Minister Kox: The government will introduce a tax on empty properties of EUR 3,000 per year and increasing annually by EUR 900 up to a maximum of EUR 7,500. Investors:
Minister Kox: The government will introduce a tax on empty properties of EUR 3,000 per year and increasing annually by EUR 900 up to a maximum of EUR 7,500. Investors:
12 comments
Yup, exactly what I thought to.
Pay a year 3000€ in fees, yet gain 50.000€ a year …
From what i read in the news, the impact of this policy on the housing market will also not be felt for another 5 years, which makes this policy even worse. I can understand maybe a year or two, but five years? Surely they could have done better.
Ok, but what would you expect? An expropriative tax rate because of the terrible crime of not wanting to rent your own place for a couple of years? Some people should become more realistic around real estate and rule of law.
People complaining about the crazy increase in house prices have a choice: continue voting for Bettel, Kox et al (who promise to make changes but deliver this underwhelming change that seems to make things worse not better)… or vote for somebody who will delivery some tangible changes (but who?!)
Who buys property not for it to be occupied or rented ? … the rents are super high. Even if it doesn’t match the cost you will likely not pay taxes on received rents for 5y from buying it and then be able to sell it with profit. That being said, 5y after buying you get up to 21% tax on the profit. So, renting a place 15000€ a year (which is like, right now almost the minimum) will still more profitable than leaving it empty.
I didn’t know this happened. I wish I hadn’t seen this post. I am now beyond furious and outraged
Maybe divide it by 5 or 10… ?
And suffix /brutto m².
ez bypass. Just rent to those who only want an address. The appartement remains “unoccupied” and you’ll even earn a small bucket, which pays the occupation tax.
Good luck gov.lu in catching them…
Obviously illegal , but who’s going to check anyway, with all those administrative delays?
People, you should just focus on the real problems. You just complain too much because you are being underpaid and cannot afford housing, when your bosses (and the shareholders of the companies for which you work) are keeping more revenue for them and are buying the RE and renting it out to YOU and making cash.
People should focus on who their real enemies are.
Do you have more details about this? Is it a national or municipal tax? Will it replace the municipal tax that exists in a few municipalities for empty properties? Any idea if this will lower other taxes?
Taxing empty properties makes sense from a fiscal standpoint (govt only profits if properties are occupied otherwise), but there don’t seem to be many cases like these. Luxembourg suffers from a chronic housing shortage and in the near term this will likely get worse. As of January, VAT rate is decreasing to 16% making it the lowest in EU. This will bring in more investors, companies and people into the country. Secondly, USD has skyrocketed against the EUR, making Europe an attractive place for Americans (350mm of them) to invest into. USA is also plagued by high real estate taxes and now high interest rates. In Luxembourg lending rates are still relatively low. So…Luxembourg should brace itself as demand for Luxembourgish real estate stock might skyrocket under some of these new policies.
I honestly would have welcomed this reform earlier and not only at the end of two legislative periods, but this is politics.
I still think, that this needs to be done. You won’t believe how much houses and apartments are empty out there.
Together with the rent cap, this will force mostly people who inherited a house or elderly people who live in a retirement home to sell their house instead of maybe renting it.
Meanwhile big sharks will get a looot of old cheap houses to tear down, build apartment buildings and sell them overpriced. Building companies will be the big winner of this reform, not the tenants.