Buying off-plan (VEFA) in Luxembourg: the complete 2026 guide

Buying off-plan (VEFA) in Luxembourg — vente en l'état futur d'achèvement — means acquiring a new-build home "off the plan", before construction is finished, becoming the owner progressively as the works advance. It is a common route into new-build property in the Grand Duchy, and it follows precise, buyer-protective rules rooted in Luxembourg law: the Code civil (articles 1792 and 2270), the Consumer Code, and AED doctrine on tax matters.

This deserves stating up front, because a great deal of French-language content blurs the French and the Luxembourg regimes. This guide deals exclusively with the Grand Duchy's framework. The mechanisms, thresholds and figures cited all point to official Luxembourg sources (guichet.public.lu, the AED's indirect-taxation portal, Legilux, the Observatoire de l'habitat).

Finally, 2026 changes the picture. The Booster fir de Wunnengsbau package, in force since 16 July 2026 and for three years, makes new-build more competitive: subject to conditions, registration duties now apply to the land alone. Combined with the Bëllegen Akt rising to €45,000 per person and the 3% housing VAT, buying off-plan regains genuine tax appeal. We detail each measure below.

What VEFA actually means

Under VEFA, the seller transfers to you immediately their rights over the land and ownership of any constructions already in place. You then become the owner progressively, as the works advance — the foundations, then the walls, then the roof become yours step by step as they rise.

The counterpart to this progressive transfer is payment in instalments, tied to the real progress of the site. You do not settle the whole price at signing: you make staged drawdowns through to delivery. This mechanism, framed by law, limits your exposure while funding the developer at the pace of what they actually build.

The VEFA contract: notarial deed and mandatory particulars

A VEFA sale contract can be concluded only after the building permits have been issued, and solely by notarial deed. This formality is not decorative: several particulars are required on pain of nullity.

The contract must state: the identity of the owner of the land and the constructions; the date the administrative authorisations were issued and their conditions; the description of the building and the agreed degree of completion; the price and its payment terms; the delivery deadline; and, for VEFA, the guarantee of full completion of the building.

The following must also be annexed, likewise on pain of nullity: the plans (elevations, floor levels, cross-section); the descriptive specification setting out the technical characteristics and the materials; and the co-ownership regulations where they apply.

A key point: nullity of the contract may be invoked only by the buyer, and only before the works are completed. The scheme is thus designed as a shield for the buyer's benefit, not a loophole the seller can exploit.

The reservation contract and the deposit

Ahead of the sale, a reservation contract (preliminary, optional) may be signed: in return for a deposit, the seller reserves the property for you. This deposit is capped at 2% of the provisional price.

The deposit is returned to you if the seller does not conclude the definitive contract within the agreed period, or if the contract on offer shows a material difference from what was forecast — in particular a final price more than 5% higher, or announced fittings that are not provided. You are never obliged to buy; but if you withdraw without cause, the deposit stays with the seller as compensation.

Paying at the pace of the site: the drawdowns

The price is settled in instalments, according to the progress of the works. Purely by way of illustration — and not as a fixed statutory scale — a project's milestones follow a logic of this kind: signing and land, foundations, weathertight stage (roof), airtight stage (windows), then completion and delivery. The exact breakdown is set out in your contract.

The question of a revisable price warrants attention. If the index rises, the developer may apply +2.5% to all the payment instalments. The contract must state whether the price is revisable and on what terms. Should the clause lead to a final price markedly higher than expected, you have a right to terminate.

The financial completion guarantee (GFA): your safety net

This is the central mechanism of VEFA. The contract must compulsorily contain the guarantee of full completion of the building. It is provided by a guarantor — an insurer or a financial institution standing surety.

In practice: if the developer defaults or goes bankrupt, the guarantor ensures the continuation and completion of the works. You are not left with a halted site and an uninhabitable home. And where it is established that the construction cannot be carried out, materially or legally, the GFA converts into a refund guarantee for the sums paid.

The agency's view — do not settle for the words "completion guarantee" in the draft deed. We systematically read the guarantor's identity and the exact nature of the guarantee: effective completion cover, ceiling, triggering conditions. It is the first safety reflex of a VEFA purchase, and the notary is there to check it with you.

