FAQ

The provision relating to the super-reduced rate reduces the scope of application to the level of the type of building that will be equipped with solar panels, namely “on private housing, housing and building, public and others, used for activities of general interest, and in close proximity to these”.

As far as “private housing” is concerned, this is housing of which at least three quarters of the total surface area is reserved for living purposes. The same rule applies to housing and public buildings and others used for activities of general interest: at least three quarters of the total surface area must be reserved for these purposes.

A definition of this is provided in the grand-ducal regulation of 23 December 2022 amending: 1° the grand-ducal regulation amended on 21 December 1991 determining the limits and application conditions of the reduced, super-reduced and intermediate rates of value added tax; 2° […], and the following explication is provided by bulletin No 816 issued by the Registration Duties, Estates and VAT Authority: “private housing and buildings used by public authorities not subject to tax for activities carried out as such or used by those subject to tax for activities of general interest exempt from VAT without the right to deduct input tax (notably hospitals, schools, children’s nurseries, youth hostels and retirement homes)”. The provision of cultural services is added to the latest list.

The delivery and installation of photovoltaic solar panels close to housing or buildings referred to above does not interfere with the application for the super-reduced VAT rate of 3 % as long as the delivery and installation takes place on adjoining or separate properties but located close to private housing or housing and buildings, public and others, used for activities of general interest and as long as such photovoltaic solar panels are connected to the thermal and/or electrical network of the housing or buildings in question.

The grand-ducal regulation of 23 December 2022 amending: 1° the grand-ducal regulation amended on 21 December 1991 determining the limits and application conditions of the reduced, super-reduced and intermediate rates of value added tax; 2° […] defines in the context of the reduction of the VAT rate the “delivery and installation of solar panels” as follows: “work on a property consisting of the delivery of solar panels and their installation”.

As a result, all the parts necessary for this installation and its operation also come under the super-reduced rate, which implies the following parts of the photovoltaic solar panels: photovoltaic panels (or hybrid solar collectors), fixing rails, DC and AC electric cabling connected directly to the photovoltaic installation, inverter, electrical protection devices, bidirectional meter; and for the thermal solar panels: thermal solar collectors, fixing rails, insulated pipework, solar storage reservoir, calorimeter, peripheral equipment (power feed, regulation, heat exchangers); as well as, of course, the costs of installation.

For the photovoltaic solar panels, a storage installation (battery) is therefore not involved.

It is also important to note that the super-reduced rate only applies to such installation work on a solar power plant. Bulletin No 816 issued by the Registration Duties, Estates and VAT Authority defines this notion of “work on a property” as follows: “Therefore, there is reason for understanding this new provision not as the delivery of solar panels or the installation of such panels carried out separately, but as work on a property that consists of a delivery of solar panels with installation”.

Applications for obtaining financial aid must be submitted no later than 12 months after the last invoice was issued in connection with the investment.

As is the case for buildings along the municipal public domain, buildings along the State road (national road and State-managed road) must, within the framework of the building permit application procedure, comply with the municipal urban planning regulations on setbacks.

For constructions located in the vicinity of the State public domain at a distance of 25 metres from a national road (N) or at a distance of 10 metres from a State-managed road (CR), established from the property line, a road permit is required from the Minister of Sustainable Development and Infrastructure. As part of a road permit, provisions regarding the setbacks of buildings in relation to the road will be applied. These may differ from the setbacks set by the municipalities.

Since 1 January 2017, every new construction of a residential building in Luxembourg must be a Nearly Zero Energy Building (NZEB) in terms of energy consumption. As a rule, the NZEB corresponds to the AAA energy classes. However, certain conditions relating to the construction location may cause variations in these energy classes.

Architects and consulting engineers, whose profession is defined by the law of 13 December 1989 organising the professions of architect and consulting engineer, as well as all experts approved by the Ministry of the Economy, can issue energy performance certificates

• Demolition: sale of a ruin or a building that does not have a heating installation and which will be demolished after purchase.
• Inheritance or gift.

• New building: any building that is subject to a building permit application. (A feasibility study concerning the use of renewable energies should be appended to the building permit application.)
• Extension of an existing building.
• Modification of an existing building (building permit required), if the surface area of the modified element of the thermal envelope exceeds the surface area of the same existing element (walls, windows, roof, etc.) by 10% and if the modification has an impact on the energy performance of the building. (Issuance of an energy performance certificate for the new planned situation.)
• Substantial alterations to an existing building (without a building permit), if the surface area of the altered element of the thermal envelope exceeds the surface area of the same existing element (walls, windows, roof, etc.) by 10% and if the alteration has an impact on the energy performance of the building. (Issuance of an energy performance certificate for the new planned situation.)
• Change of owner or tenant.
• Demolition: sale of a building that will be demolished after purchase, if the building has a heating installation, exterior walls and a roof.
• Modification of technical facilities, if the modifications of these technical facilities exceed €1,500 (for a single-family house) or €3,000 (for a multi-family house).

The energy performance certificate is a regulatory obligation, therefore no subsidy is provided for its establishment.
The energy performance certificate is issued according to precise rules set out in the amended Grand Ducal Regulation of 30 November 2007 on the energy performance of residential buildings. It is valid for 10 years from the day of its issue. The issuance of an energy performance certificate and the information it contains shall not result in any direct obligation for energy retrofitting.