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Guides · Buying
State aid and tax relief for buyers
Besides the Bëllegen Akt on the duties, buyers of their own home can get income-tested aid from the State and deduct part of their mortgage interest from their taxable income. Here is what exists in 2026 and when to apply.
Aid from the State
These aids come from the law of 7 August 2023 on individual housing aid. Most depend on your income and household.
| Aid | What you get | Apply |
|---|---|---|
| Home ownership bonus (prime d'accession) | €500 to €10,000, depending on income and household | Within 1 year of the deed |
| Savings bonus (prime d'épargne) | 10% of the yearly increase in your savings, up to €500 a year and €5,000 in total | Within 2 years |
| Interest subsidy (subvention d'intérêt) | The State pays 0.25% to 3.50% of the interest on a loan of up to €200,000, plus €20,000 per child (€280,000 at most) | See guichet.lu |
| State guarantee | Helps buyers with limited savings get a mortgage, by guaranteeing part of the loan | See guichet.lu |
All capital aids together are capped at €35,000.
Mortgage interest deduction
If you live in the home you own, you can deduct mortgage interest from your taxable income. The ceilings below apply from tax year 2024. They count from the year the tax office sets the home's rental value, and they apply per person in the household: they are multiplied for a jointly taxed spouse or partner and for each child.
| Period | Deductible interest per year |
|---|---|
| Before you move in | In full |
| The first year and the next | In full |
| The next 4 years | Up to €4,000 |
| The 5 years after that | Up to €3,000 |
| After that | Up to €2,000 |
Related help
- Bëllegen Akt: up to €40,000 per buyer off the registration duties (see the costs of buying a home).
- 3% VAT instead of 17% on building or renovating your own home, up to €50,000 saved.
- Renovating: Klimabonus Wunnen grants and climate loans with an interest subsidy and a State guarantee.
Last checked 7 October 2026. This guide is general information, not tax or legal advice. The Ministry of Housing and the tax office decide your exact entitlement.
Sources: guichet.lu: capital aid for buyers · guichet.lu: interest subsidy · ACD newsletter, 31 Dec 2024: mortgage interest ceilings · Klima-Agence: financial aid programmes