Luxembourg has unveiled seven measures to restart residential construction, including €300 million for state purchases, higher buyer support and new tax incentives. Most elements still require legislation and will be monitored for price effects.
Buying a home in Luxembourg follows a clear path: a bank pre-approval, a signed offer, a binding compromis de vente, then the notarial deed (acte notarié) that transfers ownership. On top of the price, expect registration and transcription duties of roughly 7% plus a notary fee of around 1%. The Bëllegen Akt tax credit of up to EUR 40,000 per buyer and the 3% VAT on building cut those costs. There are no restrictions on foreigners buying.
Luxembourg's flagship registration-duty credit for primary-residence buyers remains in force in 2026, after the broader package of housing-crisis tax reliefs ended in mid-2025.