Luxembourg: 2027 budget bill raises accelerated depreciation on rental housing to 6%

Bill No. 8800 proposes raising accelerated depreciation on new rental housing from 4% to 6% a year from the 2026 tax year, where the base does not exceed EUR 1,600,000. From 2028 the tax on property sale gains would be withheld at the time of the transaction.

What this changes in the calculation

If adopted, tax on rental income from a new apartment falls; the sale tax rate does not change.