Booster fir de Wunnengsbau: the 7 housing measures for 2026

The Booster fir de Wunnengsbau is the package of seven housing measures presented on 16 July 2026 by Claude Meisch, Minister for Housing and Spatial Planning, and Gilles Roth, Minister of Finance. Its motto — "Méi bauen. Méi erschwénglech. Méi Wunnengen." ("Build more. More affordable. More housing.") — captures the aim: to durably restart construction, support access to home ownership and strengthen the supply of affordable housing. Up to date as of 21 July 2026, based on the press release published on 16/07/2026 and amended on 17/07/2026.

One point deserves to be stated at the outset, because it shapes any serious reading of the scheme: the Bëllegen Akt tax credit rises from €40,000 to €45,000 per individual. Several guides still online show the figure of €40,000 — that has been inaccurate since 16 July 2026. This amount underpins the effect quantified by the government itself: the ability to acquire a property of roughly €640,000 without paying any registration duty.

Two measures apply already (the VEFA exemption and the Bëllegen Akt at €45,000), with the possibility of retroactivity through the Administration de l'enregistrement, des domaines et de la TVA (AED). Of the other five, Measures 3 (8% VAT) and 4 (depreciation) await the vote and entry into force of the law; the Housing Bond (Measure 5) is set to launch in early 2027; and the enhanced aids (Measure 6) and the State VEFA envelope (Measure 7) follow their own timing rather than a law vote. We draw this legal line throughout the article: it is what separates a promise from an enforceable rule.

In brief: the 7 measures of the Booster fir de Wunnengsbau

• Measure 1 — VEFA duty exemption: for an individual buying a home off-plan at most 80% complete, the duties (6% + 1% = 7%) are payable only on the land. In force since 16/07/2026, three-year window.
• Measure 2 — Bëllegen Akt at €45,000: notarial-deed tax credit raised from €40,000 to €45,000 per person, for a personal home. Already applicable.
• Measure 3 — 8% VAT for socially oriented rental housing, subject to five cumulative criteria. From the entry into force of the law, with no retroactivity.
• Measure 4 — "three times 6" depreciation: 6%/year for 6 years if the base is ≤ €600,000 per building. Optional in 2026, mandatory regime from 01/01/2027.
• Measure 5 — Housing Bond: a citizens' bond of €250 million, with interest exempt from the 20% withholding tax. Launch in early 2027.
• Measure 6 — Enhanced housing aids: interest subsidy for young buyers raised to €300,000, individual aids increased, acquisition grant broadened.
• Measure 7 — State VEFA: an additional €300 million, partial acquisition as an "anchor reservation", regionalised Maximum Eligible Amount across 6 categories of municipalities.

1. Registration-duty exemption on VEFA purchases

An individual who acquires a residential home off-plan (VEFA, vente en l'état futur d'achèvement), where construction is at most 80% complete at the time of acquisition, pays registration and transcription duties only on the value of the land, not on the build. The measure covers both owner-occupation and letting, and applies to VEFA acquisitions from 16/07/2026, for a period of 3 years. A deed concluded between the announcement and the law's entry into force can request the exemption from the AED.

The scale is significant. Take a home bought for €600,000, with an illustrative split of 30% land / 70% build, i.e. €180,000 of land. Under the normal regime, the 7% duties apply to the whole: €42,000. With Measure 1, they apply only to the land: 7% of €180,000 = €12,600. The saving comes to €29,400. The actual land share varies by project and location; only the "duties on the land alone" rule and the 7% rate come from the press release.

The agency's view — The 80% completion threshold is checked in the deed: that is the practical friction point. A property that is too far along falls outside the scheme. We advise having the state of completion recorded at signing, and cross-checking this with our property taxation guide.

The essentials: completion ≤ 80%, duties (7%) on the land alone, three-year window, immediate application.

2. The Bëllegen Akt raised to €45,000

The tax credit for notarial deeds, the Bëllegen Akt, which applies to an acquisition for personal-housing purposes, rises from €40,000 to €45,000 per individual. The mechanism absorbs the acquisition duties (6% registration + 1% transcription = 7%) up to the amount of the credit.

The maths is straightforward. For a single person, we look for the price P such that 7% x P = €45,000, i.e. P = €642,857, rounded to ~€640,000 (check: 7% of €640,000 = €44,800, absorbed by the credit). For a couple, two individuals combine €90,000 of credit: P = €90,000 / 0.07 = €1,285,714, i.e. ~€1,280,000 (7% of €1,280,000 = €89,600). That €45,000 / €640,000 pairing is the true marker of how current the scheme is. The measure has applied since 16/07/2026, with retroactivity possible on request to the AED.

The essentials: €40,000 → €45,000/person; ~€640,000 (single) or ~€1,280,000 (couple) free of duty; retroactivity via the AED.

3. 8% VAT for socially oriented rental housing

A reduced VAT rate of 8% will apply to socially oriented rental housing, subject to five cumulative conditions:

• floor area ≤ 120 m²;
• sale price per m² ≤ the regional median price published by the Observatoire de l'habitat;
• rental yield capped at 4% of net capital invested;
• let for at least 10 years;
• tenant certified eligible by the Ministry of Housing.

"For the first time, housing tax measures are conditioned on social criteria. They will encourage the creation of more rental housing at affordable rents." — Claude Meisch

A credibility point: this measure comes into force when the law enters into force, with no retroactivity. It is therefore not yet enforceable as of 21/07/2026.

