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When to apply

📐 Article4 min read

What you will learn Who makes the application and when, what must be told to the notary beforehand, the off-plan case, and what remains possible after the deed.

The tax credit is not claimed from the administration by the purchaser. It is claimed by the notary, at the time of the deed, which shifts the burden of anticipation entirely.

Who makes the application and when

It is the notary who makes the application at the time of the deed.

The purchaser gives the undertakings relating to occupation, covered in the article on the occupation condition.

The credit is set off at the time of the deed, against the duties then owed.

Direct consequence: the useful moment to act is before the deed, not after. Once the deed is executed without the application, the position becomes considerably more difficult.

Step Who acts Timing
Informing the notary The purchaser Before the deed is prepared
Claiming the benefit The notary At execution of the deed
Off-plan purchase Two schemes share the transaction Land and construction separately

What must be told to the notary beforehand

Four items, to communicate before the deed is prepared. They allow the notary to claim the benefit.

The intention to occupy the property personally, a condition of the benefit.

That each purchaser is an individual, and how many there are, the credit being granted per purchaser.

The existence of a partly used credit from an earlier purchase, the scheme working as a personal counter.

The nature of the property acquired, existing dwelling, building plot or property under construction, which determines the applicable occupation limit.

The third point is the most often omitted, a purchaser not always knowing they hold a usable balance.

The off-plan case

An interaction worth knowing, since two schemes share the transaction. One bears on the land, the other on the construction.

On an off-plan purchase, the tax credit bears on the duties relating to the land share.

The share corresponding to the construction falls under another regime, that of value added tax applying to housing, covered in the article on the 3 per cent housing VAT.

Two distinct steps therefore coexist on the same transaction, with two counterparts and two timetables.

Missing both is possible, and that is what happens when the purchaser assumes one step covers everything.

What remains possible after the deed

An important qualification, but one that should not reassure. Retrospective correction remains exceptional and is never guaranteed.

Procedures for direct repayment to the purchaser have been provided in certain situations, notably where an additional credit fell to be granted following a legislative amendment applying retroactively.

These procedures address particular cases and do not constitute a general route for making good an oversight.

The rule therefore remains prior application, in line with the principle set out in the article on why everything is applied for first.

Any particular situation falls to the notary or the administration, not to a personal assessment.

What this means for a professional

Four rules.

Remind the client to inform their notary of their intention to occupy, before the deed is prepared.

Flag the existence of a credit balance where the client has already purchased a property.

Distinguish the two schemes on an off-plan purchase, one bearing on the land and the other on the construction.

Do not present the repayment procedures as an ordinary recovery route, they address specific situations.

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

Before the deed is prepared, by informing the notary of the situation. The notary makes the application at execution.

Four items: the intended use of the property, the household composition, earlier purchases and the timetable for occupation. They are given before the deed is drafted.

Two schemes share the transaction, one bearing on the land and the other on the construction. That interaction should be understood before signing.

Retrospective correction remains exceptional and is never guaranteed. That qualification should not reassure.

Housing VAT and support in Luxembourg