Luxembourg has introduced an 8% reduced VAT rate for the construction of affordable rental housing, down from the standard 17%. The relief applies to qualifying developments that meet conditions on property size, sale price, rental levels and tenant income. The measure is part of a broader housing package announced for 2026.
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Key Takeaways
Luxembourg's government has set an 8% reduced VAT rate for the construction of affordable rental housing, down from the standard 17%.
The 8% rate applies to qualifying developments that meet conditions on property size, sale price, rental levels and tenant income.
The standard VAT rate for construction in Luxembourg is 17%.
Primary source
Read the full article at VatCalcThis summary was published on VATfaqs.com on 18 July 2026. It relates to VAT developments in Luxembourg. The original source is VatCalc.
