Announced housing support measures by the Luxembourg government!

Claude Meisch, the DP Housing Minister, is planning to adjust various forms of support such as rent subsidies and state guarantees. Accelerated depreciation for new buildings will be reintroduced and the sale of flats for social rental management or with energy class 1A+ will remain tax-free.

The state intends to acquire 800 flats from the private market over the next 3 years in order to offer them at affordable rents. This is to be done with a budget of 480 million euros, while the budget for public affordable housing over the next 2 years is just under 1 billion euros.

In addition to the short-term measures, the government is also planning a national conference on housing construction. This will take place on 22nd February in Senningen with representatives from cities, municipalities and the trade union. The conference will focus on long-term projects, such as administrative simplifications and procedures. Further measures are to be announced by the summer.

The structural measures presented by the government include an increase in the upper limits for tax deductions by a third. People who live in a flat for the first 5 years can now deduct 4,000 euros in debt interest each year, compared to the previous 3,000 euros. Residents of GLS (Gestion Locative Sociale) flats do not have to pay tax on 90 % of the rent. In addition, the sale of properties by public property developers such as SNHBM and the Fonds du Logement are tax-free.