The “Bëllegen Akt” is a fundamental tax incentive for property purchases in Luxembourg, designed to reduce registration and transcription fees when acquiring real estate for use as a main residence. Currently, thanks to an exceptional measure extended by the Frieden government until 30 June 2025, the maximum tax credit has been increased to €40,000 per buyer, enabling property purchasers to achieve substantial savings on incidental expenses.
What is the Bëllegen Akt?
The Bëllegen Akt is a tax credit that reduces registration fees (6%) and transcription fees (1%) – the taxes payable when purchasing a house, apartment, or building plot for personal use. Without this assistance, purchasing a property worth €1 million would incur €70,000 (€1,000,000 × 0.07) in notarial fees alone. With the €40,000 tax credit, only €30,000 needs to be paid, resulting in considerable savings.
The Registration Duties, Estates and VAT Authority (AED) collects a minimum amount of €100 in registration fees.
Practical implementation
- At notarial deed signing, the notary directly incorporates the tax credit application on behalf of the buyer
- Personal nature of the credit: each buyer can receive up to €40,000 credit, provided they commit to personally and effectively occupying the property for at least 2 consecutive years (or 4 years for building plots or properties under construction)
- Unused balance carryover: if fees payable are less than €40,000, the remaining balance can be used for future acquisitions
- Reimbursement for non-compliance: selling or renting the property before the 2-year period expires triggers credit repayment
Eligibility requirements
- Natural persons resident in Luxembourg or committed to relocating there
- European Economic Area residents committed to occupying the property as their main residence
- No income or property value conditions, provided the property is intended as a main residence
Concrete manifestations of the benefit
- Immediate reduction of the amount payable at the notary
- Explicit mention of the credit amount in the notarial deed
- Direct savings: no cash advance required for the portion covered by the credit
- Remaining balance consultation available via the MyGuichet.lu platform
- Repayment required if entitlement is lost (early sale, for example)
Reference sources:
- Official Guichet.lu portal (Bëllegen Akt procedures)
- Luxembourg Chamber of Deputies (reference legislation)
- Indirect Taxation Portal (implementation details and reduced VAT)
In summary: for purchasing a property worth €1 million before 30 June 2025, the Bëllegen Akt enables savings of up to €40,000 on notarial fees. For new dwellings, 3% VAT benefits add to these savings. These measures are designed to facilitate property ownership and apply directly during the notarial deed, without complex procedures.
