You are moving to Luxembourg and want to buy or rent a house? Do you want to know if there are financial grants to help you define your budget?
To help you plan your real estate project, you will find here all the information on the financial aid available for the purchase of a property or the rental of your home.
Service for Housing Assistance in Luxembourg
In Luxembourg, a public service is there to answer all your questions about housing. The Housing Assistance Service assists you in your efforts, whether they are technical or administrative in nature. This service also provides you with personalized information about your housing rights.
Do not hesitate to contact this service to obtain information on the assistance available to a person or household with modest income or for questions related to your rent and your rights as a tenant.
The housing assistance service provides information on housing and the assistance available to individuals in Luxembourg. It also informs public and private promoters about the state aid they can benefit from when building housing.
Financial aid for housing
Renting a home, what help for low-income households?
Housing subsidies are available for renting your home in Luxembourg. These aids are targeted at households residing in the Grand Duchy of Luxembourg, who do not own a property, who have had a regular income in Luxembourg for at least 3 months and whose income does not allow them to find housing.
- Rent subsidy: the most disadvantaged households can benefit from it when renting a house in Luxembourg. The amount is set between 134 and 294 euros per month depending on the composition and income of the household.
- State aid for financing a rental guarantee: this system is intended for households that cannot pay the deposit required when signing a lease, to benefit from the State’s guarantee. Indeed, when signing the lease contract, the tenant must pay a rental guarantee to the landlord up to 3 months of rent. The tenant can benefit from the state guarantee if he meets the necessary conditions.
- Renting subsidized housing: certain housing units are reserved by the state for low-income households, by degree of priority. These homes are available from the Housing Fund, the National Low-Cost Housing Company or the Social Office of the municipalities.
- The social real estate agency: housing is made available for 3 years to low-income households in exchange for social monitoring.
More information on guichet.lu for rental assistance in Luxembourg.
Subsidies for the purchase or construction of a home
In Luxembourg, people wishing to buy or build a home can benefit from multiple housing subsidies to help them finance their project. Only low-income households are eligible for the purchase of a main residence in Luxembourg, provided they do not already own a home in Luxembourg or abroad.
Depending on your situation, you can benefit from a certain number of aids in capital, in interest or in guarantee during the acquisition of a house in the Grand Duchy.
- The acquisition or construction bonus: it is granted according to income, family situation and type of housing. The premium ranges from 250 to 9,700 euros, with an increase for condominiums or semi-detached houses. In order to benefit from it, the beneficiary must not be the owner of another home in Luxembourg or abroad. The home must also be kept for at least 10 years.
- Interest subsidy: This interest subsidy can be granted to people with one or more children who have taken out a mortgage loan for the construction, acquisition or improvement of their home. It allows you to reduce your monthly expenses by applying an interest subsidy of 0.50% per dependent child on the mortgage rate.
- The interest subsidy is applicable according to income, at a rate between 0.575% and 2.45% on the rate of the loan granted, up to a maximum amount of 175,000 euros of mortgage.
- The savings bonus: it is granted only once under certain conditions. 5,000 maximum, it corresponds to the interest and bonuses on the savings account or housing savings account liquidated to at least 90% for the financing of its housing.
- The State guarantee: under certain conditions, the State can help guarantee your real estate loan up to an amount of 153,135 euros, within the framework of a prior housing savings.
- Additional bonus for architect and engineer costs: beneficiaries of a construction bonus for the construction of a new single-family home can obtain an additional bonus of 1,500 euros.
- Klima loan: if a loan has been taken out for an energy-efficient renovation of the house, you can benefit from a zero-interest climate loan of up to 50,000 euros over 15 years or a reduced-interest loan of up to 100,000 euros under certain conditions. To benefit from it, the project must be carried out with the support of a certified energy consultant.
- Help for the LENOZ certificate: the LENOZ certification allows to prove the durability of the housing. You can obtain financial assistance in the context of obtaining this certificate up to 1,500 euros for a single-family home and 750 euros for an apartment in a collective building.
- Refund of VAT up to 50,000 euros in the context of reduced VAT for work carried out in a dwelling inhabited by the owner or in the context of a new construction.
- Reduced notary fees in the Bellegen Akt. In case of a first real estate purchase in the Grand Duchy, you can benefit from a tax credit of up to 20,000 euros per head on the notary fees .
- My Energy: free advice for homeowners wishing to improve theenergy efficiency of their home.
More information on guichet.lu for the financial incentives available when buying a house.
Renovate or make special improvements to a home
In addition to the aforementioned aids, if you wish to renovate your home or carry out work on it, you can obtain a certain number of financial aids from the state.
- Improvement bonus: this aid of up to 10,000 euros is available for work to restore health and safety in a dwelling (more than 15 years old), as well as for the creation of new rooms or the expansion of existing rooms. These aids can also be granted during renovation work aimed at sustainable renovation: rainwater recovery, lower energy consumption, preservation of the environment.
- Special arrangements for the benefit of people with reduced mobility or special needs: financial assistance is also available up to 60% of the amount of the work with a maximum of 15,000 euros. It is granted only once depending on income and family situation.
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