Luxembourg rental investments will be particularly attractive in 2024 !

The Luxembourg government has just announced some extremely interesting new tax measures if you want to make a rental investment in Luxembourg. These are designed to stimulate real estate investment by individuals. 

In a previous article, Barbara CBRE's Streibel explained the new support for buying your primary residence in Luxembourg. Now it's the turn of Paul Fabeck of BRICKS Real Estate to highlight, in his video, the 3 measures that make 2024 the best year for rental investment.

New Tax Measures: A Lever for Rental Investment

According to Paul Fabeck, 2024 opens up unprecedented prospects for rental property investors. These will end on December 31. It's high time to buy your apartment if you want to take advantage. 

The 3 most interesting measures are : 

  1. The brand-new Bëllenger Akt" investor tax credit which reduces registration fees by €20,000 per individual. In the case of a couple purchasing a property, the reduction is €40,000.
  2. Accelerated depreciation increases to 6% over 6 years with a tax ceiling of €250,000.

These 2 advantages are limited in time! They are reserved exclusively for acquisitions made en état futur d'achèvement (VEFA) by individuals. They must be before December 31, 2024. To qualify, the purchaser must commit to letting the property for a minimum of 2 years. 

The new apartments in Brooklyn are eligible for these measures as work is already underway. From obtaining your bank loanThe deeds are notarized. You can therefore benefit directly from these new favorable measures. 

    Reducing the capital gains tax rate to ¼ of the overall rate

    In order to mobilize real estate, the Luxembourg government has reduced the capital gains tax rate on the sale of real estate to a quarter of the overall rate. Please note that the sale must be completed by 2024! 

    This means that if you already own a rental property, it may be worth selling it and buying a new apartment. This is the case, for example, if the apartment is located in an older building that no longer complies with energy standards. It's in your interest to sell it quickly and buy another new apartment in Luxembourg, since the new property will be covered by a ten-year warranty, and you'll benefit from all 3 2024 tax measures.

    Why invest in a rental apartment in the new Brooklyn district?

    As you can see, 2024 is the year not to be missed for your rental investment in Luxembourg. Brooklyn's new apartments meet all the criteria to enable you to take advantage of these new tax and savings measures.a particularly profitable return on investment.

    1. They are particularly well-situated near Luxembourg train station. All amenities can be reached in less than 15 minutes on foot or by bike.
    2. These are luxury 1, 2 or 3-bedroom apartments. All have a balcony, terrace or garden.
    3. The new district is designed as a green setting that encourages conviviality. It focuses on the well-being of its occupants.
    4. Eaglestone guarantees non-indexed fixed price. This eliminates any possibility of unpleasant surprises. 
    5. The construction is underway and the flats will be delivered in September 2025.  Deeds can therefore be signed before a notary in the immediate aftermath of obtaining bank financing. This means you can be sure of locking in the mortgage rate and signing the deeds in 2024.
    6. BGL BNP Paribas is the bank responsible for financial guarantee until completion. So there's no risk of construction delays or stoppages. 

    As Paul Fabeck tells you, these particularly advantageous measures have a very limited duration. So if you want to take advantage of them, get in touch now! 

    Aerial view of the Luxembourg apartments

    Contact us so you don't miss out on this unique opportunity!

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