not constitute legal, insurance or financial advice. Insurance coverage and construction responsibilities depend on the specific contract, the property and the circumstances. We recommend consulting your notary, insurance provider or financial institution for advice relating to your personal situation.

Energy Performance

A more comfortable home, with lower energy needs and built to last

Energy performance is an essential part of a new home. It affects energy consumption, indoor comfort and the overall quality of the building.

A high-performance home combines several elements: good insulation, airtight construction, high-performance windows, efficient heating systems and, depending on the project, the use of renewable energy.

Understanding energy ratings

In Luxembourg, the energy performance of a building is assessed through its Energy Performance Certificate (EPC), also known as the Energy Passport.

The Energy Passport provides different ratings that show the building’s energy performance.

It takes into account factors such as:

• primary energy consumption;
• the energy performance of the building;
• heating requirements;
• CO₂ emissions;
• the characteristics of the building envelope;
• and the technical systems installed.

The better the energy rating, the higher the level of energy efficiency of the building.

A high-performance building envelope

The first step towards good energy performance is to reduce heat loss.

A well-designed building envelope combines:

✓ effective thermal insulation
✓ good airtightness
✓ high-performance windows
✓ high-performance glazing
✓ a design that helps reduce thermal bridges

The aim is simple: to keep heat inside during winter and limit overheating during summer, while maintaining a comfortable indoor environment.

Comfort in every season

Energy performance is not only about reducing energy consumption.

A well-insulated and properly designed home can also provide greater everyday comfort.

A high-performance building envelope can help to:

• maintain a more stable indoor temperature;
• reduce the feeling of cold walls;
• limit drafts;
• improve comfort during winter;
• reduce heating needs;
• improve comfort during hot periods.

Energy performance therefore contributes directly to the quality of life inside the home.

Efficient energy systems

Technical systems also play an important role in the overall performance of a home.

Depending on the project, new homes may include solutions such as:

Heat pump

A heat pump efficiently provides heating by using energy from the outside environment.

It is particularly well suited to modern, energy-efficient new homes.

Low-temperature heating

Combined, for example, with underfloor heating, a low-temperature system distributes heat evenly throughout the home while operating at relatively low water temperatures.

Mechanical ventilation

In highly energy-efficient and airtight buildings, properly designed ventilation helps maintain good indoor air quality and control humidity.

Depending on the project, a ventilation system with heat recovery can also help reduce energy losses caused by air renewal.

A complete approach to energy performance

Energy performance does not depend on a single piece of equipment.

It results from the combination of several elements:

Insulation + airtightness + high-performance windows + orientation + efficient technical systems + ventilation

This overall approach helps create a home that is both energy-efficient and comfortable to live in.

Energy performance and running costs

An energy-efficient home generally requires less energy to maintain a comfortable indoor temperature.

This can help reduce energy costs, although actual consumption always depends on how the home is used, the desired indoor temperature, the occupants’ habits and weather conditions.

It is therefore important to distinguish between the building’s calculated energy performance, as shown in the Energy Passport, and its actual energy consumption, which depends on how the home is used.

An investment for the future

Energy performance is also an important factor in the long-term value of a property.

Energy requirements are evolving, and buyers are increasingly paying attention to:

• energy costs;
• thermal comfort;
• indoor air quality;
• the use of renewable energy;
• the quality of the building envelope;
• and the environmental impact of the home.

Choosing an energy-efficient new home therefore also means anticipating the expectations and requirements of tomorrow.

At Trend House

At Trend House, we pay particular attention to the quality of the building envelope, energy efficiency and the comfort of the occupants.

Each project is designed according to its specific characteristics, its location, its architecture and the energy requirements that apply to it.

The exact performance of each property is shown in its Energy Passport and in the technical documents for the project.

An energy-efficient home is, above all, a home that is comfortable to live in.

Discover our projects and their energy performance.

Information updated in August 2026
The energy performance, equipment and technical features vary from one project to another. The information on this page is general and does not replace the Energy Passport or the technical documents relating to each property.

Useful Links

Key resources for your property project

Rules, financial assistance and procedures relating to housing, taxation and energy may change over time.
We recommend consulting the official sources directly to obtain the most up-to-date information.

Guichet.lu

The official portal of the Luxembourg State for administrative procedures and information on housing, property purchases, construction and financial assistance.

→ Visit Guichet.lu: https://guichet.public.lu/fr/citoyens.html

Ministry of Housing

Official information on housing in Luxembourg, government assistance and housing policies.

→ Visit the Ministry of Housing website: https://logement.public.lu/fr.html

AED – Registration Duties, Estates and VAT

Official information on registration duties, transcription duties and VAT, particularly in relation to property purchases.

→ Visit the AED website: https://aed.gouvernement.lu/fr.html

Direct Tax Administration

Official information on Luxembourg taxation and tax obligations.

→ Visit the ACD website: https://impotsdirects.public.lu/fr.html

MyGuichet.lu

Carry out a wide range of administrative procedures online and track your applications with the Luxembourg State.

→ Visit MyGuichet.lu: https://guichet.public.lu/fr/citoyens/myguichet.html

Energy Performance Certificate

Official information on the Energy Performance Certificate (EPC), energy ratings and the requirements applicable to buildings.

→ Find out more about the Energy Performance Certificate: https://guichet.public.lu/fr/citoyens.html

Financial Aid Simulator – Klima-Agence

A practical tool to identify the financial assistance that may be available for your project.

The simulator can be used to search for assistance relating to new construction, renovation, heating, renewable energy and electricity production.

→ Simulate the available financial assistance: https://www.klima-agence.lu/fr

Housing Observatory

Find information and analysis on property prices, real estate transactions and developments in the Luxembourg housing market.

→ Discover the Housing Observatory: https://mlogat.gouvernement.lu/fr/departement-logement/observatoire-de-habitat.html

Up-to-date information

The information provided by Trend House is intended to help you better understand your property project. It does not replace official information or advice from a notary, bank or other qualified professional.

For any questions relating to your personal situation, we recommend checking the current requirements directly with the relevant authority.

Information updated in August 2026
The information and links provided are for guidance only. The content of official websites may change independently of Trend House.