One of the major advantages of buying off-plan in Luxembourg is the tax benefit. For a primary residence, VAT on the construction portion can be reduced to 3%, representing a significant saving compared to the standard rate. In addition, the “Bëllegen Akt” tax credit helps reduce registration fees, making the purchase of a new property even more appealing. New builds also offer better energy efficiency, resulting in lower bills and long-term comfort.
Buying off-plan also means benefiting from a strictly regulated legal framework. The developer must provide a completion guarantee, ensuring that the property will be delivered even if the builder encounters financial difficulties. Upon delivery, several guarantees still apply: the one-year completion guarantee covers any defects identified during the first year, the two-year warranty covers equipment, and the ten-year structural warranty protects against serious defects affecting the building’s structure. These protections make VEFA purchases particularly secure.
Buying off-plan also allows you to customise your future home. Depending on the developer and the stage of construction, you can often choose finishes, materials, and certain interior features. This gives you the opportunity to obtain a property that perfectly matches your tastes and lifestyle. Additionally, everything is new — no renovations, no unexpected issues at the time of handover.
New properties, built according to the latest energy and environmental standards, tend to retain their value better over time. Whether you plan to live in the property or rent it out, an off-plan purchase stands out thanks to its modern design, energy performance and comfort — all highly sought-after features on the Luxembourgish market. Furthermore, staggered payments based on construction progress provide financial flexibility and make budget planning easier.
Buying off-plan in Luxembourg combines security, modernity and profitability. It is an ideal solution for anyone wishing to become the owner of a new, efficient and customisable property, while enjoying the benefits of a favourable legal and fiscal framework.
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