On 19 December 2024, the Luxembourg Parliament passed the 2025 budget law at first reading. From a tax perspective, the 2025 budget law mainly introduces new temporary tax measures, applicable until 30 June 2025, to boost the construction sector and facilitate access to housing in addition to the ones that had already been introduced as per the Law dated 22 May 2024 introducing various measures to revive the housing market. The latter was designed to revive the construction sector, by tackling both economic and structural housing problems with both a structural and a temporary ‘housing’ package of measures currently in force until 31 December 2024.
However, considering the positive indications coming from the sector and in order to not slow down the current recovery in property transactions, the government has also just submitted a new draft law to Parliament in order to further extend the temporary tax measures introduced by the Law dated 22 May 2024 introducing various measures to revive the housing market.
Our Tax Managing Partner, Keith O'Donnell, and Chief Knowledge Officer, Marie Bentley, share a brief description of the tax measures that have just been approved.