The essentials: 8% VAT, five strict cumulative criteria, no retroactivity, dependent on the vote.

4. "Three times 6" accelerated depreciation

For buy-to-let investment, the new regime allows depreciation of 6% per year for 6 years where the depreciable base is ≤ €600,000 per building. Above that threshold, the rate is 2% on the whole, with no time limit. In 2026, the investor chooses between the old and the new regime; from 01/01/2027, the new regime becomes mandatory for new acquisitions, with the old regimes remaining applicable until they run their course.

The agency's view — The 2026 choice is not neutral: depending on the amount and the holding horizon, the old regime may remain preferable until the switch. It is a trade-off to be modelled with a tax adviser, ahead of the deed. See also our approach to financing your purchase.

The essentials: 6%/6 years if the base is ≤ €600,000; 2% above; optional in 2026, mandatory from 01/01/2027.

5. The Housing Bond: €250 million

The Housing Bond is a citizens' bond of €250 million intended to finance affordable housing, in the tradition of the earlier Defence Bond. Interest will be exempt from the 20% final withholding tax. Launch is planned for early 2027. It is an entry point for the citizen-investor seeking a targeted, tax-advantaged investment.

The essentials: €250m, interest exempt from the 20% tax, launch in early 2027.

6. Enhanced support for first-time buyers and housing aids

Three strands, combinable with the rest of the package.

6.1 Interest subsidy for young first-time buyers

If at least one holder of the loan is 35 or under, the ceiling of the loan eligible for the interest subsidy rises from €200,000 to €300,000 (+100,000). That is €100,000 of additional borrowed capital opening entitlement to the subsidy — not the subsidy itself, which depends on income and household composition.

6.2 Individual housing aids (all households)

The ceiling of the subsidisable loan rises from €200,000 to €250,000 (+50,000), the increase per dependent child from €20,000 to €30,000 (+10,000), with a maximum combined ceiling of €370,000. Beneficiaries: new applicants and beneficiaries currently receiving payments.

6.3 Broadened acquisition grant

The acquisition grant becomes available to young buyers of affordable or moderate-cost homes (previously reserved for the private market), provided at least one future owner is 35 or under at the deed. It opens access to the home-ownership acquisition grant and the savings premium.

The essentials: interest subsidy €200,000 → €300,000; aids €200,000 → €250,000; €20,000 → €30,000/child (+10,000); ceiling €370,000; grant broadened if one buyer is ≤ 35.

7. State VEFA and regionalised Maximum Eligible Amount

The State continues its VEFA acquisition programme with an additional €300 million. The previous record: €480 million invested, 830 homes acquired or reserved. The method is evolving: the State now buys a portion of the homes as soon as they go on the market, creating an "anchor reservation" that secures sales, unlocks developer financing and the start of works. A structuring novelty: a regionalised Maximum Eligible Amount (MME), with municipalities split into 6 categories to tailor acquisition ceilings to local realities. Those who follow prices per m² by municipality will see the direct link with this regionalisation.

The essentials: +€300m, anchor reservation, MME across 6 categories of municipalities.

What it changes in practice: our reading

For the buyer of a main residence, the effect is immediate and cumulative: Bëllegen Akt at €45,000 and, for new builds, exemption from duties on the build in a VEFA. New stock still under construction becomes markedly more competitive against existing homes. For the first-time buyer aged 35 or under, the stacking of the €300,000 interest subsidy, higher individual aids and a broadened acquisition grant would shift the entry threshold — but the press release confirms only Measures 1 and 2 as in force since 16/07/2026 and does not date these Measure 6 aids, whose effective date remains to be confirmed by the implementing texts. For the buy-to-let investor, the "three times 6" depreciation and 8% VAT change a project's economics — but one awaits the 2026/2027 choice and the other the vote on the law.

Our reading — The real advantage is not an isolated figure, it is the timing: what is already secured (VEFA, Bëllegen Akt at €45,000) can be signed right now; what awaits the law (8% VAT, depreciation) can be prepared, but not promised.

A word of caution: do not confuse an announcement with positive law. The 8% VAT, the depreciation and the Housing Bond are not yet enforceable. Before any signing, we recommend validating each assumption with a notary or tax adviser.

"Housing is citizens' foremost concern. [...] With this Booster fir de Wunnengsbau, we are implementing a coherent set of measures." — Gilles Roth

When each measure applies

• Already in force (16/07/2026): Measure 1 (VEFA exemption) and Measure 2 (Bëllegen Akt at €45,000); retroactivity possible via the AED.
• Measure 1: three-year window from 16/07/2026.
• On the law's entry into force, no retroactivity: Measure 3 (8% VAT).
• 2026: Measure 4, choice between the old and new regime.
• 01/01/2027: Measure 4, new regime mandatory for new acquisitions.
• Early 2027: Measure 5 (Housing Bond).
• Measure 6 (housing aids): the press release sets no precise entry-into-force date.
• Measure 7 (State VEFA, +€300M): an investment programme, with no law-vote date.

How EIRES supports you

This article is informative: the amounts and rules come from the government press release and will need to be confirmed by the texts published on Legilux, guichet.lu and logement.public.lu. Every situation — main residence, first purchase, buy-to-let investment — calls for its own calculation.

At EIRES Real Estate, the starting point is a conversation, not a form. Whether you are preparing a new-build purchase, weighing the impact of the Bëllegen Akt at €45,000 on your budget, or comparing existing stock with a VEFA, we lay out the figures with you. To go further: properties for sale, financing your purchase or a confidential valuation.