Legal
Extract from the amended regulation of 17 December 2007 establishing a municipal grant to promote property ownership in Luxembourg City (Règlement modifié du 17 décembre 2007 créant une allocation communale devant favoriser l'accession à la propriété immobilière en Ville)
Article 1 – Object
Under the terms and conditions listed below, the City of Luxembourg may provide financial aid to subsidise the building or purchase of a home in Luxembourg City.
Article 2 – Beneficiaries
The grant referred to in Article 1 is available to natural persons who meet each of the following requirements:
a) persons who are building or purchasing a house or commonhold flat for residential purposes in Luxembourg City, provided the accommodation meets the health and safety standards that generally apply in Luxembourg, and the occupants' specific needs;
b) in the case of sole ownership: persons who, in the year preceding the construction or purchase, earned less than €108,789.88 in annual taxable income (based on the index value of 855.62 on the sliding scale of wages). This amount is adjusted on 1 January each year to reflect changes in the sliding scale of wages;
in the case of joint ownership: persons who, in the year preceding the construction or purchase, earned less than €121,633.18 in annual taxable income (based on the index value of 855.62 on the sliding scale of wages). This amount is adjusted on 1 January each year to reflect changes in the sliding scale of wages;
c) persons who are not entitled to full ownership or usufruct of another residential property;
d) persons who commit to using the subsidised accommodation as their primary and permanent residence.
Grants are awarded only once per eligible applicant.
When the home to be subsidised is purchased jointly by several persons, the application must specify which person is to be considered the recipient of the grant within the meaning of this regulation. The total income of the entire household will be taken into account in determining whether the threshold specified in Article 2b is reached.
Article 3 – Amount
The amount of the grant is set at €7,200.00, plus €1,200.00 for each dependent child living in the household.
Article 4 – Grant procedures
Applications must be sent to the college of the mayor and aldermen within one year of the effective date of residence. The grant will be paid out once all of the following documents have been provided:
Certificate of residence issued within the last two months
Copy of the notarial or administrative deed
Remuneration certificate(s) or equivalent document(s), or statement(s) provided by the Luxembourg Inland Revenue (Administration des contributions directes – ACD) for non-salaried workers
(year preceding the construction or purchase)
Certificate issued by the Children's Future Fund (Caisse pour l'avenir des enfants) specifying the number of children for whom family allowance is paid (this document is only required for applicants with children)
Article 5 – Reimbursement
The grant must be reimbursed if it was obtained by misrepresentation, or if the subsidised accommodation is rented out within a ten-year period.
Article 6 – Entry into force
The changes will take effect on 1 January 2023 and apply to all applications received from that date.