Limits and deductible interest

• Can I deduct interest paid on a loan for a secondary home?

  If your second home is not rented out, then you cannot deduct the interests expenses.Some readers

• What is the deductible limit for interest on my mortgage?

  The deduction limit varies according to two criteria: The year you moved in The composition of your household In addition, the year in which you moved in determines the maximum deduction limit per person you can claim. Here are the deductible limits as from the 2024 tax year: Which date should you indicate in the "Availability Date" field? (https://storage.crisp.chat/users/helpdesk/website/1c5Few readers

• I don't have any rental income but some data is reported in this category. Is this normal?

  If you are the owner of your principal residence, the interest on the mortgage for your principal residence appears in this category, as do notary fees for opening a loan and bank administration fees. In the case of a new acquisition during the course of the tax year, you will also be able to see the notary's fees for opening a loan and the bank administration fees.Few readers

• How is the deductible interest charge prorated?

  For the 2024 tax year: No prorata calculation is made for the 2024 tax year. For the 2023 tax year: The calculation of deductible interest expense is based on a number of factors, including : the date of acquisition of the property the date on which you moved into the property the interest paid on the mortgage the interest ceiling. Here are 2 examples: A couple (married or civil union) bought a house on 01/04/2023 and moved in on 01/07/2023. TFew readers

Main residence

• Where do I indicate the interest on the mortgage for my main residence?

  Your property loan should be indicated on the "Main residence" form. You must first go to the "Tax situation" form and then tick the first box in the "Real estate in 2024" category. Then you must go to the "Main residence" form and fill in the new fields.Popular

• Can I deduct renovations to my main residence ?

  Find out if you can deduct renovations to your main residence on your Luxembourg tax return with our detailed guide.Some readers

• What can I deduct in the year of acquisition of my principal residence?

  For the year in which you bought your principal residence, you can deduct: interest on your mortgage the notary's invoice for the loan (+- €3,000 - €5,000) bank commission The notaire's invoice for registration fees (acquisition of the property) is not deductible.Few readers

• Where should I indicate the notary's fees and bank commission for the purchase of my main residence?

  First, you need to tick the "Our household owns a real estate which we inhabited ourselves in 2023" box in the "Tax situation" category, as shown in the photo below. Next, a new category appears called "Main residence". In this new category, you must indicate the date of occupation, which is normally within the tax year, as shown in the photo below. (https://storage.crisp.chat/Few readers

• Can I deduct property tax?

  Property tax (impôt foncier) on your main residence is not deductible. It is deductible only for rental properties.Few readers

• Which date should you indicate in the "Availability Date" field?

  In previous tax returns, you had to indicate the date of occupancy of your primary residence, meaning the date you officially registered at this address with your municipality. This date was used to determine the deductible interest limit. Now, the concept of the availability date is taken into account: If you occupied your primary residence before 2022, simply indicate your occupancy date in the "Availability Date" field. If you moved in after 2023, you must provide the availability date,Few readers

Future home under construction

• Where should I indicate the notary's fees and bank commission for the purchase of my future main residence?

  Firstly, you must tick the box "Our household owns a real estate in construction and/or not yet inhabited in 2023" in the "Tax situation" category, as shown in the photo below. Next, a new category appears called "Future main residence". In this new category, you can enter the notary's fees and bank commission under "Acquisition fees", as shown in the photo below. (https:/Few readers

• Where do I have to indicate the interest from the mortgage on my future principal residence under construction/renovation?

  The interest on your mortgage should be indicated on the "Future main residence" form. First, go to the "Tax situation" form and tick the second box in the "Real estate" category. Then go to the "Future main residence" form and fill in the relevant fields.Few readers

Purchase of a property

• How to declare the purchase of a property?

  The purchase of a property located in Luxembourg or abroad must be declared in your tax return. To do this, in the "Tax situation" form, tick "I bought or sold a real estate in 2023" and save. Then you will find the category "Real estate operations" in which you can fill in the different fields.Some readers

• How can I find the ‘Real estate transactions’ category?

  Step 1: Update your tax situation Go to the “Tax Situation” section in your taxx.lu account. Check the box “We bought or sold a real estate property.” Click “Save” to confirm your selection. Step 2: Access the “Real Estate Operations” section Once saved, a new section called “Real Estate Operations” will appear in the left-hand navigation menu. Open this sFew readers

Sale of a property

• How to declare the sale of a property?

  For the sale of a property, a distinction must be made between two cases: First case: The sale of your main residence If you have sold your main residence, the capital gain is NOT taxable. All you have to do is fill in the first page of form 700 and fill in the fields on taxx.lu in the category "Real estate operations". In order to determine whether this is your main residence, youFew readers

• What allowances are available for property sales?

  When selling a property (built or not), there are two cases to be distinguished: 1. Speculative profit Speculative profit is where the investment was made solely with a view to reselling in the short term and making a profit on the sale. By "short-term", the tax authorities consider that if the purchase and sale of an asset takes place within a period of less than 2 years, then the investment is speculative. The speculative profit will then be calculated as follows:Few readers

• Is the sale of my principal residence tax-free?

  As long as the property sold is considered to be your principal residence, the gain arising from the sale is exempt from tax in Luxembourg. To find out whether a property is considered to be your principal residence, you can use our free simulatorFew readers

• What is the transfer of real estate capital gains and what are its general conditions?

  The transfer of real estate capital gains allows the taxation of a capital gain realized in 2024 to be deferred by reinvesting it in one or more replacement properties under certain conditions. Only the taxpayer who realized the capital gain (or their successors in case of death) can request the transfer when filing their tax return. The replacement property must be located in Luxembourg and meet specific criteria, particularly in terms of social rental management or energy performance. The tranFew readers

• Where to request a copy of my notary deed (Luxembourg Real Estate):

  A copy of the notary deed will be necessary to declare the sale and/or the purchase of a real estate located in Luxembourg. It can be requested directly from your notary office or alternatively can be requested from the mortgage registrars. Mortgage registrars are required to provide, to anyone who requests it, copies of deeds transcribed in their registers, as well as copies of existing registrations or certificates confirming that none exist (Article 2196 of the Civil Code). There are thrFew readers

Other expenses

• Can I deduct notary's fees for my main residence?

  In the year in which you acquire your main residence, you can deduct the notary's bill for the "credit opening". The amount is generally between €2,000 and €5,000. Here is an example of such an invoice: BCEE (https://stPopular

• Can I, as a tenant, deduct my rent from taxes?

  No, you cannot deduct your rent from taxes.Some readers

• When is a home considered obsolete or dilapidated?

  According to the circular from the Director of Taxes, a building is considered dilapidated when it is "in such a state of disrepair or disrepair that it no longer meets the conditions for being considered a dwelling".Few readers

• What documentation is used to determine whether or not a building constitutes a dwelling?

  The decision is taken by the tax office, based on the taxpayer's detailed explanations of the condition of the building. The tax office may ask the taxpayer to support his explanations with invoices for work carried out, receipts for building materials, architects' or engineers' plans, applications for planning permission, or any other means of demonstrating that the building has undergone or will undergo work essential to its occupation.Few readers