The government offers grants for housing as well as a set of financial measures aimed at encouraging energy renovations and the sustainable construction of housing, promoting heating systems using renewable energies, encouraging investment in photovoltaic systems and incentivising the purchase of electric vehicles and the installation of charging stations.
Alongside the government, municipalities and energy suppliers provide additional support to ensure the success of your projects.
Subsidies for housing and taxation
The Service des Aides au Logement has an Info'Logement office in Luxembourg City. Info’Logement provides individuals with useful information and advice on the various available housing aids, the construction and acquisition of a home (with or without alterations), the improvement, renovation and retrofitting of their current home, particularly with regard to ecological and energy-efficient construction and other technical matters (insulation, safety, health).
Information on legislative and tax issues (VAT on housing, “Bëllegen Akt”) as well as on tenancy legislation (lease for residential use) is also available.
New tax measures - Housing subsidies
Adjustment of the accelerated depreciation rate for rental properties
The accelerated depreciation rate for new buildings acquired after January 1, 2021 and used as rental properties is reduced from 6% to 5%, and the period of application of this rate is reduced by one year, from 6 to 5 years.
The 5% rate will apply to landlords whose sum of depreciable bases of buildings does not exceed one million euros. Depreciable bases exceeding one million euros will be depreciated at the rate of 4%.
Introduction of a 6% depreciation rate for energy renovations for rental properties
In order to encourage owners of rented accommodation to carry out energy renovation measures, a depreciation rate of 6% is granted for 10 years for renovation investment expenses leveraged by Klimabonus subsidies granted by the Environment Agency.
Application of the super-reduced VAT rate of 3% on housing renovations for buildings older than 10 years
In the context of encouraging homeowners to carry out sustainable energy renovation measures, the minimum age of the building required for the application of the super-reduced VAT rate of 3% is reduced from 20 to 10 years.
Klimabonus: state subsidies the promotion of sustainability, rational use of energy and renewable energies in the housing sector
Klimabonus is a subsidy scheme that aims to encourage energy-efficient renovation and sustainable construction of housing, promotes heating systems using renewable energies, encourages investment in photovoltaics and promotes the purchase of electric vehicles and the installation of charging stations.
Discover Klimabonus and simulate the grants you can receive to successfully implement your projects and contribute to climate protection.
Many municipalities offer additional grants to support your housing or sustainable mobility project.
Remember to contact your local authority before starting your project!
You can also simulate the municipal subsidies thanks to our aid simulator available in the Klimabonus section.
Electricity and natural gas suppliers
On 1 January 2015, the Government introduced an innovative system that obliges natural gas and electricity suppliers to generate energy savings for consumers. Suppliers now offer new services consisting of accompanying and advising consumers on the implementation of energy efficiency measures.
In order to prove that energy saving measures have been carried out, suppliers must demonstrate that they have played an incentivising role in the implementation of these measures. They must have directly supported the consumer who carried out the measure.
This support can come, among other things, under the form of a financial contribution. Ask the natural gas and electricity suppliers operating in Luxembourg about how they can help you! A complete list of these suppliers can be consulted on the website of the Institut Luxembourgeois de la Régulation.
You can also simulate the amounts of subsidies you can receive from energy suppliers through our aid simulator available in the Klimabonus section.
nova naturstroum fund
The "nova naturstroum" promotional bonus rewards actions that are innovative or educational in nature and that promote renewable energy sources, energy efficiency and eco-technologies in Luxembourg.
More information on www.fnn.lu
The grants from the nova naturstroum fund are also include in our subsidy simulator available in the Klimabonus section.
Interest subsidy for climate loans and state guarantee
Would you like to invest in an energy-saving home? Take advantage of the government interest subsidy for your climate loan! You will benefit from attractive loan financing and simultaneously increase the market value of your property through renovation. The amount of the loan and the interest payable on it determine the amount of the subsidy.
The climate loan can amount to up to 100,000€ with a maximum term of 15 years and an interest subsidy of 1.5% (maximum 10% of the borrowed capital).
Also use a state guarantee for your climate loan. A state guarantee makes it easier for you to access a bank loan and reduces the costs of the collateral required by the credit institution. The amount of the state guarantee depends on the loan amount and can be a maximum of up to 50,000€ for a term of 15 years.