Housing support bonuses and services to make you feel at home

Housing benefits for tenants

How to find a property

In addition to the private market, publicly owned property developers and municipalities all have properties that have benefited from a government contribution and are available to rent at affordable prices. The National Affordable Housing Strategy is increasing the number of such properties available.

This housing is built or managed by the publicly owned property companies Fonds du logement and Société nationale des habitations à bon marché (SNHBM), as well as by some municipalities via their social welfare office and by social support organisations.

For its part, the SNHBM offers two types of affordable rental property:

• Housing owned by the SNHBM that is specifically intended as affordable rental accommodation.
• Affordable housing that it makes available to eligible people as part of social rental management.

Social rental management

People on low income with difficulties accessing the housing market also have the option to rent a property as part of the social rental management programme. A partner, approved by the Ministry of Housing, provides affordable housing adapted to the composition of the household for a maximum period of three years. During this period, the tenant must agree to be monitored by social services. The list of approved partners is available on the  logement.lu website.

State support for renting

One form of support is a  rent subsidy. This financial support is intended for adults who are legally resident in Luxembourg, who are  on a  low income and who already rent or wish to rent accommodation. The accommodation must serve as their primary permanent residence. All the details, as well as the application forms, are available on guichet.lu.

A short introduction to rental lease agreements and rental deposits

A  rental lease, or a residential tenancy lease, is  an agreement whereby the owner (landlord) of a dwelling and a tenant freely set the duration and specific conditions of the rental agreement. The legislation in force on rental agreements applies only to accommodation let out to private individuals as their  main place of  residence. This agreement may be verbal, but for greater security  it  is advisable to enter into a written  rental agreement. The law stipulates that the  maximum amount of rent  that the landlord can demand cannot exceed 5 % of the amount which he or she has invested in the building, except in the case of social housing and luxury housing. The Ministry of Housing has provided  a brochure and a calculator to  enable you to calculate the maximum rent for a rental property.

When the rental lease agreement is concluded, the landlord may demand the payment of  a rental deposit; this sum may not exceed three months' rent. The purpose of the deposit is to serve as a guarantee for the payment of rent, additional charges, and any damage that may be caused to the property.

To finance the rental guarantee, there is assistance available to adults legally residing in Luxembourg who wish to rent accommodation but do not have the necessary means. Under certain conditions, the Ministry of Housing can act as guarantor. In return, the tenant will have to commit to saving the total amount of the rental deposit over a period of three years. All the conditions, as well as the application forms, are available on  guichet.lu.

Housing support for home owners

How to find a property

The housing available via the Housing Fund is aimed at people who meet certain conditions; in particular they must be a private individual (not a company) and occupy the property as a private dwelling, and they must not already own a property in Luxembourg or another country. All the practical details and forms are available on the Fonds du logement website.

The  SNHBM   offers turnkey, fully  finished properties on the basis of certain criteria including  income and assets ceilings. Details of   current and future projects can be found on the SNHBM website.

Other state aid

Direct aid in the form of a capital payment

• State home loan guarantee. To be eligible for a mortgage, banks will demand guarantees. If you are unable to provide sufficient guarantees  to finance a loan for the acquisition, construction, improvement, refurbishment or renovation of a home that is your main and permanent residence, the State may provide help to guarantee the loan.
• Home ownership incentive. The amount of this financial aid is  set according to the income and situation of the family making the application. It can vary   between 500 and 10,000 euros, with increases of +40% for joint ownership properties and +15% for semi-detached houses.
• Savings subsidy. If  you have saved  in order to buy or build a home, you may also be eligible for this subsidy. This aid is linked to home-buyer incentive and its maximum amount is 500 euros per year and 5,000 euros over 10 years.
• Subsidy for the creation of integrated housing. It is intended for the creation of a second dwelling in a single-family home. The amount of this subsidy is set at 10,000 euros.
• Home improvement subsidy. The aim is to improve the living conditions as well as the health and safety of homes that are the main or permanent residence.
• Subsidy for special renovations for persons with a disability. It applies to renovations that are not covered by dependency insurance. The maximum ceiling is 60% of the cost of the work carried out, up to a maximum of 20,000 euros per person.
   

Financial aid for interest on loan repayments

• Interest subsidy. This subsidy makes  it possible to reduce the monthly charges for the repayment of a loan to build or renovate  a dwelling used as a main residence.  Loans  are taken into consideration  up to a maximum amount of 200,000 euros. This grant also reduces monthly repayment charges by up to 20,000 euros per dependent child, with a maximum amount of 280,000 euros.
   

Indirect financial aid: tax benefits

Several indirect support mechanisms are currently available. We would advise you to go to the property tax section on the logement.lu website to find out more and to see guichet.lu for practical details about procedures.
 

Subsidies for sustainable housing and energy performance

Today, housing must meet the three requirements of sustainable development: it must be ecological, economical and social. The Ministry of Housing offers a series of benefits related to the energy performance of a property:

• State guarantee for energy-efficiency loans. The loan covered by the guarantee must be used for renovations or technical equipment for the main, permanent home that is 10 years old. The maximum amount is  50,000 euros over 15 years.
• Interest subsidy for energy-efficiency loans to reduce the interest burden on energy-efficiency loans for main and permanent homes. The maximum amount is 100,000 euros per housing accommodation.
• The Klimabonus,  scheme is a system of subsidies to encourage the sustainable  and energy-efficient  renovation of housing. It can be supplemented with the Topup Kimabonus.