3. Inform yourself about taxes and state aids

You can also save on taxes: the smaller the plot and house, the lower the taxes. The normal rate for real estate purchases (houses, flats, building plots) is 7%, of which 6% is for registration fees and 1% is for recording fees. As you can see this is a considerable cost factor.
To reduce the incidental expenses associated with the purchase of a dwelling, the Government has introduced a tax allowance—known as a tax credit (“Bëllegen Akt”)—on registration and recording fees for anyone wishing to purchase a building (and certain outbuildings and attachments) for use as their personal residence. This tax credit is limited to EUR 30,000 per buyer. For a couple, this amount is doubled since the tax credit applies to each buyer individually. The tax credit may be used successively for several purchases until it has been exhausted. It is also important to know that the "Bëllegen Akt" can only be used once in a lifetime.
In addition, each commune is authorised to levy a municipal tax (property tax), which owners have to pay each quarter to the local authority.
Make sure to inquire beforehand about all the relevant costs and find out what taxes you will have to pay.
However, various state aids are available from which you can benefit when building a house. But, given the wide range of existing subsidies, it is advisable to seek professional advice on the relevant criteria and conditions.
Make an appointment with one of our advisors who will answer your questions and explain the options available to you.

How to save on your house construction

First real estate purchase or investment?