Main housing assistance programs
Are you moving to Luxembourg and considering buying or renting a home? Housing costs are particularly high there, especially in the Central region. However, there are numerous financial assistance programs—which are regularly reviewed—that can ease the financial burden and help you settle in.
Whether you’re a prospective renter, prospective homeowner, or already settled, it’s essential to fully understand the available programs to optimize your real estate plans in Luxembourg.
A Tight Housing Market
Housing is one of the main expenses for households in Luxembourg. After several years of sharp increases, purchase prices are tending to stabilize or even decline slightly. In contrast, rents continue to rise, which can make it difficult to access housing, particularly for newcomers.
In this context, public assistance plays a key role in supporting residents, particularly low-income households.
The Housing Assistance Service: Your Key Point of Contact
The Housing Assistance Service is the primary public agency for all housing-related matters in Luxembourg. It assists individuals with administrative and technical procedures and provides information on all available assistance programs.
You can contact them to:
- Get information on financial assistance
- Understand your rights as a tenant
- Get assistance with a home purchase or renovation project
Rental Assistance: Support for Low-Income Households
Specific assistance programs are available to facilitate access to rental housing, subject to income and residency requirements in Luxembourg.
As a tenant, you may be eligible for financial assistance to rent a home in Luxembourg. This rental assistance is intended for households residing in the Grand Duchy of Luxembourg whose income does not allow them to afford housing. To qualify, you must not already own real estate and must have had a regular income in Luxembourg for at least 3 months.
Rent subsidy
Low-income households may receive monthly assistance ranging from €200 to €400, depending on their family situation and income. The income limits have recently been raised to account for the rising cost of living. An additional €80 per child is now provided.
Government Assistance for a Rental Guarantee
If you are unable to pay the security deposit required upon signing the lease ( up to 3 months’ rent), the government may act as a guarantor under certain conditions:
- Housing located in Luxembourg and rented from a private landlord
- The household’s primary and permanent residence
- Rent in line with market rates and the terms of the residential lease agreement.
- The rental guarantee is equivalent to a maximum of 3 months’ rent excluding utilities and does not exceed 50% of the household’s income.
Subsidized Housing
Certain housing units in Luxembourg are reserved by the government for low-income households, based on priority. These units are available through the Housing Fund, the National Society for Affordable Housing, or the Social Services Office of the municipalities.
Social Housing Agency
Housing is made available for 3 years to low-income households in exchange for social support.
More information on guichet.lu regarding rental assistance in Luxembourg.
Assistance with purchasing or building a home
For households looking to purchase their primary residence, several programs are available to help reduce the overall cost of the project.
- Purchase grant: between €500 and €10,000, depending on income and family situation
- Interest subsidy: reduction in the interest rate on a mortgage loan
- Home savings bonus: up to €5,000
- Government guarantee: to facilitate access to credit
- Reduced notary fees (Bëllegen Akt): tax credit of up to €40,000 per person
Reduced notary fees when purchasing a home under the Bellegen Akt
In addition to all these benefits, you can receive a tax credit of up to €40,000 per individual on notary fees. This measure supports homeownership in Luxembourg. It helps reduce the costs incurred when signing the deed of purchase for a property intended as a primary residence.
Grants for the purchase or construction of a home
In Luxembourg, individuals wishing to purchase or build a home in Luxembourg to serve as their primary residence may qualify for various forms of assistance to help finance their project.
This assistance may take the form of capital and/or interest subsidies or help secure a loan when purchasing a home in the Grand Duchy. The applicant must not own another home.
Subsidy for low-income households
Only low-income households are eligible for assistance with the purchase of a primary residence in Luxembourg. Additionally , they must not already own a home in Luxembourg or abroad.
This grant is awarded based on income, family situation, and type of housing. The grant ranges from 500 to 10,000 euros, with an additional amount for condominiums or townhouses. The property must be retained for at least 10 years.
Mortgage Interest Subsidy
This interest subsidy may be granted to individuals with one or more children who have taken out a mortgage of up to 200,000 euros for the construction, purchase, or improvement of their home. The maximum loanamount is increased by 20,000 euros per dependent child (up to an additional 80,000 euros).
The interest subsidy reduces monthly payments by applying an interest rate reduction of between 0.25% and 2.45%, depending on your income and family situation.
Home Savings Bonus
The home savings bonus is granted by the government as a one-time payment, subject to certain conditions. Amounting to a maximum of €5,000, it corresponds to the interest and bonuses accrued on the savings account or home savings account, at least 90% of which has been withdrawn to finance the purchase of a home.
