ARTICLE · 28 DECEMBER 2022

The Property Tax Reform Bill

ELVINGER HOSS PRUSSEN, société anonyme

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To clamp down on speculation and the growth of property prices, Bill No. 8082 ("Property Bill") was filed with the Luxembourg Parliament on 10 October 2022 reforming the land tax (impôt foncier - "New IFON") and ...

LuxembourgTax

Elvinger Hoss Prussen

To clamp down on speculation and the growth of property prices, Bill No. 8082 ("Property Bill") was filed with the Luxembourg Parliament on 10 October 2022 reforming the land tax (impôt foncier - "New IFON") and introducing two new national taxes: a land mobilisation tax (impôt à la mobilisation de terrains - "IMOB") and a tax on the non-occupation of housing (impôt sur la non-occupation de logements - "INOL").

The New IFON

The New IFON will continue to apply to all owners of land in Luxembourg (with a lump sum tax deduction of EUR 2,000 for the primary residence - subject to conditions).

The main point of the reform is the update of the land values which have not changed since 1941. The revised new values of land is largely conditioned by the building potential according to the classification in the General Development Plans (PAG).

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