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

  • Home ownership incentive
  • Interest subsidy
  • Savings subsidy
  • Subsidy for the creation of an integrated home
  • Renovation subsidy
  • Topup Klimabonus subsidy
  • Subsidy for special home adaptations
  • State home loan guarantee for building, purchasing or improving the property
  • State home loan guarantee for climate loans
  • Interest subsidy for climate loans

Rental subsidies:

  • Rental deposit
  • Rent subsidy

Interest assistance

  • Interest subsidy between 0,25% and 2,45% on a maximum amount of EUR 200.000 of the interest rate of the housing loan (plus EUR 20.000 for each dependent child up to a maximum of EUR 280.000)

Under what terms is this assistance offered?

The allocation and level of some of these grants depend on the property and financial situation of the domestic community purchasing the property.

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 obtain 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:

  • Not be the owner of another property
  • Have held a savings account with the same bank for at least 3 years
  • Prove an increase of at least EUR 1.000 per year in the balance of this savings account for at least 3 years prior to the application

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


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.