VATupdate
Luxembourg

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Luxembourg Doubles Housing VAT Refund Amid Shift Away from Energy Tax Cuts

  • Luxembourg plans to double the maximum refund under its super-reduced housing VAT scheme from €50,000 to €100,000, pending European Commission approval.
  • The move reflects a shift toward targeted VAT relief for housing and investment rather than broad VAT cuts on fuel and energy.
  • The policy is intended to reduce housing costs and support residential construction and renovation.
  • Luxembourg will not cut VAT on fuel, gas, or electricity; instead, it will continue direct subsidies for energy costs through the end of 2026.

Source: vatcalc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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