Registration Duties and the Bëllegen Akt: What Buyers Actually Pay in Luxembourg

In this article

1. The duties
2. The Bëllegen Akt
3. Worked examples
4. Buying to let
5. New builds and the 2026 announcement
6. Buying with someone else
7. Other costs at the notary
8. The 3% housing VAT
9. Our take

The duties

When a property changes hands, two duties apply to the price:

• registration duty (droit d'enregistrement): 6%;
• transcription duty (droit de transcription): 1%.

Together, 7% of the price. On a €600,000 flat, that is €42,000.

For a purchase of land on which a home will then be built, the duties are calculated on the land price, not on the future construction.

Luxembourg City

The City of Luxembourg applies a communal surcharge equal to 50% of the registration duty on property transfers within its territory, subject to exemptions set out in the city's regulations. Whether and how it applies to your purchase is something the notary will confirm; it is worth asking early, because it can change the budget materially.

The Bëllegen Akt

The Bëllegen Akt is a tax credit set against the registration and transcription duties on the purchase of a home that will be the buyer's own principal residence.

The amount

The credit is €40,000 per person. It was raised from €30,000 as part of the 2024 housing package, and the law of 3 July 2025 made the €40,000 level permanent.

On 16 July 2026, the government announced an increase to €45,000 per person, to apply to deeds signed from that date once the law is adopted. At the time of writing, check the status with your notary before relying on the higher figure.

The credit is per person, and it is a lifetime amount: a couple buying together can each use their own credit, and whatever is not used on a first purchase can remain available for a later one, within the rules.

The conditions

According to Guichet.lu, to benefit, the buyer must:

• acquire the home as their personal, effective principal residence;
• move in within two years of the deed, or of completion for a new build;
• live there for at least two continuous years.

If the conditions are not met, the credit must be repaid.

Worked examples

These examples use 7% duties and a €40,000 credit per person, and ignore the Luxembourg City surcharge.

A single buyer, €450,000 flat

• Duties: 7% × €450,000 = €31,500.
• Credit available: €40,000.
• Duties payable: €0. The unused €8,500 of credit remains available for the future.

A couple, €800,000 house

• Duties: 7% × €800,000 = €56,000.
• Credit available: 2 × €40,000 = €80,000.
• Duties payable: €0.

A single buyer, €750,000 flat

• Duties: 7% × €750,000 = €52,500.
• Credit available: €40,000.
• Duties payable: €12,500.

The pattern is clear. For a single buyer, the credit covers the duties on a price of roughly €570,000; for a couple buying together, roughly €1.14 million. Above that, the difference is payable.

Buying to let

The Bëllegen Akt is for owner-occupiers. For buyers of homes to rent out, separate and time-limited measures have existed, including a tax credit on registration duties for rental investments, subject to a minimum rental period. These measures have changed several times since 2024. Our guide to buying to let sets out the current position and the 2026 announcements.

New builds and the 2026 announcement

In July 2026 the government also announced a temporary exemption from registration and transcription duties on the construction part of new homes bought before they are more than 80% complete, for three years. Like the €45,000 credit, it depends on legislation. If you are considering an off-plan purchase, ask the developer and the notary how it would apply. Our guide to buying off-plan explains the rest of the process.

Buying with someone else

The credit follows the person, not the property. When two people buy together, each uses their own credit in proportion to the share they acquire. That has practical consequences worth thinking about before the deed:

• If one partner has already used part of their credit on a previous purchase, the remaining amount is what counts.
• If only one of the two will actually live in the home as a principal residence, only that person's credit applies.
• The shares in which you buy should reflect what you actually contribute, for reasons that go well beyond tax.

The notary will ask each buyer to confirm their remaining credit and the conditions. It is worth checking your history in advance if you have bought in Luxembourg before.

Other costs at the notary

The duties are the largest item, but not the only one. At signing, you will also pay:

• the notary's fees, which are set by regulation and are much smaller than the duties;
• if you borrow, the costs of the mortgage deed, including its own fees and registration;
• miscellaneous costs for searches and certificates.

Ask the notary for a written estimate of the total amount due on the day of signing. Banks usually want to see it too.

The 3% housing VAT

New homes and major renovations may also benefit from the super-reduced 3% VAT rate for a principal residence, within a cap of €50,000 of advantage per home. This is separate from the Bëllegen Akt and is explained in our guide to the 3% housing VAT.

Our take

For a first home, the Bëllegen Akt changes the arithmetic of buying dramatically: in many cases it removes the duties entirely. The trap is to assume it does so at any price, or to forget the Luxembourg City surcharge, or to count on a higher credit that is announced but not yet in force.

Ask your notary to calculate the duties on the actual price before you sign the compromis. It is a five-minute question that avoids a five-figure surprise. See our properties for sale or our guide to the buying process.

This article describes general rules and market practice in Luxembourg and is not legal, tax or financial advice. Rules and announced measures change; confirm the position that applies to you with a notary, your bank or a tax adviser before signing.