Can I claim 3% VAT and Bëllegen Akt for a new build in Luxembourg?

Yes, absolutely. The 3% super-reduced VAT and the Bëllegen Akt tax credit are two completely independent forms of assistance that can be combined without restriction. The reduced VAT applies to construction costs (maximum saving €50,000), while the Bëllegen Akt is a tax credit applied to notary fees on the purchase of land or property (€40,000 per person, €80,000 for a couple).

When should I apply for 3% VAT for a new build?

It is essential to apply for VAT 3% approval BEFORE starting any work. Contact the Administration de l'Enregistrement, des Domaines et de la TVA (AEDT) as soon as your project begins to take shape. Without this prior approval, you will not benefit from reduced VAT.

Does the Bëllegen Akt apply to new construction in Luxembourg?

Yes, the Bëllegen Akt applies to both the acquisition of an existing property and the construction of a new one. As soon as you sign a notarial deed for the purchase of a plot of land or a new property intended as a principal residence, the tax credit of €40,000 (or €80,000 for a couple) is automatically applied.

What is the maximum VAT saving for a new build?

The maximum saving is capped at €50,000 per housing unit. Regardless of the total cost of your construction, the VAT tax advantage will never exceed €50,000. For a project costing €1,500,000, you would therefore benefit from €50,000 in VAT savings.

What support can be combined for a new build in Luxembourg in 2025?

For a new-build project, it is possible to combine: VAT 3% (savings of up to €50,000), the Bëllegen Akt (€40,000 per person), the home buyers' allowance (up to €10,000), municipal grants (€3,600 to €5,000), and the Klimabonus for sustainable installations (€2,000 to €8,000). The total can exceed €100,000 for a couple with children.

Which systems are covered by the Klimabonus for new buildings?

For new builds, the Klimabonus covers: air/water heat pumps (€3,000 for a single-family home), geothermal heat pumps (€3,000), photovoltaic panels (degressive formula up to €10,000), and domestic batteries (up to €2,250). Please note: from 1 January 2026, support for new solar thermal systems will be discontinued.

Do I have to be living in the property after it has been built to qualify for aid?

Yes, to qualify for the main forms of assistance - reduced VAT, Bëllegen Akt and municipal grants - the property must be your principal residence. You must actually live in it. If you intend to rent it out or leave it vacant, you do not qualify for these grants.

Does Enoprimes apply to new construction in Luxembourg?

No, Enoprimes only applies to the energy renovation of existing buildings. It is not available for new builds. For new buildings incorporating sustainable systems, the Klimabonus applies.

How long does it take to receive new-build grants?

Timescales vary depending on the type of assistance: the Bëllegen Akt is applied immediately on signature of the notarial deed; homebuyer grants take 2 to 4 months; municipal grants take 1 to 3 months; the Klimabonus takes 2 to 6 months, depending on the procedure. Allow at least 6 to 12 months to receive all the grants.

Is a minimum income required to qualify for building grants in Luxembourg?

This depends on the assistance. VAT 3%, Bëllegen Akt and Klimabonus have no income restrictions. The accession premium and interest subsidies depend on household income. No assistance is refused if your income is too high, but some premiums may be reduced depending on your resources.

Grants and subsidies for new construction in Luxembourg 2026

Explore all available financial assistance for your new construction project in Luxembourg in 2026: super-reduced VAT, tax credits, Klimabonus, municipal grants and more. Save up to €50,000 through national and local schemes.

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Super-reduced VAT rate 3% for new construction

The 3% super-reduced VAT rate is one of the most significant subsidies for new construction in Luxembourg. This tax regime allows you to significantly reduce the overall cost of a real estate project.

Eligibility conditions

To benefit from the 3% VAT rate, the following conditions must be met:

The property must be new or under construction
It must be intended to serve as the principal residence of the owner or a third party
The building or part of the building must not have been previously occupied
An approval request must be submitted to the Administration of Registration, Estates and VAT (AEDT) before work begins

Maximum savings amount

The tax benefit ceiling for the 3% super-reduced VAT is limited to €50,000 per residential unit. This means a construction project costing €2,000,000 will receive tax savings up to a maximum of €50,000.

Practical tip

The actual VAT savings corresponds to the difference between 3% VAT and normal VAT (17% or 14% depending on services). With a €50,000 savings ceiling, this represents a minimum total construction investment of approximately €1,500,000 to reach the ceiling.

Services and work covered

Services and supplies related to new construction
Structural and finishing work
Technical installations (heating, electricity, plumbing)
Building materials
Architect and engineering consultant services

Application procedure

Contact the AEDT before starting work
Prepare a comprehensive file with detailed plans and quotations
Obtain official approval from the administration
Communicate this approval to all your service providers
Keep all expense receipts for later validation

Bëllegen Akt tax credit up to €40,000

The tax credit on notarial deeds, commonly called « Bëllegen Akt », is a major fiscal aid for acquiring or building a principal residence in Luxembourg. Since 2024, this credit has been increased and made permanent at €40,000 per person.

Who can benefit?

A natural person acquiring a property for your principal residence
Resident in Luxembourg with registration at the municipal population office, OR
Non-resident but committed to settling in Luxembourg in the acquired property

Tax credit amounts

Single person: €40,000
Married couple or civil partners: €80,000 (€40,000 each)
Cohabiting partners: €40,000 per person (divided according to ownership shares)

Application conditions

The credit is deducted directly from the notary’s invoice (no advance payment required)
No additional administrative procedures are necessary
The notary applies the credit when signing the deed
Valid for acquiring or building a first principal residence

Important

The extension of this aid through June 2026 has been officially confirmed by the government. A bill to make this €40,000 credit permanent is currently under parliamentary discussion.

