Real Estate - Tax And Legal Developments

This brief report provides a summary of the most recent Luxembourg tax developments that currently affect and will be affecting real estate practitioners throughout 2017.

Tax reform proposal 2017 – abolition of lease registration requirement

On 26 July 2016, the Luxembourg government presented to Parliament bill of law n°7020 to implement the 2017 tax reform previously announced in February 2016. Once enacted into law, it will amend two laws in order to abolish the mandatory requirement to register leases, subleases and subrogation of leases. These include the amended law of 13 June 1984 on the review of certain legal provisions on registration, succession and stamp fees, as well as the amended law of 23 December 1913 on the revision of the law on taxes levied by the Luxembourg Registration and Estates Department (Administration de l'Enregistrement et des Domaines).