Buying a home off-plan — a vente en l'état futur d'achèvement (VEFA) — has always had tax advantages in Luxembourg. The 2026 housing package adds a significant new one: for a limited period, registration duties can be reduced to the land part only.
How a VEFA purchase is structured
In a VEFA, you buy the land share (or quote-part of the land in a residence) together with the building to be constructed. The price is paid in instalments as the works progress, and ownership of what is built transfers to you step by step.
The notarial deed therefore distinguishes two components:
- the land value (including what has already been built at signing, under the classic rules)
- the construction still to be carried out
Under the classic rules, registration duties were due on the land and on the part already built at the date of the deed, while the construction still to come was subject to VAT instead.
What the 2026 exemption changes
For deeds signed from 16 July 2026 and for three years, if:
- the building is at most 80% complete at the date of the deed, and
- the home is intended as your principal residence,
registration and transcription duties are no longer due on the construction part. They are calculated on the land value only.
A worked example
A couple buys a new apartment in a residence under construction, total price €800,000. The deed allocates €200,000 to the land share.
Without the exemption (if duties applied to land and a built share of, say, €600,000):
- Duties at 7% on €800,000 = €56,000
- Bëllegen Akt for a couple: up to €90,000
- Duties payable: €0, but €56,000 of their lifetime credit is used up
With the exemption:
- Duties at 7% on €200,000 = €14,000
- Bëllegen Akt applied: €14,000
- Duties payable: €0 — and €76,000 of credit remains for a future principal-residence purchase
For a single buyer the difference is even more tangible: on the same apartment, duties of €56,000 would exceed the €45,000 credit and leave €11,000 to pay. With the exemption, the €14,000 due on the land is fully covered.
Combining it with the 3% VAT
For a principal residence, construction work can also benefit from the super-reduced 3% VAT rate instead of 17%, within the legal ceiling on the tax advantage. The developer normally applies it once the approval from the Administration de l'enregistrement has been obtained. Ask your developer early whether the application has been filed.
Together, the three mechanisms — 3% VAT, Bëllegen Akt and the VEFA exemption — make new builds considerably cheaper to acquire than existing homes at the same price.
Checklist before signing
- Construction progress. Ask for written confirmation of the percentage completed at the planned signing date. A project at 85% does not qualify.
- Land/construction split. Ask the notary how the price will be allocated. The land value drives your duties.
- Timing. If a project is close to the 80% mark, a delayed signing can cost you the exemption.
- Principal residence commitment. As with the Bëllegen Akt, you must actually occupy the home. Renting it out can trigger a reclaim.
- Completion guarantee. Check the developer's garantie d'achèvement and the payment schedule.
- Price versus market. A tax saving is only a saving if the price itself is fair.
Does a lower tax bill justify a higher price?
Developers know about the exemption too. Part of the benefit may end up in asking prices. Compare the total cost — price plus duties plus VAT — with comparable resale properties, and look at the expected market value after completion, not just the purchase cost.
An independent valuation before you commit gives you that reference. Request a no-obligation quote.
This article reflects the measures announced in July 2026. Some conditions may be adjusted during the legislative process; confirm the current rules with your notary.