Government Guarantee on Mortgage Loans
Under certain conditions, the government may help guarantee your mortgage up to €294,824.40. This guarantee applies to a loan financing at least 60% of your real estate project. The application must be made as part of a prior home savings plan of at least 1,000 euros per year, for a minimum period of 3 years, with an approved bank.
Additional subsidy for architect and consulting engineer fees
Recipients of a construction grant for the construction of a new single-family home may receive an additional grant of up to €1,250, corresponding to half of the costs.
Housing Renovation Assistance
VAT refund for renovation work on homes over 10 years old
Regardless of your income, you may be eligible for up to €50,000 in VAT refunds under the super-reduced VAT rate of 3% for work performed on a primary residence over 10 years old or as part of a new construction project.
Refunds are cumulative.
Housing Improvement Grant in Luxembourg
This grant, equivalent to 40% of the total cost of the work excluding VAT, is available in particular for work aimed at restoring health and safety in a home (over 15 years old).
It may also be granted for the creation of new rooms or the expansion of existing ones. Renovation work must be sustainable: rainwater harvesting, reduced energy consumption, and environmental preservation.
Special Adaptations for People with Specific Needs
Financial assistance is also available covering up to 60% of the cost of the work, with a maximum of 20,000 euros. It is granted once, based on income and family circumstances , for work intended to improve livability for a person with reduced mobility or special needs.
Learn more about government assistance for financing your housing.
Have you decided to take the plunge and buy or rent a home? Find intermediaries here to help you search for a home to buy or rent.
You can also find more advice on housing assistance during National Housing Week.
Improving Your Home’s Energy Efficiency: A Key Way to Save Money
Luxembourg strongly encourages homeowners to improve the energy efficiency of their homes. These measures help reduce energy bills, improve living comfort, and increase property value.
The Klimabonus Program
The Klimabonus Wunnen program provides financial support for work aimed at reducing energy consumption in homes. It can cover a significant portion of the investment costs, particularly for:
- Thermal insulation (roof, walls, floors)
- Window replacement
- Installation of sustainable heating systems (heat pumps, biomass)
- Controlled ventilation
- Solar installations, including photovoltaic panels
In some cases, grants can cover more than 50% of the cost of the work, depending on the energy efficiency achieved.
Focus on Photovoltaics
The installation of photovoltaic panels is particularly encouraged in Luxembourg. It allows you to generate your own electricity, reduce your dependence on the grid, and achieve long-term savings.
Specific subsidies are available that can cover a significant portion of the investment, particularly through the Klimabonus program or via mechanisms such as third-party payment.
To learn more: discover in detail how it works, the costs, and the potential savings in our article dedicated to solar power in Luxembourg.
Klimaprêt: financing your home energy efficiency improvements
The Klimaprêt offers a reduced interest rate (up to 1.5%) to finance energy-efficiency renovations in a home over 10 years old that serves as your primary residence. You can benefit from a subsidized interest rate of up to 100,000 euros under certain conditions.
Assistance for the LENOZ Housing Sustainability Certificate
The LENOZ certification(Lëtzebuerger Nohaltegkeets-Zertifizéierung fir Wunngebaier) assesses the sustainability of housing. As part of the process to obtain this certificate, you, as the homeowner, can receive financial assistance of up to €1,500 for a single-family home and €750 for an apartment in a multi-unit building
Energy Support and Consulting
Before starting any work, it is often necessary to consult with a certified energy expert. This assessment helps identify priority work and optimize available financial assistance.
The My Energy program also offers free support and advice for homeowners.
Important note for expats
As an expat, certain financial aid programs are subject to residency, income, or length-of-stay requirements. It is therefore recommended that you verify your eligibility in advance and seek assistance if necessary.
Furthermore, incorporating energy efficiency into your real estate project from the start can be a real advantage, both in terms of budget and quality of life.
Learn more
Are you planning to rent, buy, or renovate a home in Luxembourg? Take the time to explore the available assistance programs and surround yourself with the right professionals to ensure your project’s success.
You can also attend events such as National Housing Week to get up-to-date information and meet industry professionals.
Articles de la catégorie Housing in Luxembourg
Buying real estate: new or old?
Are you considering buying real estate in Luxembourg? Are you unsure whether to buy new or old? With our real estate specialists, we take stock of the advantages of each type of purchase.
How to maintain your home and recycle your waste
Luxembourg residents maintain their homes. This is a legal obligation. As a result, they also throw away a lot of waste.
Find a roommate in Luxembourg
Are you looking for a shared apartment in Luxembourg and don't know where to start? Here are our tips for finding shared accommodation in Luxembourg.