3% VAT on renovating your home
In Luxembourg, renovation work on a home can be invoiced at the super-reduced VAT rate of 3% instead of 17%.
Who qualifies?
The property must be used as a main residence, by you or a tenant. It must be at least 10 years old, or have been bought less than 5 years ago, in which case its age does not matter.
How much do you save?
You pay 3% VAT instead of 17%. The benefit is capped at €50,000 of VAT per home.
How do you apply?
The application goes to the Administration de l’enregistrement, des domaines et de la TVA (AED) before work starts, for a quote of at least €3,000 excluding VAT. With your agreement (a signed mandate), we can file it for you.
Not everything qualifies: fitted kitchens, alarms, home automation, air conditioning and indoor blinds, for example, are excluded. During the visit we’ll tell you which items in your quote qualify.
If work has already started, you can still claim the difference back yourself afterwards. More on guichet.lu.
General information, not legal advice. The rules can change: check them on guichet.lu or with the AED before you sign your quote.