Why Buying Off-Plan (VEFA) Property is Advantageous in 2025 in Luxembourg?

Buying a property off-plan (VEFA - Vente en l’État Futur d’Achèvement) in Luxembourg in 2025 offers several benefits, including tax advantages, financial incentives, and practical perks. Here are the main advantages:

🔹 1. Attractive Tax Benefits
✅ Reduced VAT at 3%: For a property intended as a primary residence, a reduced VAT rate (instead of 17%) applies, allowing up to €50,000 in savings per property.
✅ Lower registration fees: Unlike existing properties, purchasing off-plan means registration duties apply only to the land value, reducing acquisition costs.

🔹 2. Customization & Strong Guarantees
✅ Personalized finishes: Buyers can choose materials, layouts, and finishes according to their preferences.
✅ 10-year structural warranty: Protection against structural defects for 10 years.
✅ Modern energy standards: New constructions comply with passive house or nearly zero-energy building (NZEB) standards, lowering energy bills.

🔹 3. Easier Financing
✅ Attractive mortgage conditions: Possibility to negotiate better interest rates and benefit from financial assistance.
✅ Staggered payments: Payments are made gradually based on construction progress, reducing the initial financial burden.

🔹 4. Increased Property Value & Resale Potential

✅ Potential capital gain: New properties appreciate in value due to their energy efficiency and modern features.
✅ High rental demand: If purchased as an investment, new homes are highly sought after and can generate attractive rental income.

With high demand and limited supply in Luxembourg in 2025, buying off-plan remains an excellent opportunity to maximize investment while securing a high-quality, modern property. 📈🏡