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The City of Luxembourg can, in certain circumstances, provide financial aid to build or purchase a home in Luxembourg City to people:
- 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 generally applicable in the country and the occupants' specific needs;
- whose taxable annual income, in the year before construction or purchase, is less than €85,000 at the current index of 668.46 points, applicable to the salaries of civil servants. This amount is adjusted each year on January 1 to reflect changes in the index. Persons who are not able to produce evidence documenting their taxable income must provide a comparable document;
- who are not entitled to the full ownership or usufruct of other accommodation;
- who commit to using the subsidised accommodation for their primary or permanent residence.
Any person purchasing a home can only receive the benefit once.
When the home to be subsidised is purchased jointly by several persons, the application must specify the person considered as the recipient of the benefit within the meaning of this regulation. All of the income sources of the household will be taken into account in determining the threshold.
The benefit is set at €3,600 This sum is increased by €600 for each dependent child living in the household.
Applications must be sent to the college of the mayor and aldermen by the applicant within one year of the effective date of residence. The benefit will be paid out once all of the documents listed below have been provided:
- Copy of the notarial or administrative deed;
- Copy of the building permit issued by the municipal office (for new builds);
- Certificate(s) of remuneration for the applicant(s), or statement(s) provided by the Luxembourg Inland Revenue (Administration des contributions directes - ACD) for non-salaried workers;
- Certificate issued by the Children's Future Fund (Caisse pour l'avenir des enfants) indicating the number of children for whom family allowance benefits are paid.