Are you moving to Luxembourg and looking to buy or rent a home? Would you like to know if there are any financial subsidies available to help you define your budget?
To help you plan your real estate project, here you'll find all the information you need on the financial assistance available for buying a property or renting your home.
Housing costs in Luxembourg
Housing is very expensive in Luxembourg. The cost of housing weighs heavily on household budgets in Luxembourg. Housing prices have risen sharply in recent years, both for sale and rent. While purchase prices are now tending to stabilize or even fall, the same cannot be said of rental prices. Rental prices continue to soar.
Financial assistance for housing in Luxembourg
Service des Aides au logement à Luxembourg
In Luxembourg, a public service is there to answer all your questions about housing. The Service des Aides au logement (Housing Assistance Service) will help you with any technical or administrative questions you may have.
Don't hesitate to contact the Service des Aides au Logement for information on the assistance available to you, or for questions about your rent and your rights as a tenant.
The housing assistance service provides information on housing and the assistance available to private individuals in Luxembourg. It also informs public and private developers about state aid available for housing construction.
What rental assistance is available for low-income households?
You can benefit from financial assistance for renting your home in Luxembourg. This aid is targeted at households resident in the Grand Duchy of Luxembourg, who do not own a property, have had a regular income in Luxembourg for at least 3 months and whose income does not allow them to find accommodation.
Rent subsidies in Luxembourg
The most disadvantaged households can benefit from rent subsidies when renting accommodation in Luxembourg. The amount depends on household composition and income.
State aid to finance a rental guarantee
This scheme is aimed at households unable to pay the deposit required when signing a lease . They can benefit from the state guarantee. When signing a lease, the tenant must pay the landlord a rental deposit of up to 3 months' rent. Tenants can benefit from the state guarantee if they meet the necessary conditions.
Renting subsidized housing in Luxembourg
Certain housing units in Luxembourg are reserved by the government for low-income households, according to priority. These homes are available from the Fonds du Logement, the Société Nationale des Habitations à Bon Marché or the Office Social des communes.
Social real estate agency
Housing is made available to low-income households for 3 years, in return for social support.
More information on guichet.lu for rental assistance in Luxembourg.
Home purchase or construction subsidies
In Luxembourg, people wishing to buy or build a home can benefit from a wide range of housing grants to help them finance their project.
Depending on your situation, you may benefit from a number of capital grants, interest subsidies or guarantees when buying a home in the Grand Duchy.
Housing acquisition or construction bonus
Only low-income households are eligible for assistance in acquiring a principal residence in Luxembourg. In addition, they must not already own a home in Luxembourg or abroad.
The allowance is based on income, marital status and housing type. The bonus ranges from 250 to 9,700 euros, with a supplement for condominiums or semi-detached houses. To qualify, the beneficiary must not own another home in Luxembourg or abroad. The home must also be kept for at least 10 years.
Interest subsidies on mortgage loans
This interest subsidy can be granted to people with one or more children who have taken out a mortgage loan to build, acquire or improve their home. The interest subsidy reduces monthly expenses by applying an interest subsidy of 0.50% per dependent child to the mortgage rate.
Interest subsidies on real estate loans
This income-based subsidy applies at a rate of between 0.575% and 2.45% on the rate of the loan granted, up to a maximum mortgage amount of 175,000 euros.
Home savings bonus
It is granted once only under certain conditions. Up to a maximum of 5,000 euros, it corresponds to the interest and bonuses on the savings account or home savings account, at least 90% of which has been used to finance your home.
State guarantee on home loan
Under certain conditions, the French government can help guarantee your home loan up to a maximum of 153,135 euros, as part of a prior home savings plan.
Additional premium for architects' and engineers' fees
Beneficiaries of a construction bonus for the construction of a new single-family home can obtain an additional bonus of 1,500 euros.
Klima Prêt, improving the energy performance of homes
If you've taken out a loan for an energy-efficiency renovation, you can benefit from a zero-rate climate loan of up to 50,000 euros over 15 years, or a reduced-rate loan of up to 100,000 euros under certain conditions.
The project must be carried out with the support of a certified energy advisor. If you are a homeowner and would like to improve theenergy efficiency of your home, you can benefit from free advice under the My Energy scheme. Find out more about the energy passport.
Help with the LENOZ housing sustainability certificate
LENOZ certification assesses the sustainability of housing. You can obtain financial assistance of up to 1,500 euros for a single-family home and 750 euros for a multi-family dwelling.
VAT refund for work on housing
Whatever your income, you can benefit from up to 50,000 euros in VAT refunds under the reduced VAT scheme for work carried out in an owner-occupied dwelling or as part of a new build.
Reduced notary fees with Bellegen Akt
If you are buying your first property in the Grand Duchy, you can benefit from a tax credit of up to 40,000 euros per head on notary fees .
More information on guichet.lu for financial incentives available when buying a home.
Renovating a home or making special improvements
In addition to the aids listed above, if you want to renovate or carry out work on your home, you can obtain a number of financial aids from the government.
Home improvement bonus in Luxembourg
Assistance of up to 10,000 euros is available for work to restore the health and safety of a dwelling (over 15 years old), as well as for the creation of new rooms or the enlargement of existing ones. Assistance can also be granted for renovation work aimed at sustainable development: rainwater harvesting, lower energy consumption, environmental protection.
Special facilities for people with special needs
Financial assistance is also available up to 60% of the cost of the work, to a maximum of 15,000 euros. It is granted once only, depending on income and family situation, for work designed to improve habitability for the benefit of a person with reduced mobility or special needs.