Blog

The tax credit on duties

📐 Topic5 min read

What you will learn The principle and its base, why no amount is published here, the little-known counter mechanism, and the conditions attaching to it.

This is the most claimed scheme on a purchase. It takes the form of a relief against the duties owed at the time of the deed, and it carries commitments that long outlive the signature.

The principle

A relief, called a tax credit, is set against the registration and transcription duties normally owed on the purchase for consideration of a property intended for personal occupation.

It is granted per purchaser. A joint purchase therefore allows each to claim their own.

It is open to individuals, resident and non-resident alike, provided the property is to become their main residence.

A minimum duty of one hundred euros is charged in all cases for registration and transcription. The credit therefore never brings the cost to absolute zero.

The base of the duties themselves is covered in the guide on construction costs, which notably recalls that for a build the duties apply to the land alone.

Element What it sets Point to watch
Beneficiary Granted per purchaser Doubles for a joint purchase
Condition Personal occupation of the dwelling Main residence required
Application Made by the notary at the deed The situation is flagged beforehand

Why no amount is published here

An editorial choice worth explaining.

The ceiling of the tax credit has been amended several times. The scheme derives from a law of 2002, amended successively in 2008, in 2012, in 2023 and in 2024, that last amendment introducing an increase presented as temporary.

A further change was announced in July 2026, as part of a package of housing measures whose status must be checked.

Direct consequence: the amounts circulating online differ according to the date the source was written, with nothing signalling to the reader which is current.

Publishing an amount would therefore mean publishing information whose obsolescence is likely and invisible. The amount applicable to a given purchase must be obtained from the notary or the competent administration.

The counter mechanism

A little-known and very useful point.

The credit is not necessarily used up in one go.

Where the duties owed on a purchase do not reach the total amount of the credit, the balance may be used progressively, on other purchases, until exhausted.

The credit therefore works as a personal counter, attached to the purchaser and not to the property.

This is the exact opposite of the ceiling on the value added tax benefit, which follows the dwelling, as the article on the ceiling and its exhaustion explains.

This difference of logic between two neighbouring schemes is a classic source of confusion.

The conditions attaching to it

Three requirements, developed in the articles of this branch. They concern occupation, timing and duration.

Actual and personal occupation of the property, covered in the article on the occupation condition.

The application made at the right moment, covered in the article on when to apply.

Observing the commitments over time, failing which the benefit is clawed back, covered in the article on what forfeits the benefit.

These conditions are not formal. Failure to observe them entails repayment of the relief.

What the scheme does not cover

Three clear exclusions.

Buy-to-let investment, the property having to be personally occupied.

A second home, which is not a main residence.

Purchase by a company, the benefit being reserved to individuals.

The articles in this branch

The article on the occupation condition covers the time limits and the duration required. Its reach is set out there.

The article on when to apply covers the notary's role. The timetable is detailed there.

The article on what forfeits the benefit covers the situations at risk. The repayment cases are listed there.

This article reflects the state of the schemes at the date of checking and serves professional orientation. It does not replace tax advice or consultation of a notary.

Frequently asked questions

A scheme reducing the duties owed on buying a dwelling intended as a main residence. It is granted per purchaser, which doubles it for a joint purchase.

Personal occupation of the dwelling as a main residence. A buy-to-let investment or a second home does not qualify.

The notary, at execution of the deed, which assumes the situation was flagged beforehand. The purchaser must therefore inform the notary in advance.

Because the ceiling has been raised by legislation and its reach over time has changed. It is checked with a notary or the administration before the deed.

Explore the articles in this guide

Housing VAT and support in Luxembourg