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What financial help to renovate your home?

27 NOV. 2018 | PROPOSED BY OUR PARTNER ING LUXEMBOURG

Renovating or improving your home involves a lot of risks, especially financial ones. Keep an eye on your expenses to avoid any overspending that would put your budget at risk. Do not neglect the many financial help you can get from the Luxembourg state.

There are three main types of renovation aids: direct capital grants, subsidies for improving energy performance and indirect aids in the form of tax benefits.

Direct capital assistance

First of all, there is the premium for improving old housing . It is granted for certain work done to improve the liveability, safety and security of old housing. The improvement bonus corresponds to a maximum of 30% of the invoices related to the improvement work. It can not exceed the total sum of 10,000 euros per beneficiary. Its amount is fixed according to the income and the family situation.

Two main conditions are required to qualify for this bonus. The first is that you must live in the accommodation as a permanent residence and not be the owner or usufructuary of another dwelling, whether in Luxembourg or abroad.

The second concerns the actual work. These must be done in a building that was occupied the first time (by you or the previous owner) more than 15 years ago. If you intend to enlarge the surface of the building or create new rooms, only the criterion of the useful living space will be taken into account: between 65 and 140 m ² for a single-family dwelling and between 45 and 120 m ² for an apartment. This calculation does not include cellar, attic and garage as well as common areas in condominiums. No surface condition is to be met for buildings constructed before September 10, 1944.

This assistance may be combined with the additional premium for architects 'or consulting engineers' fees up to a maximum of € 1,250.

You can also benefit from assistance for special accommodation expenses for people with physical disabilities : 60% of the cost of the work without exceeding 15,000 euros. If the dwelling was built after September 10, 1944, it must meet the same floor area criteria as for the improvement premium: between 65 and 140 m ² for a single-family dwelling and between 45 and 120 m ² for an apartment.

Subsidies for improving energy performance

Subsidies from the Administration of the Environment are planned if you intend to improve the sustainable energy performance of your home ( PRIMe House 2017 ). They concern, on the one hand, the sustainable energy improvement of a dwelling dating back more than 10 years (various insulation works, replacement of windows, controlled ventilation) and, on the other hand, the establishment of technical installations promoting renewable energy sources (solar thermal or photovoltaic installation, heat pump, wood boiler, heat network and / or connection to a heating network).

Indirect assistance (tax benefits)

Indirect aids are of two types. The first concerns the super-reduced VAT rate . The Luxembourg State submits the renovation of housing intended for primary housing purposes at a reduced rate of 3%. This tax allowance can not exceed 50,000 euros per unit. In addition, not all works benefit from the reduced rate. This is particularly the case for equipped kitchens, special technical equipment such as the installation of alarms, interior blinds and curtains or landscaping surroundings.

You can also deduct from your taxes the interest charges and other costs related to the renovation of your home provided that you do not occupy it for the duration of the work. Be careful, this deduction is not as easy to obtain as that. In the case of direct taxes, a dwelling that is continually available to a taxpayer is considered to be a dwelling occupied as a principal or secondary residence. In addition, the Administration des Contributions Direct does not consider as expenses of renovation expenses which aim to change the nature of a building (example: subdivide the dwelling into smaller dwellings), to improve it (example: install a central heating or lift) or enlarge it (example: develop an attic floor).

A tip: find out about state aid before you start, especially if you plan to incorporate the amount of aid in your renovation budget. Do not hesitate to read attentively all the information contained in the Citizen Portal of the site guichet.public.lu .

For more information, please visit www.ing.lu/immo or visit us at the branch.

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