The standard tax rate for a purchase of a real estate property in Luxembourg is of 7% based on the purchase value retained in the notarial writing. For future new constructions, usually the notary considers the built property value that exists the day of the notarial deed for the tax calculation. To reduce the incidental expenses associated with the purchase of a property, the Government has introduced a tax allowance of 40.000 € per buyer who purchases a real estate for personal use.
This tax credit is set for the year 2024 exceptionally to a limit of 40.000 € but will be reduced to the usual limit of 30.000 € the 1st of January 2025.