Housing assistance and the State Guarantee Existing assistance and how you can benefit from it

The good news: The State offers a wide range of housing assistance

The Luxembourg State and some local authorities offer financial assistance to those buying, building or renovating real estate properties. Information about the amount and terms of such assistance is an integral part of the personalised advice that we offer you.

What housing assistance is available?

You can receive two types of aids, depending on your family and financial circumstances:

Capital assistance
Capital assistance
One-off support paid at the start of the loan
Interest assistance
Interest assistance
Monthly aids that reduce the monthly cost of your housing loan
Full information about government-backed housing assistance is an integral part of the personalised advice that we offer you in our branches.
Charles Pletsch - Housing loan expert

Capital assistance

  • Construction subsidy granted to build a new home (max. EUR 9.700).
  • Acquisition subsidy granted for the purchase of a previously inhabited home (max. EUR 9.700).
  • Home-improvement subsidy granted to finance certain works to renovate a home more than 15 years old. This subsidy equates to 30% of the amount invoiced for works (max. total of EUR 10.000).
  • Savings premium depending on the accrued interest on your various savings accounts (max. EUR 5.000).
  • Grant for architects’ and surveyors’ fees (max. €1.250).
  • Subsidy for adaptations for individuals with reduced mobility (max. EUR 15.000).

Interest assistance for a borrowed capital of EUR 175.000 maximum

  • Interest relief (0,5% per dependent child)
  • Interest subsidy (between 0,575% and 2,45%)

Under what terms is this assistance offered?

The granting and amount of some of the assistance depends on the following factors:

  • Your family circumstances
  • Your financial situation
  • Your income
  • The living space of the real estate being financed
  • You must not own or be a life tenant in another housing property

The details can be found in the brochure below:

Tax credit on notarised deeds for your main and personal home "Bëllegen Akt"

Transfer and registration fees total 7%, calculated on the sales price of an existing property or land (with the part already built) for a new construction.

As a natural person, you can benefit from a tax credit against these fees totalling EUR 30.000 per acquirer.

The good news:

  • If you have a balance left from the loan after your first main home acquisition, you can deduct this balance from your next acquisition of a main home.
  • Buying as a couple? Then you can receive double the amount!

Super-reduced VAT rate

Do you have plans to build or renovate your main home?

Subject to certain conditions, you could be eligible for the super-reduced 3% VAT rate, up to a total of EUR 50.000 per home.


When buying a new home or a home not yet inhabited, you can even request a partial refund of the VAT.

The State Guarantee

To get a home loan, you need to have principal capital. However, if you do not have this, the government can be the guarantor of your loan.

You need to meet certain conditions to receive the State Guarantee, such as:

  • Hold a bank account or housing savings scheme contract at the same bank for 3 years
  • Have a minimum capital of EUR 240 in this account
  • Once this EUR 240 minimum has been reached, deposit at least EUR 290 per year into this account, for 3 years

Would you like to save and receive a tax break? Find out about our housing savings scheme with BHW!

Comprehensive advice: aid & financing advice

A comprehensive and tailor-made quality advice must take into account all financial aid to be received.

Our consulting offer for the financing of your ecologically responsible project includes a simulation of all state and private aid you can receive. For this purpose, we have developed a tool in collaboration with energieagence. Determining the real need for financing, after deduction of all financial aid, will allow you to avoid unnecessary costs and to benefit from a tailor-made financing offer, perfectly adapted to your situation and your project. For your sustainable projects, put all the subsidies on your side and simulate your energy aid !


The State offers a wide range of housing assistance, in terms of both the principal and the interest on loans.

Remember you can benefit from tax credits on notarised deeds ("Bëllegen Akt") and the super-reduced VAT rate.

If you cannot provide sufficient own guarantees, remember the State Guarantee.

For your energy efficiency plans, we help you to benefit from all the state and private aids available.

Our Housing Advisers will help you with your application for housing assistance.