You've heard all about a new district in the southwest of Luxembourg and you'd like to buy an apartment there, but ouch! The budget's a bit tight. Thanks to available grants, your dream of owning your own home in Belval may soon be a reality.
Home ownership in Belval: what kind of government assistance is available?
Just 20 minutes south of Luxembourg City, there's still plenty of luxury housing available, and your financial situation may be more favorable than you think.
State subsidies are means-tested and calculated according to household composition. However, good news for those who were unable to benefit from previous, less advantageous measures: the ceilings have been raised. They can be consulted on the Chambre immobilière website.
The following three subsidies apply to mortgage loans taken out with an approved bank. The Prime d'Accession à la Propriété and the Garantie de l'État are reserved for first-time buyers.
Home ownership bonus
The amount ranges from €500 to €10,000, and can be increased for the purchase of a semi-detached home (-15%), a condominium or a townhouse (-40%). What's more, if you've built up capital, you can get a savings bonus of up to €5,000.
State guarantee
Your bank will ask you for guarantees before granting you a mortgage. The State can guarantee your loan up to €294,824 (value as at January1, 2024).
Interest subsidy
Its rate varies between 0.25% and 3.5%, and it can reach up to €200,000 (+ €20,000/dependent child up to a maximum of €280,000).
Before applying for the home-ownership bonus, interest subsidy and state guarantee, check your eligibility, the conditions to be met and the steps to be taken on the official website for public aid in Luxembourg.
What are the tax incentives for investing in the Belval district?
When you buy your principal residence, you will benefit from a 50% reduction in registration fees, in addition to :
- The "Bëllegen Akt" tax credit, i.e. €40,000 per person, €80,000 for a couple;
- Deductible interest on your home loan, up to €4,000/person for the first 5 years of occupancy;
- Super-reduced VAT at 3% up to €50,000.
In the case of a rental investment, you won't be entitled to super-reduced VAT. However, you will benefit from a specific Bëllegen Akt tax credit of €20,000/person, as well as :
- Accelerated depreciation at 6% over 6 years, with a tax ceiling of €250,000.
- Reduction of the capital gains tax rate to ¼ of the overall rate if you sell an old rental property for a new apartment in Belval.
Don't wait any longer to choose your Belval apartment!
All in all, you'd love to take a look at our available properties, and you're probably still asking a lot of questions: schools, transport, sports and leisure facilities... To find out more about the IDESYA residence and its surroundings, please contact us!