Finance
Housing finance
Luxembourg's 3% Super-Reduced VAT for Building or Renovating a Main Residence, Explained
Luxembourg's "TVA logement" scheme cuts VAT to a super-reduced 3% (instead of the 17% standard rate) on building or renovating a dwelling used as a principal residence. The benefit is capped at €50,000 of VAT per dwelling. Claim it by direct application (the contractor invoices at 3% after AED approval) or by reimbursement of the difference afterwards via the AED. The home must be a main residence for at least two years. Separate from the Bëllegen Akt purchase credit.