Klimabonus for sustainable new construction

Klimabonus is a subsidy program designed to encourage the construction of sustainable and environmentally friendly residential buildings in Luxembourg.

Covered systems and installations

Photovoltaic systems: solar panels for electricity production
Heat pumps: innovative and cost-effective heating systems
Hybrid heat pumps: combination of technologies to optimize efficiency
Wood heating systems: wood boilers with particle filters
District heating: connection to shared heat networks

Note

As of January 1, 2026, subsidies for solar thermal systems in new construction are discontinued. Photovoltaic panels (electricity) continue to be supported.

Klimabonus amounts 2026 — New construction

Installation	Single-family home	Multi-unit (per dwelling)
Air-water heat pump	€3,000	€2,000 (max. €10,000)
Geothermal heat pump	€3,000	€2,000 (max. €10,000)
Photovoltaic panels	Degressive formula up to €10,000 max. (from 15 kWp)
Home battery	Degressive formula up to €2,250 max. (from 9 kWh)

✓ Good to know

For existing housing, grants are significantly higher: €10,000 for an air-water heat pump and €12,000 for a geothermal heat pump when replacing a fossil boiler. Source: guichet.public.lu — Klimabonus 2026 regime.

Homeownership acquisition bonus

The homeownership bonus is direct state aid designed to support Luxembourg households who wish to become homeowners by acquiring or building a principal residence.

Homeownership bonus amounts

Single person: €500 to €2,500 depending on income
Couple: up to €5,000
Bonus per child: additional €600 per dependent child
Maximum possible: €10,000 for a household with several children

Other related acquisition aids

Savings bonus: up to €5,000 to finance construction costs
Partial cost aid: partial reimbursement of architect or engineer fees (ceiling €1,250)
Interest subsidy: interest rate reduction up to 3.5% depending on income

Municipal grants for new construction

Beyond national aid, many Luxembourg municipalities offer additional subsidies designed to encourage the construction of principal residences on their territory.

City of Luxembourg: €3,600 minimum, increased by €600 per dependent child
Other municipalities: variable amounts between €1,500 and €5,000 base

Tip

Municipal aid varies significantly depending on your construction location. Inquire with several municipalities if you haven’t yet fixed your location. Some municipalities have more generous amounts, especially for families with children.

Klimaprêt BCEE and sustainable financing

The Klimaprêt is a specialized financing product offered by BCEE (State Bank and Savings Bank / Spuerkeess) designed to support sustainable construction or renovation projects.

Maximum amount: up to €100,000
Loan term: up to 15 years
Reduced interest rate: interest subsidy of 1.5%
Primarily intended for energy renovations of buildings over 10 years old

Important

The Luxembourg government presented the Klimabank an nohaltegt Wunnen package which promotes sustainable construction and renewable energy development in housing. The BCEE Klimaprêt is part of this overall approach.

Combining aids and financing optimization

One of the great strengths of the Luxembourg aid system is the ability to combine several aid mechanisms to finance your new construction project.

Type of aid	Amount	Conditions
Super-reduced VAT 3%	€50,000 (ceiling)	New construction basis
Bëllegen Akt	€40,000 (per person)	Notarial deed signed
Homeownership bonus	€5,000 to €10,000	Based on income and children
Municipal bonus	€3,600 to €5,000	Depends on municipality
Klimabonus	€2,000 to €8,000	Based on sustainable installations
Total possible	€100,600 to €148,000

Expert tip

A single construction project can easily benefit from combined aids exceeding €100,000. Engaging a housing aid specialist can prove very profitable in identifying all applicable aids.

Steps and conditions to obtain aid

Before starting construction

AEDT consultation: request for VAT 3% approval (deadline: before start)
Notary appointment: discuss Bëllegen Akt and legal structure (2-3 months before purchase)
Municipal research: verify specific aid in your municipality
Klimabonus evaluation: identify sustainable systems to install
BCEE financing: explore Klimaprêt as financing (3 months before start)

Important

Do not start work without VAT 3% approval — you will lose the tax advantage! Applications must be made BEFORE spending commitments.

Official resources

Guichet.lu (guichet.public.lu): official state portal
Logement.lu (logement.public.lu): Ministry of Housing
Klima-Agence.lu: information on Klimabonus and sustainable financing
BCEE/Spuerkeess (bcee.lu): Klimaprêt financing products

Frequently asked questions about new construction aid

Can I combine VAT 3% and Bëllegen Akt?

Yes, absolutely. The 3% super-reduced VAT and the Bëllegen Akt tax credit are two completely independent aids that can be combined without restriction.

Does Bëllegen Akt apply to new construction?

Yes, Bëllegen Akt applies to both the acquisition of an existing property AND new construction. As soon as you sign a notarial deed for land or new property intended for principal residence, the tax credit of €40,000 (or €80,000 for a couple) applies automatically.

Does Enoprimes cover new construction?

No, Enoprimes only covers energy renovations of existing buildings. However, you can benefit from Klimabonus for sustainable installations in your new construction.

Is there a minimum income requirement?

It depends on the aid. VAT 3%, Bëllegen Akt and Klimabonus have no income restrictions. The homeownership bonus and interest subsidies depend on household income.