In order to reduce the fees associated with buying a home, the Luxembourg government has introduced an allowance, known as a tax credit, for registration and recording charges that is available to anybody wishing to buy a property for personal occupation. The tax credit is capped at €20,000, applies individually to each buyer – in the case of a joint purchase, the amount will be doubled – and can be used as and when required for other purchases, until it runs out.
In order to receive the tax credit, you have to commit to occupying the property for a continuous period of at least two years. During this time, you are not permitted to rent out your home, even partly, sell it or move out of it. Failure to comply with these terms will result in being ordered to repay the allowance in full.