Handover and statutory guarantees: minor works and decennial

The building is deemed complete when the works essential to its use have been carried out and the essential equipment installed. Completion is recorded by the parties, by notarial deed, or by a qualified person. At handover, a retention of 5% of the net price is customary in Luxembourg: it is released once the snagging reservations are cleared. This clearing of reservations — the making-good, in the year following handover, of the defects noted — is a matter of contractual practice tied to the 5% retention, not a statutory guarantee.

From handover, two statutory guarantees run (Code civil, art. 1792 and 2270):

• Two-year guarantee for minor works (menus ouvrages): hidden defects affecting the minor works.
• Ten-year decennial guarantee (major works / gros ouvrages): hidden defects that compromise the soundness of the works or render them unfit for their intended purpose. It is a matter of public policy (ordre public): the parties may neither exclude nor reduce it by agreement.

These guarantees pass to successive owners as an accessory to the property: if you resell before they expire, the buyer benefits from them.

VEFA taxation in 2026

Acquisition duties normally amount to 7%: 6% registration plus 1% transcription, levied on the land and the construction.

The 2026 novelty comes from the Booster fir de Wunnengsbau package, in force since 16 July 2026 and for three years. For the purchase of a VEFA home completed to no more than 80% at the time of acquisition, the duties are exempt on the construction: they remain due on the land alone. The scheme is open to the individual, whether to occupy or to let. We set out the Booster measures in our dedicated analysis: The "Booster fir de Wunnengsbau" package (7 housing measures 2026).

Worked figures: on a total price of €700,000, standard duties at 7% come to €49,000. Assuming — an illustrative hypothesis — a land share of 25% (€175,000), the Booster duties fall to 7% × €175,000 = €12,250, a €36,750 saving. The actual land/construction split appears in the deed and varies from one project to another.

To this is added the Bëllegen Akt, the tax credit for notarial deeds raised to €45,000 per individual for personal housing. It absorbs the acquisition duties up to the amount of the credit: roughly €640,000 of acquisition free of duties for a single person (7% × €640,000 = €44,800, fully covered by the €45,000).

On VAT, housing intended as a main residence benefits from the super-reduced rate of 3% (instead of 17%). Prior AED approval is compulsory, before any works begin or the deed is signed; with VEFA, the developer then invoices 3% directly on the housing share. The tax break is capped at €50,000 of VAT per home over its lifetime, and the 3% rate applies only to floor area not exceeding 400 m² (above that, 17%). An energy performance certificate (CPE) is compulsory.

Take care not to confuse them — the 3% VAT (main residence, an existing scheme) has nothing to do with the Booster's new 8% VAT, which is reserved for social-purpose rental under conditions. These are two distinct regimes. Our property taxation guide covers the whole picture in detail.

VEFA or existing stock: our reading

Existing stock offers an established location and no wait: you move in at signing. But new-build under VEFA now lines up several tangible advantages: energy performance and controlled charges, decennial and biennial guarantees, the option to personalise during construction, and — new in 2026 — taxation that has become competitive again thanks to the Booster, the Bëllegen Akt and the 3% VAT.

The points to watch are the flip side of "off-plan": a delivery lead time to bear, a property judged first on plans and a specification, and a reliance on the developer's soundness. This is precisely what the GFA and the notarial formalism are there to secure.

The points to watch before signing

• The developer's solvency and the actual presence of the GFA in the deed, with the guarantor's identity.
• Conformity with the annexed plans and descriptive specification: these are what govern.
• Price-revision clause: presence, terms, and the potential impact of the +2.5% on the index.
• Late-delivery penalties and a firm delivery deadline.
• 3% VAT approval applied for to the AED before any works begin or signing.
• The 5% retention and the conditions for clearing the reservations.

Each of these statements deserves checking with your notary before signing: this guide informs, it does not replace advice on your specific file.

How EIRES supports you

We support VEFA purchases from end to end: selecting new-build schemes, reading the draft deed and the specification, checking the GFA and the price clauses, connecting you with the notary, and framing the tax position (Booster, Bëllegen Akt, VAT approval). We also help you finance your purchase and situate the property within the market.

The starting point is a conversation, not a form. Whether you are a first-time buyer, seeking your main residence in new-build or an investor, let's talk about your project. You can browse our properties for sale or request a confidential valuation if a sale precedes your purchase.