Buying and investing in 2024 ≥ ATTRACTIVE TAX MEASURES Thanks to the law of 22 May 2024, property investments have been made more attractive until the end of the year, despite a context of higher interest rates. ≥ STAGNATING FIXED RATES Fixed rates have been stagnating for several months, and the inversion of the yield curve shows a scheduled fall in short-term variable and fixed rates. The uncertainty lies in the timing of this fall and the future key rate of the Central Bank once inflation has been brought under control. ≥ PROPERTY LOANS IN LUXEMBOURG It is possible to remain flexible in order to take advantage of the effective fall in rates while at the same time remaining competitive. TAX BENEFITS FOR OWNER-OCCUPIERS ≥ Crédit d’impôt accru Owner-occupiers will benefit from a 40,000 euro tax credit on registration fees per purchaser in 2024. In most cases, there will therefore be no tax credit for a couple. ≥ Interest deduction Up to €4,000 of interest per year per person can be deducted, with an interest subsidy of €6,000 available from the employer. A couple with two children can therefore deduct up to €22,000 a year in interest, reducing the cost of their home loan by almost €10,000 a year. Interesting fact: Buying your own home in Luxembourg is still an attractive option. With its «Buy or rent» tool, available on nexvia.lu, Nexvia has shown that buying is more attractive than renting after only three years of occupation. TAX BENEFITS FOR VEFA INVESTORS ≥ Tax credit VEFA investors benefit from a €20,000 tax credit on registration fees per purchaser. They will therefore pay little or no registration fees. ≥ Accelerated depreciation Accelerated depreciation on the construction share is increased to 6% for 6 years before reverting to the standard rate of 2%. Normally limited to two acquisitions, this scheme is almost unlimited in 2024! Interesting fact: These measures make property investment more attractive in 2024. Using its «Investment return» tool, Nexvia has shown that the net return on equity invested in 2024 increases by more than 2% per year over an 8-year period. For our Daytona residence, for example (based on a two-bedroom flat), we would obtain a return of 7.8% with conservative assumptions and fixed-rate financing under current conditions. ≥ Reduced taxable gain Capital gains tax has been reduced to a quarter of the overall rate, which, combined with tax relief measures, significantly reduces the tax payable on a sale. So now is the time to take advantage of this mechanism to modernise your property portfolio while benefiting from significant tax breaks.a We build for generations Building Legacy